See attached- power point
BUS 4302, Business Policy and Strategy 1
Course Learning Outcomes for Unit VI
Upon completion of this unit, students should be able to:
3. Analyze external and internal audit processes.
3.2 Explain how a company stands in relation to its competitors.
5. Examine the process of selecting an industry appropriate strategy.
5.2 Discuss how information from a strengths, weaknesses, opportunities, and threats (SWOT)
analysis can be used to expand an organization’s products or services.
8. Assess the strategy evaluation process.
8.4 Analyze organizational performance through a SWOT analysis.
Required Unit Resources
Chapter 9: Strategy Evaluation and Governance
Unit Lesson
Chapter 9 describes how to effectively evaluate strategies and make timely changes as needed. In this
context, it explains how to develop a balanced scorecard and utilize contingency planning.
Every strategy must have the ability to be flexible and adaptable. Any time an organization’s environment
changes, the existing strategy must be updated or replaced. In this unit, we will dive deeper into the strategy
evaluation phase. There are three main types of strategy evaluations, as described below:
1. understanding the foundation of the firm’s strategy,
2. analyzing and comparing expected and actual results, and
3. implementing actions to ensure the performance is consistent with the plan.
When you have an opportunity, please take a look at the case study on page 272 of the course textbook titled
“Exemplary Strategist Showcased: Anthony Wood, Founder and CEO of Roku, Inc.,” as it reflects on how this
organization has been adaptable and successful since start up in 2002.
Models
There are many different criterions and models for evaluating strategies. One example is Rumelt’s criteria for
evaluating strategies; conduct a web search for Rumelt’s criteria for evaluating strategies to learn more. This
criteria is often used in the industry because it is proven and vetted among many organizations. There are
four main criterion that include consistency, consonance, feasibility, and advantage (David et al., 2020). The
chart below gives a brief description of each.
Rumelt’s
Criteria
Description Example
Consistency Organization must present consistent
goals and policies.
Have you noticed that Coca-Cola tastes the same in
one part of the United States as compared to another
part of the United States?
Consonance Organization must evaluate
strategies according to societal
and/or individual trends.
Look at the television trends from the 1990s to
present. In an effort to remain relevant, organizations
must be able to adapt.
UNIT VI STUDY GUIDE
Evaluating Strategies
BUS 4302, Business Policy and Strategy 2
UNIT x STUDY GUIDE
Title
Feasibility Strategies must be feasible and not
over burdensome
Could you imagine if Starbucks attempted to open
500 new stores in a one-month period? This is not
feasible and would create a burden.
Advantage Strategies, in regard to 1) resources,
2) skills, and 3) position, must be
assessed for competitive advantage.
The iPhone would be a great example of having a
competitive advantage among other phone
developers.
(David et al., 2020)
Measuring Organizational Performance
Measuring organizational performance can be accomplished by evaluating the expected results and
comparing that data to the actual results. Also, the long-term and short-term objectives are evaluated. If it is
noted that an organization did not achieve its expected outcomes related to goals and objectives, the
organization must implement corrective actions.
In an ideal situation, these corrective actions have already been developed; if not, the actions must be
developed and implemented. Time is critical in relation to corrective actions, and any corrections must be
implemented quickly. Both internal and external factors must be considered when developing any corrective
actions. Also, policies, trends, and other factors need to be considered in an effort to effectively resolve any
variable. An example is office supply stores in the United States. Organizations, such as Staples and Office
Depot, have noticed major trends in the industry and are making every attempt to remain relevant and
adaptable. They face great challenges as more and more office supplies become obsolete due to technology,
and the ability and ease of access of ordering supplies online becomes more and more available versus
having to shop in a physical store. It is often difficult for these organizations to make the online-only switch
because they would lose brand recognition, and they also face steep competition in the online marketplace.
Effective Evaluation System
There are multiple requirements for a strategy to be successful. Strategies must be formed according to
economic factors, meaningfulness, and timeliness; strategies must also clearly articulate an overall image of
what is happening within the organization. It is also recommended that the strategy evaluation be simple and
to the point. When the evaluation becomes complex, it enhances confusion and frustration among the
participants. As stated earlier, it is imperative that the organization creates a contingency plan that identifies
alternative plans in the event that the strategy does not move forward in the direction that was expected.
Contingency plans include avoidance of profit losses, how to meet higher demand, and technology
advancements.
Reference
David, F. R., David, F. R., & David, M. E. (2020). Strategic management: A competitive advantage approach,
concepts and cases (17th ed.). Pearson.
Suggested Unit Resources
In order to access the following resources, click the links below.
The chapter presentation below will provide you with additional information on this unit’s concepts.
Access the Chapter 9 Presentation.
Access the PDF version of the Chapter 9 Presentation.
In the Unit VI Project, you will be completing a SWOT analysis. Access the Mind Tools website, select the
search icon, and search for “SWOT analysis.” This will provide you with additional information on how to
complete this task, including a helpful video and specific questions to answer for each category of the SWOT
analysis.
