Question

Why is it necessary to regularly evaluate business strategy? (150 Words)

Answer 1

Strategy evaluation is the final stage of strategic management process. This stage is performed after strategy implementation stage where the strategic plan is executed which This involve designing the organizational structure, allocating resources, taking proper decision and managing the human resources effectively.

Strategy evaluation involve appraising both the internal and external factors, performance measurement and taking necessary steps to make corrections. Strategy evaluation is important component of strategic management because: -

• It help the business to evaluate the efficiency and effectiveness of business strategies and whether its implementation is making the business to accomplish the strategic objectives.
• It helps in identifying the corrective actions that is important to the success of the organization.

It is important to regularly evaluate business strategy because different business require different strategies based on internal and external factors. Business environment is uncertain and challenging, hence strategic planning is a dynamic process which adapt as per the changing situations. Strategic planning create a performance culture by establishing targets that can be measured, controlled and monitored. So, it is important to regularly evaluate business strategy.