Strategic Survillance. 4r1a4y

 Strategic Survillance.

 Special Alert Control.

• Introduction • Strategic control is an essential step in strategic mgt. Strategic Evolution and control is the process of determining the effectiveness of on executed strategy in achieving the desired goals and objectives , and taking corrective action whenever required.

• Meaning of control

• Control consist of making something happen the way it was planned to happen.

• Definition • Control consist in ing whether everything occurs conformity with plan adopted the instructions issued & principles established.

The four four basic basic type type of of strategic strategic control control are: are: The

Premise control control Premise

Implementation Implementation control control

Strategic Strategic surveillance surveillance

Special alert alert Special control control

Strategic Surveillance • By their nature, premise control and implementation control are focused control.

• The third type of strategic control, strategic surveillance, is designed to monitor a broad range of events and outside the company that are likely to threaten the course of the firm’s strategy.

• The basic idea behind strategic surveillance is that some form of general monitoring of multiple information sources should be encouraged, with the specific intent being the opportunity to uncover important yet unanticipated information. • Strategic surveillance must be kept unfocused as much as possible and should be designed as a loose “environmental-scanning” activity.

• Trade magazines, The Wall Street Journal, trade conferences, conversations, and intended and unintended observations are all sources of strategic surveillance. • While strategic surveillance is loose, its important purpose is to provide an ongoing, broad – based vigilance in all daily operations so as to information that may prove relevant to the firm’s strategy.

Special Alert Control • Another type of strategic control, really a subset of the other three, is special alert control. • A special alert control is the need to thoroughly, and often rapidly, reconsider the firm’s basic strategy based on a sudden, unexpected event.

• A political coup in the Middle East, an outside firm suddenly acquiring a leading competitor, an unexpected product difficulty like Tylenol’s experience with poisoned capsules --- all of there represent sudden changes that can drastically alter the company’s strategy.

• Such an occurrence should trigger an immediate and intense reassessment of the company’s strategy and its current strategic situation. • Many firms have developed crisis teams to handle initial response and coordination when faced with unforeseen occurrences that may have an immediate effect on the firm’s strategy.

OVERVIEW OF FOUR TYPES OF STRATEGIC CONTROL Basic characteristics

Premise control

Implement ation control

Strategic surveillance

Special alerts

Objectives of controls

Planning premises and projection

Strategic thrusts and milestones

Potential threats and opportunities related the strategy

Occurrence of recognizable but unlikely events

Degree of focusing

High

High

Low

High

Formalization

Medium

High

Low

High

Centralization

Low

Medium

Low

High

Environmental Factors

Yes

Seldom

Yes

Yes

Industry factors

Yes

Seldom

Yes

Yes

Strategy-specific factors

No

Yes

Seldom

Yes

Company-specific factors

No

Yes

Seldom

Seldom

Data acquisition

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