DSpace at Khazar University
DSpace at Khazar University
DSpace at Khazar University
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importantly, corrective actions strengthen an organiz<strong>at</strong>ion's competitive position in its<br />
basic industry. Continuous str<strong>at</strong>egy evalu<strong>at</strong>ion keeps str<strong>at</strong>egists close to the pulse of an<br />
organiz<strong>at</strong>ion and provides inform<strong>at</strong>ion needed for an effective str<strong>at</strong>egic-management<br />
system. Carter Byles describes the benefits of str<strong>at</strong>egy evalu<strong>at</strong>ion as follows:<br />
Evalu<strong>at</strong>ion activities may renew confidence in the current business str<strong>at</strong>egy or<br />
point out the need for actions to correct some weaknesses, such as erosion of product<br />
superiority or technological edge. In many cases, the benefits of str<strong>at</strong>egy evalu<strong>at</strong>ion are<br />
much more far-reaching, for the outcome of the process may be a fundamentally new<br />
str<strong>at</strong>egy th<strong>at</strong> will lead, even in a business th<strong>at</strong> is already turning a respectable profit, to<br />
substantially increased earnings. It is this possibility th<strong>at</strong> justifies str<strong>at</strong>egy evalu<strong>at</strong>ion,<br />
for the payoff can be very large.<br />
2-6-2. Published sources of str<strong>at</strong>egy evalu<strong>at</strong>ion inform<strong>at</strong>ion<br />
A number of public<strong>at</strong>ions are helpful in evalu<strong>at</strong>ing a firm's str<strong>at</strong>egies. For<br />
example, in May and June issue each year, Fortune identifies and evalu<strong>at</strong>es the Fortune<br />
1,000 (the largest manufactures) and the Fortune 50 (the largest retailers, transport<strong>at</strong>ion<br />
companies, utilities, banks, insurance companies, and diversified financial corpor<strong>at</strong>ions<br />
in the United St<strong>at</strong>es). In these issues, fortune also ranks the best and worst performers<br />
on various factors such as return on investment, sales volume, and profitability.<br />
In its January issue each year, Fortune evalu<strong>at</strong>es organiz<strong>at</strong>ions in twenty-five<br />
industries. Eight key <strong>at</strong>tributes serve as evalu<strong>at</strong>ive criteria: quality of management;<br />
innov<strong>at</strong>iveness; quality of products or services; long-terms investment value; financial<br />
soundness; community and environmental responsibility; ability to <strong>at</strong>tract, develop, and<br />
keep talented people; and use of corpor<strong>at</strong>e assets, Fortune's 1993 evalu<strong>at</strong>ion reveals the<br />
following firms to be best in the respective industries.<br />
2-6-3. Characteristic of an effective evalu<strong>at</strong>ion system<br />
Str<strong>at</strong>egy evalu<strong>at</strong>ion must meet several basic requirements to be just as bad as too<br />
little inform<strong>at</strong>ion, and too many controls can do more harm than good. Str<strong>at</strong>egy –<br />
evalu<strong>at</strong>ion activities also should be meaningful; they should specifically rel<strong>at</strong>e to a<br />
firm's objectives. They should provide managers with useful inform<strong>at</strong>ion about tasks<br />
over which they have control and influence. Str<strong>at</strong>egy-evalu<strong>at</strong>ion activities should<br />
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