SECTION – B : STRATEGIC MANAGEMENT

QUESTIONS

1. State with reasons which of the following statements are correct/incorrect:

(a) Managers must list and analyse all environmental influences for proper strategic
understanding.
(b) Business function free of external forces influencing it.
(c) Liquidation is the last resort option for a business organisation.
(d) Porter’s five forces model considers new entrants as a significant source of
competition.
(e) Strategic actions are always in reaction to the changes in environment.
(f) A core competence is a unique strength of an organization which may not be shared
by others.
(g) Human resource management aids in strategic management.
(h) Reengineering involves slow and gradual improvement in the existing work
processes that occur over a period of time.
2. Write short notes on:
(a) Retrenchment strategy.
(b) Marketing.
(c) Strategic vision
(d) Augmented marketing.
(e) Industry
(f) SWOT analysis
(g) Business process reengineering
(h) Value chain
3. Distinguish between:
(a) Strategy formulation and Strategy implementation.
(b) Forward and backward integration.
4. Briefly answer any two of the following:
(a) Define T.Q.M.
(b) What is Kieretsus?
(c) What do you understand by ethnic mix?
(d) What do you understand by the term benchmarking?

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5. Explain the need for a business organization to scan the environment on a continuous
basis. Discuss the contemporary developments in the business environment.
6. What are acquisitions? Discuss with example of two companies?
7. Discuss General Electric Model of analysing business portfolio
8. What is marketing Mix? A company launches a new brand of ice creams. It keeps prices
much below the prices of similar ice creams that are already in the market. Choose the
pricing strategy that is probably being used by the company.
9. What is a Corporate Strategy? How organisations can deal with strategic uncertainty?
10. What do you understand by strategic leadership? Discuss the two approaches to
strategic leadership?
11. Discuss major steps in implementing supply chain management systems in an business
organization.
12. What are functional strategies? Why are they needed?
13. Briefly describe the generic strategic alternatives given by Glueck and Jauch.
14. Civil Aviation Brain Technologies Ltd (CABT) is a software development company
supporting requirement of aviation sector. The company was established more than a
decade ago by Rohit Kapoor having experience of working in Silicon Valley. His
entrepreneurial desires brought him back to India to promote this company. Started then
with a paltry capital of Rs. 3 lakhs, the company, at present, enjoys a valuation of more
than 18 crores. Almost everybody acknowledged the competency of CABT in developing
customised software for the sector.
The high growth of the company was mainly on account of the heavy inflows of the
capital in the sector from various rich business houses that have diversified into aviation.
However, CABT saw stagnation in last three years. The order position was dwindling.
The margins were also reducing. Last one year was particularly bad for the CABT and its
annual sales reduced by 15 % for the first time since its inception.
Most of the business houses that had entered in the aviation sector, had little prior
experience in the industry. However, their desire to diversify and seeing opportunity in
the newly opened sector prompted them to invest heavily into the sector.
However, things did not turn out to be as expected. The tough competition between
several players, reduction in the fare by railways and high prices of aviation fuel created
problems for the industry. The sector was not able to generate reasonable profits thus
resulting difficulty in maintaining operations. They were in need for hard to come by
capital. Lately, the sector is witnessing some consolidation with companies planning for
mergers or even contemplating closures.

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 The general global recession also resulted in the reduction of travel expenditure of
corporates resulting in decrease in the order position of CABT.
(a) Discuss the nature of diversification by the business houses entering into aviation
sector.
(b) Discuss the importance of remaining in the area of expertise for the business
houses.
(c) What went wrong in the aviation sector?
(d) Is it appropriate for CABT to remain in the software development for aviation sector
alone?
(e) What are the options available for Rohit Kapoor?

SUGGESTED ANSWERS/HINTS

1. (a) Incorrect: The environment encapsulates many different influences. The difficulty is
in making sense of this diversity in a way which can contribute to strategic decision-
making. Listing all conceivable environmental influences may be possible, but it may
not be of much use.
(b) Incorrect: Businesses function within their relevant environment and have to
negotiate their way through it. The extent to which the business thrives depends on
the manner in which it interacts with its environment. A business which continually
remains passive to the relevant changes in the environment is destined to gradually
decline.
(c) Correct: Liquidation as a form of retrenchment strategy is considered as the most
extreme and unattractive. It involves closing down a firm and selling its assets. It is
considered as the last resort because it leads to serious consequences such as loss
of employment for workers and other employees, termination of opportunities a firm
could pursue, and the stigma of failure. The company management, government,
banks and financial institutions, trade unions, suppliers, creditors, and other
agencies are extremely reluctant to take a decision, or ask, for liquidation.
(d) Correct: Porter’s five forces model considers new entrants as major source of
competition. The new capacity and product range that the new entrants bring in
throw up new competitive pressure. The bigger the new entrant, the more severe
the competitive effect. New entrants also place a limit on prices and affect the
profitability of existing players.
(e) Incorrect: Strategic actions are typically a blend of (1) proactive actions on the part
of managers to improve the company's market position and financial performance
and (2) as needed reactions to unanticipated developments and fresh market
conditions and developments.

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 (f) Correct: A core competence is a unique strength of an organization which may not
be shared by others. If business is organized on the basis of core competence, it is
likely to generate competitive advantage. A core competence provides potential
access to a wide variety of markets. Core competencies should be such that it is
difficult for competitors to imitate them.
(g) Correct: The human resource management helps the organization to effectively
deal with the external environmental challenges. The function has been accepted as
a partner in the formulation of organization’s strategies and in the implementation of
such strategies through human resource planning, employment, training, appraisal
and rewarding of personnel.
(h) Incorrect: Reengineering does not involve slow and gradual improvement in the
existing work processes. It is a revolutionary approach towards radical and total
redesigning of the business processes.
2. (a) Retrenchment or retreat becomes necessary or expedient for coping with
particularly hostile and adverse situations in the environment. A business
organization can redefine its business by divesting a major product line or market.
Retreat is not always a bad proposition to save the enterprise's vital interests, to
minimise the adverse effects, or even to regroup and recoup the resources.
(b) Ordinary marketing is an activity performed by business organizations. In the
present day for business, it is considered to be the activities related to identifying
the needs of customers and taking such actions to satisfy them in return of some
consideration. The term marketing constitutes different processes, functions,
exchanges and activities that create perceived value by satisfying needs of
individuals.
(c) A strategic vision delineates organisation’s aspirations for the business, providing a
panoramic view of the position where the organisation is going. A strategic vision
points an organization in a particular direction, charts a strategic path for it to follow
in preparing for the future, and moulds organizational identity. A Strategic vision is a
road map of a company’s future – providing specifics about technology and
customer focus, the geographic and product markets to be pursued, the capabilities
it plans to develop, and the kind of company that management is trying to create.
(d) Augmented marketing refers to deliberate and accelerated efforts to get better
marketing returns through additional means. It includes provision of additional
customer services and benefits built around the care and actual products that relate
to introduction of hi-tech services like movies on demand, on-line computer repair
services, secretarial services, etc. Such innovative offerings provide a set of
benefits that promise to elevate customer service to unprecedented levels.
(e) Industry is a consortium of firms whose products or services have homogenous
attributes or are close substitutes such that they compete for the same buyer. For
example, all paper manufacturers constitute the paper industry.

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 (f) SWOT analysis is a tool used by organizations for evolving strategic options for the
future. The term SWOT refers to the analysis of strength, weaknesses, opportunities
and threats facing a company. Strengths and weaknesses are identified in the
internal environment, whereas opportunities and threats are located in the external
environment.
Strength: Strength is an inherent capability of the organization which it can use to
gain strategic advantage over its competitor.
Weakness: A weakness is an inherent limitation or constraint of the organisation
which creates strategic disadvantage to it.
Opportunity: An opportunity is a favourable condition in the external environment
which enables it to strengthen its position.
Threat: An unfavourable condition in the external environment which causes a risk
for, or damage to the organisation’s position.
(g) Business process reengineering refers to the analysis and redesign of workflows
both within and between the organisation and the external entities. Its objective is
to improve performance in terms of time, cost, quality, and responsiveness to
customers. It implies giving up old practices and adopting the improved ones. It is
an effective tool of realising new strategies.
Improving business processes is paramount for businesses to stay competitive in
today’s marketplace. New technologies are rapidly bringing new capabilities to
businesses, thereby raising the strategical options and the need to improve
business processes dramatically. Even the competition has become harder. In
today’s market place, major changes are required to just stay even. It has become a
matter of survival for most companies.
(h) Value chains facilitates procurement of whole range of inputs that are required to
produce a product or service so that the process can be performed in an integrated
and optimum manner. Vendors, transporters, and buyers are the components of the
value chain and share the benefits of such chains.
Value chain recognises organisations as more than a random collection of
machines, money and people. These resources are of no value unless deployed
into activities and organised into routines and systems which ensure that products
or services are produced which are valued by the final consumer/user.
3. (a) Distinction between strategy formulation and strategy implementation: Although
inextricably linked, strategy implementation is fundamentally different from strategy
formulation in the following ways:
(i) Strategy formulation is positioning forces before the action. Strategy
implementation is managing forces during the action.
(ii) Strategy formulation focuses on effectiveness whereas strategy
implementation focuses on efficiency.

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 (iii) Strategy formulation is primarily an intellectual process whereas
implementation of strategy is primarily an operational process.
(iv) Strategy formulation requires good intuitive and analytical skills while strategy
implementation requires special motivation and leadership skills.
(v) Strategy formulation requires coordination among a few individuals while
strategy implementation requires organization wide coordination.
(b) Forward and backward integration forms part of vertically integrated diversification.
In vertically integrated diversification, firms opt to engage in businesses that are
vertically related to the existing business of the firm. The firm remains vertically
within the same process. While diversifying firms opt to engage in businesses that
are linked forward or backward in the chain and enters specific product/process
steps with the intention of making them into new businesses for the firm.
Backward integration is a step towards, creation of effective supply by entering
business of input providers. Strategy employed to expand profits and gain greater
control over production of a product whereby a company will purchase or build a
business that will increase its own supply capability or lessen its cost of production.
While forward integration is moving forward in the value chain and entering
business lines that use existing products.
4. (a) Total Quality Management: TQM or Total Quality Management is a people-focused
management system that aims at continual increase in customer satisfaction at
continually lower real cost. There is a sustained management commitment to
quality and everyone in the organisation and the supply chain is responsible for
preventing rather than detecting defects.
TQM is a total system approach (not a separate area or program) and an integral
part of high-level strategy. It works horizontally across functions and departments,
involves all employees, top to bottom, and extends backward and forward to include
the supply chain and the customer chain. TQM stresses learning and adaptation to
continual change as keys to organizational success.
(b) Kieretsus is a loosely-coupled group of companies, usually in related industries. It is
a Japanese term which is used for large cooperative networks of businesses.
Kieretsus members are peers and may own significant amounts of each other's
stock and have many board members in common.
(c) Ethnic mix reflects the changes in the ethnic make-up of a population and has
implications both for a company's potential customers and for the workforce. Issues
that should be addressed include:
 What do changes in the ethnic mix of the population imply for product and
service design and delivery?
 Will new products and services be demanded or can existing ones be
modified?

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  Managers prepared to manage a more culturally diverse workforce?
How can the company position itself to take advantage of increased workforce
heterogeneity?
(d) Benchmarking helps in improving performance by learning from best practices and
the processes by which they are achieved. In simple words, benchmarking is an
approach of setting goals and measuring productivity based on best industry
practices. It developed out of need to have information against which performances
can be measured.
5. Refer to Chapter 1. Environmental analysis helps strategists to develop an early warning
system to prevent threats or to develop strategies which can turn a threat to the firm's
advantage. Because of the difficulty in assessing the future and its dynamism, all future
events can not be anticipated. However, some future events can be and are anticipated.
The extent to which a few or more events are anticipated through the process of the
analysis and diagnosis, will reflect in the quality of managerial decisions. The managers
can also concentrate on a few major events, instead of dealing with all the environmental
influences. In general, environmental analysis has three basic goals as follows:
1. The analysis should provide an understanding of current and potential changes
taking place in the environment.
2. Environmental analysis should provide inputs for strategic decision making.
3. Environment analysis should facilitate and foster strategic thinking in organizations-
typically a rich source of ideas and understanding of the context within which a firm
operates.
A lot of changes are occurring within India and across the globe affecting the business.
Students should list out different elements of macro environment and discuss the
contemporary developments in each of the area. They may develop their answers to
cover different elements of environment.
For example in the economic environment, students may briefly list out the impact of the
global recession on the Indian Business. They may list different factors such as difficulty
in financing through primary market, inflation, low demand in certain sectors such as real
estate etc. As far as social environment is concerned a new culture is evolving in the
country on account of increased global interaction and impact of mass media. There is
also increase in awareness. The developments in the legal environment including
introduction of new direct tax code, limited liability partnership, GST, etc. have their own
bearing on the business.
6. Refer to Chapter 2. Acquisition of or merger with an existing concern is an instant means
of achieving the expansion. It is an attractive and tempting proposition in the sense that it
circumvents the time, risks and skills involved in screening internal growth opportunities,
seizing them and building up the necessary resource base required to materialise growth.
Organizations consider merger and acquisition proposals in a systematic manner, so that
the marriage will be mutually beneficial, a happy and lasting affair.

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 Apart from the urge to grow, acquisitions and mergers are resorted to for purposes of
achieving a measure of synergy between the parent and the acquired enterprises.
Synergy may result from such bases as physical facilities, technical and managerial
skills, distribution channels, general administration, research and development and so
on. Only positive synergistic effects are relevant in this connection which denote that the
positive effects of the merged resources are greater than the some of the effects of the
individual resources before merger or acquisition.
Students may give two examples from the industry. Some of the recent / popular
instances of acquisition are listed below:
 Tata’s acquisition of Anglo Dutch steelmaker Corus
 Tata’s acquisition of British Jaguar Land Rover
 Mittal Steel’s takeover of Arcelor
 HPCL’s acquisition of Kenya Petroleum Refinery Ltd.
 Hindalco’s acquisition Canada based Novelis.
7. Refer to chapter 3. Portfolio analysis is a tool by which management identifies and
evaluates the various businesses that make up the company. In portfolio analyses top
management views its product lines and business units as a series of investments from
which it expects returns. The General Electric Model uses two factors in a matrix / grid
situation as shown below:
Business Position
High Medium Low

High Invest Invest Protect

Attractiveness
Market

Medium Invest Protect Harvest

Low Protect Harvest Divest

8. Refer to Chapter 5. Marketing mix forms an important part of overall competitive

marketing strategy. The marketing mix is the set of controllable marketing variables that
the firm blends to produce the response it wants in the target market. The marketing mix
consists of everything that the firm can do to influence the demand for its product. These
variables are often referred to as the “4 Ps.” The 4 Ps stand for product, price, place and
promotion. An effective marketing program blends all of the marketing mix elements into
a coordinated program designed to achieve the company’s marketing objectives by
delivering value to consumers.
A company trying to keep the prices of new brand of ice creams too low is trying to
penetrate the market. In penetration prices are initially kept at relatively low levels. This
is done to attract customers. It is expected that the price sensitive customers will switch

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 to the new brand because of the lower price. The strategy helps in increasing market
share or sales volume.
9. Refer to chapter 4. We can describe corporate strategy as the objective-strategy design
of the firm. To arrive at such an objective-strategy design is the basic burden of
corporate strategy formulation. Strategic uncertainty, uncertainty that has strategic
implications, is a key construct in strategy formulation. A typical external analysis will
emerge with dozens of strategic uncertainties. To be manageable, they need to be
grouped into logical clusters or themes. It is then useful to assess the importance of each
cluster in order to set priorities with respect to Information gathering and analysis.
10. Strategic leadership is the ability of influencing others to voluntarily make decisions that
enhance prospects for the organisation’s long-term success while maintaining short-term
financial stability. It includes determining the firm’s strategic direction, aligning the firm’s
strategy with its culture, modelling and communicating high ethical standards, and
initiating changes in the firm’s strategy, when necessary. Strategic leadership sets the
firm’s direction by developing and communicating a vision of future and inspire
organization members to move in that direction. Unlike strategic leadership, managerial
leadership is generally concerned with the short-term, day-to-day activities.
Two basic approaches to leadership can be transformational leadership style and
transactional leadership style.
Transformational leadership style use charisma and enthusiasm to inspire people to exert
them for the good of the organization. Transformational leadership style may be
appropriate in turbulent environments, in industries at the very start or end of their life-
cycles, in poorly performing organizations when there is a need to inspire a company to
embrace major changes. Transformational leaders offer excitement, vision, intellectual
stimulation and personal satisfaction. They inspire involvement in a mission, giving
followers a ‘dream’ or ‘vision’ of a higher calling so as to elicit more dramatic changes in
organizational performance. Such a leadership motivates followers to do more than
originally affected to do by stretching their abilities and increasing their self-confidence,
and also promote innovation throughout the organization.
Whereas, transactional leadership style focus more on designing systems and controlling
the organization’s activities and are more likely to be associated with improving the
current situation. Transactional leaders try to build on the existing culture and enhance
current practices. Transactional leadership style uses the authority of its office to
exchange rewards, such as pay and status. They prefer a more formalized approach to
motivation, setting clear goals with explicit rewards or penalties for achievement or non-
achievement.
Transactional leadership style may be appropriate in settled environment, in growing or
mature industries, and in organizations that are performing well. The style is better suited
in persuading people to work efficiently and run operations smoothly.
11. Refer to chapter 5. Successful implementing supply management systems requires a
change from managing individual functions to integrating activities into key supply chain

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 processes. It involves collaborative work between buyers and suppliers, joint product
development, common systems and shared information. A key requirement for
successfully implementing supply chain will be network of information sharing and
management. The partners need to link together to share information through electronic
data interchange and take decisions in timely manner.
Implementing and successfully running supply chain management system will involve:
1. Product development
2. Procurement
3. Manufacturing
4. Physical distribution
5. Outsourcing
6. Customer services
7. Performance measurement
12. Refer to chapter 5. Strategists are required to provide direction to functional managers
regarding the plans and policies to be adopted. In fact, the effectiveness of strategic
management depends critically on the manner in which strategies are implemented.
Functional area strategy such as marketing, financial, production and human resource
are based on the functional capabilities of an organisation. For each functional area, first
the major sub areas are identified and then follows a discussion of each of these sub
functional areas regarding the content of functional strategies, important factors, and
their importance in the process of strategy implementation.
Major strategies need to be translated to lower levels to give holistic strategic direction to
an organization. The reasons why functional strategies are needed can be enumerated
as follows:
 The development of functional strategies is aimed at making the strategies-
formulated at the top management level-practically feasible at the functional
level.
 Functional strategies assist in flow of strategic decisions to the different parts of
an organization.
 They act as basis for controlling activities in the different functional areas of
business.
 The time spent by functional managers in decision-making is reduced as plans
lay down clearly what is to be done and policies provide the discretionary
framework within which decisions need to be taken.
 Functional strategies help in bringing harmony and coordination as they remain
part of major strategies.
 Similar situations occurring in different functional areas are handled in a
consistent manner by the functional managers.

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13. Refer to Chapter 2. According to William F Glueck and Lawrence R Jauch there are four
generic ways in which strategic alternatives can be considered. These are stability,
expansion, retrenchment and combination strategies.
 Stability strategies
 Expansion Strategy
 Retrenchment Strategy
 Combination Strategies
14. This case is for your practice. Remember, there is no rigid solution to a case problem.
You can arrive at your own solutions. The opinions differ and your approach will also be
different. However, you must offer supporting evidence for your views and judgments.
In part (a), students may write about unrelated conglomerate diversification being
undertaken by business houses. In part (b) discuss the concept of core competency and
its importance. In part (c) some of the problems that have been listed in the case may be
explained. In part (d) discuss the risks involved in catering only to a limited customer.
Lastly, in part (e), discuss in general the options Rohit has in your own opinion.
For answering the questions, you should draw inferences from theoretical concepts of
strategic management and integrate them. You should not rely upon unsupported
opinions and over generalizations and clearly demonstrate that your interpretations are
reasonable, logical and objective. You may also take cues from what you have learnt
from newspapers and other business magazines.

Pre-examination Notes - Strategic Control

Control is one of the important functions of management, though it is often regarded as

the core of the management process. It is a function intended to ensure and make
possible the performance of planned activities and to achieve the pre-determined goals
and results. Control is intended to regulate and check, i.e., to structure and condition the
behaviour of events and people, to place restraints and curbs on undesirable tendencies,
to make people conform to certain norms and standards, to measure progress to keep
the system on track. It is also to ensure that what is planned is translated into results, to
keep a watch on proper use of resources, on safeguarding of assets and so on.
The control function involves monitoring the activity and measuring results against pre-
established standards, analysing and correcting deviations as necessary and
maintaining/adapting the system. The task of control is intended to enable the
organisation to continuously learn from its experience and to improve its capability to
cope with the demands of organisational growth and development.
Control is process within the broader management process. Within any control system,
the following elements are identifiable:
(a) Objectives and characteristics of the system which could be operationalized into
measurable and controllable standards.
(b) A mechanism for monitoring and measuring the characteristics of the system.

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(c) A mechanism (i) for comparing the actual results with reference to the standards (ii)
for detecting deviations from standards and (iii) for learning new insights on
standards themselves.
(d) A mechanism for feeding back corrective and adaptive information and instruction to
the system, for effecting the desired changes to set right the system to keep it on
course.
Primarily there are three types of organizational control, viz., operational control,
management control and strategic control
Operational control
The thrust of operational control is on individual tasks or transactions as against total or
more aggregative management functions. For example, procuring specific items for
inventory is a matter of operational control, in contrast to inventory management as a
whole. One of the tests that can be applied to identify operational control areas is that
there should be a clear-cut and somewhat measurable relationship between inputs and
outputs which could be predetermined or estimated with least uncertainty.
Many of the control systems in organisations are operational and mechanistic in nature.
A set of standards, plans and instructions are formulated. The control activity consists of
regulating the processes within certain ‘tolerances’, irrespective of the effects of external
conditions on the formulated standards, plans and instructions. Some of the examples of
operational controls can be stock control (maintaining stocks between set limits),
production control (manufacturing to set programmes), quality control (keeping product
quality between agreed limits), cost control (maintaining expenditure as per standards),
budgetary control (keeping performance to budget).
Management Control
When compared with operational, management control is more inclusive and more
aggregative, in the sense of embracing the integrated activities of a complete
department, division or even entire organisation, instead or mere narrowly circumscribed
activities of sub-units.
The basic purpose of management control is the achievement of enterprise goals – short
range and long range – in a most effective and efficient manner. The term is defined by
Robert Anthony as ‘the process by which managers assure the resources are obtained
and used effectively and efficiently in the accomplishment of the organisation’s
objectives. Controls are necessary to influence the behaviour of events and ensure that
they conform to plans.
Strategic Control
"Strategic control focuses on the dual questions of whether: (1) the strategy is being
implemented as planned; and (2) the results produced by the strategy are those
intended."
– Schendel and Hofer:

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Strategies once formulated are not immediately implemented. There is time gap between
the stages of strategy formulation and their implementation. Strategies are often affected
on account of changes in internal and external environments of organisations. There is
need for warning systems to track a strategy as it is being implemented. Strategic control
is the process of evaluating strategy as it is formulated and implemented. It is directed
towards identifying problems and changes in premises and making necessary
adjustments.
Type of Strategic Control: There are four types of strategic control as follows:
 Premise control: A strategy is formed on the basis of certain assumptions or
premises about the complex and turbulent organizational environment. Over a
period of time these premises may not remain valid. Premise control is a tool for
systematic and continuous monitoring of the environment to verify the validity and
accuracy of the premises on which the strategy has been built. It primarily involves
monitoring two types of factors:
(i) Environmental factors such as economic (inflation, liquidity, interest rates),
technology, social and regulatory.
(ii) Industry factors such as competitors, suppliers, substitutes.
It is neither feasible nor desirable to control all types of premises in the same
manner. Different premises may require different amount of control. Thus,
managers are required to select those premises that are likely to change and would
severely impact the functioning of the organization and its strategy.
 Strategic surveillance: Contrary to the premise control, the strategic surveillance
is unfocussed. It involves general monitoring of various sources of information to
uncover unanticipated information having a bearing on the organizational strategy. It
involves casual environmental browsing. Reading financial and other newspapers,
business magazines, meetings, conferences, discussions at clubs or parties and so
on can help in strategic surveillance.
Strategic surveillance may be loose form of strategic control, but is capable of
uncovering information relevant to the strategy.
 Special alert control: At times unexpected events may force organizations to
reconsider their strategy. Sudden changes in government, natural calamities,
terrorist attacks, unexpected merger/acquisition by competitors, industrial disasters
and other such events may trigger an immediate and intense review of strategy.
Organizations to cope up with these eventualities, form crisis management teams to
handle the situation.
 Implementation control: Managers implement strategy by converting major plans
into concrete, sequential actions that form incremental steps. Implementation
control is directed towards assessing the need for changes in the overall strategy in
light of unfolding events and results associated with incremental steps and actions.

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Strategic implementation control is not a replacement to operational control.
Strategic implementation control, unlike operational controls continuously monitors
the basic direction of the strategy. The two basis form of implementation control are:
(i) Monitoring strategic thrusts: Monitoring strategic thrusts help managers to
determine whether the overall strategy is progressing as desired or whether
there is need for readjustments.
(ii) Milestone Reviews. All key activities necessary to implement strategy are
segregated in terms of time, events or major resource allocation. It normally
involves a complete reassessment of the strategy. It also assesses the need to
continue or refocus the direction of an organization.

Strategic Surveillance

Premise Control

Special Alert Control

Implementation Control
Strategy Formulation
Strategy Implementation
Time 1 Time 2 Time 3

These four strategic controls steer the organisation and its different sub-systems to
the right track. They help the organisation to negotiate through the turbulent and
complex environment.

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