Unit VI Project BP&S

BUS 4302, Business Policy & Strategy 1

Course Learning Outcomes for Unit VI Upon completion of this unit, students should be able to:

7. Establish a strategic management follow-up process.

9. Assess the strategy evaluation process. 9.1 Analyze the strategy and mission of a company using a SWOT (strengths, weaknesses,

opportunities, and threats) analysis.

Course/Unit Learning Outcomes

Learning Activity

7 Unit Lesson Chapter 9 Unit VI Project

9.1 Unit Lesson Chapter 9 Unit VI Project

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, Chapter 9 explains how to develop a balanced scorecard and utilize contingency planning. Every strategy must have the ability to be flexible and adaptable. Anytime 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.

UNIT VI STUDY GUIDE Evaluating Strategies

BUS 4302, Business Policy & Strategy 2

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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 U.S. as compared to another part of the U.S.?

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.

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. https://online.vitalsource.com/#/books/9780135203736

BUS 4302, Business Policy & Strategy 3

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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.