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    OMBA 231

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    absolute.testinglabs

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    OMBA 231

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    OMBA 231

    Uploaded by

    absolute.testinglabs

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    © All Rights Reserved
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    of 3

    UTTARANCHAL UNIVERSITY

    (Established vide Uttaranchal University Act, 2012, Uttarakhand Act No. 11 of 2013)
    Premnagar-248007, Dehradun, Uttarakhand, INDIA

    ASSIGNMENT COVER PAGE

    VIRENDER KUMAR
    Name of Student:
    JULY 2023
    Batch:
    MBA
    Program:
    OMBA 231 - STRATEGIC MANAGEMENT
    Subject & Code:
    SEMESTER 3
    Semester:
    2315011007
    Learner ID:

    NECESSARY INSTRUCTIONS
    1. Cover Page must be filled in Capital Letters. All Fields of the Form are
    compulsory to be filled.
    2. The assignment should be written / computer typed on A4 size paper and it should be neat
    and clearly readable.
    3. The cover page should be stapled at the front of each and every assignment.
    4. Incomplete Assignments will not be accepted.
    Analyse the importance of conducting regular strategic reviews and audits as part of
    strategy evaluation and control and their role in identifying areas for improvement and
    corrective action.

    Ans:. Evaluation of strategy is that phase of strategic management process in which the top managers determine
    whether their strategic choice as implemented is meeting the objectives of the enterprise. Strategic management
    is a dynamic process, requiring constant evaluation and adaptation to ensure that an organization’s goals and
    objectives are met. One of the most critical components of this process is conducting regular strategic reviews
    and audits. These activities provide organizations with a structured framework for assessing the effectiveness
    of their strategies, identifying areas for improvement, and implementing corrective actions. Regular strategic
    reviews and audits help ensure that the organization stays aligned with its long-term goals, adapts to external
    changes, and efficiently uses its resources.

    Importance of Strategy evaluation:


    1. Activities must be economical.
    2. Strategic Management
    3. Should not provide too much information and provide required information at right time.
    4. Should be done with average control and avoid too many controls.
    5. Activities should specifically relate to a firm’s objectives.
    6. Should be designed to provide a true picture of what is happening.
    7. Process should not dominate strategic decisions, it should foster mutual understanding, trust and
    commonsense.

    The Role of Strategic Reviews in Strategy Evaluation:-


    Strategic reviews are periodic evaluations of the organization's strategy, operations, and performance. They
    typically occur at set intervals, such as quarterly or annually, depending on the size of the organization and
    industry dynamics. The primary purpose of a strategic review is to evaluate how well the current strategy is
    performing and whether it aligns with the organization's mission, vision, and long-term objectives.

    The review process begins with a performance assessment, which compares the organization's actual results to
    its predefined goals and key performance indicators (KPIs). This helps determine whether the organization is
    on the right track to achieving its strategic objectives. By identifying gaps between planned and actual
    performance, strategic reviews provide insight into areas that need improvement.
    In addition, strategic reviews help detect any internal or external factors that may be affecting the organization's
    performance. This may include changes in market conditions, shifts in customer preferences, emerging
    technological trends, or regulatory adjustments. Regular reviews provide an opportunity to reevaluate the
    relevance of the strategy in light of these factors, ensuring that the organisation remains flexible and adaptable
    to changing circumstances.
    The Role of Strategic Audits in Strategy Control
    A strategic audit is a comprehensive evaluation of an organization’s strategic position, operations, and external
    environment. It typically involves assessing various aspects of the organization, such as its strengths,
    weaknesses, opportunities, and threats (SWOT analysis), resources, capabilities, market performance, and
    competitor positioning. Unlike the strategic review, which focuses on performance measurement, the strategic
    audit is more diagnostic and often delves into the root causes of any strategic issues.

    The strategic audit plays a pivotal role in strategy control by ensuring that the strategy is effectively
    implemented and remains aligned with both internal capabilities and external opportunities. A well-conducted
    audit provides senior leadership with the necessary data to make informed decisions regarding strategic
    adjustments or course corrections. For example, if the audit reveals that the organization’s resources are
    underutilized, the leadership team can take corrective action by reallocating resources to areas that offer better
    strategic value.

    Moreover, the strategic audit also helps in assessing the organization’s competitive advantage, market
    positioning, and the overall effectiveness of its strategic choices. By providing a comprehensive picture of the
    organization’s current status, it acts as a control mechanism to ensure that the organization does not stray too
    far from its intended strategic path.

    Identifying Areas for Improvement and Corrective Action


    One of the most critical outcomes of both strategic reviews and audits is the identification of areas for
    improvement. Whether through performance gaps, unanticipated market challenges, or inefficient processes,
    these evaluations highlight where the organization is not performing optimally. For instance, a strategic review
    might uncover that a product line is underperforming in a key market, while a strategic audit may identify
    internal inefficiencies or gaps in technological capabilities that are hindering growth.

    Identifying areas for improvement allows leadership teams to take corrective action. These actions can range
    from refining the current strategy, reallocating resources, modifying business processes, introducing new
    technologies, or enhancing employee training and development. By addressing these issues proactively,
    organizations can prevent minor issues from escalating into significant problems that could derail the overall
    strategy.

    Conclusion:-
    In conclusion, regular strategic reviews and audits are integral components of strategy evaluation and control.
    They provide the organization with the tools necessary to assess its strategic performance, identify areas for
    improvement, and implement corrective actions. By regularly engaging in these activities, organizations not only
    ensure that they remain aligned with their long-term objectives but also maintain the agility to adapt to changes
    in the internal and external environment. These processes are essential for continuous improvement, helping
    organizations to optimize resources, enhance performance, and achieve sustainable competitive advantage.

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