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Types of Strategic Control

Strategic control focuses on evaluating whether a strategy is being implemented as planned and whether the results are achieving intended goals. There are four types of strategic control: 1) Premise control checks if environmental and industry assumptions remain valid. 2) Implementation control assesses if the strategy should change based on interim results and events. 3) Strategic surveillance monitors internal and external events that could threaten the strategy. 4) Special alert control triggers reevaluation of the strategy due to sudden unexpected events.

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411 views8 pages

Types of Strategic Control

Strategic control focuses on evaluating whether a strategy is being implemented as planned and whether the results are achieving intended goals. There are four types of strategic control: 1) Premise control checks if environmental and industry assumptions remain valid. 2) Implementation control assesses if the strategy should change based on interim results and events. 3) Strategic surveillance monitors internal and external events that could threaten the strategy. 4) Special alert control triggers reevaluation of the strategy due to sudden unexpected events.

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Joju
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© © All Rights Reserved
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TYPES OF STRATEGIC

CONTROL
STRATEGIC CONTROL

• Strategic control focuses on the dual questions of :


(1) whether the strategy is being implemented as planned?
(2) whether the results produced by the strategy are those
intended?
• Strategic control is “the critical evaluation of plans, activities, and
results, thereby providing information for the future action”.
TYPES OF STRATEGIC CONTROL

Premise Control

Implementation Control

Strategic Surveillance

Special Alert Control


1. PREMISE CONTROL

• Premise control has been designed to check systematically and continuously whether or
not the premises set during the planning and implementation processes are still valid.
• Premises are primarily concerned with two types of factors:

1. Environmental factors (for example, inflation, technology, interest rates, regulation,


and demographic/social changes).

2. Industry factors (for example, competitors, suppliers, substitutes, and barriers to


entry).
2. IMPLEMENTATION CONTROL

• “Implementation control is designed to assess whether the


overall strategy should be changed in light of unfolding events
and results associated with incremental steps and actions that
implement the overall strategy.”
3. STRATEGIC SURVEILLANCE

• It is designed to monitor a broad range of events inside and


outside the company that is likely to threaten the course of the
firm’s strategy.
• Strategic surveillance appears to be similar in some way to
“environmental scanning.”
4. SPECIAL ALERT CONTROL

• Special alert controls are the need to thoroughly, and often


rapidly, reconsider the firm’s basic strategy based on a sudden,
unexpected event.
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