Strategy Evaluation Encourages an Organization Term Paper

However, strategy should not be considered to be static. Strategy continually evolves in response to changes in the business environment and within the organization itself. Strategy evaluation serves the dual purpose of closing the door on the old strategy and beginning the formulation process anew. This is how strategy evaluation becomes proactive, by kick starting the next round of formulation and implementation. By conducting strategy evaluation, the organization takes the onus upon itself to start the cycle, which is proactive.

Another reason to question the validity of this comment is that strategy evaluation is not the only tool by which an organization can take a proactive stance. The evaluation process itself, for example, does not imply action. A company may have the raw information needed to conduct proactive decision-making, but there must be an action step included in the methodology.Moreover, a company can be proactive without evaluating its strategy. It can make smaller decisions based on smaller analyses that anticipate changes in the environment but do not include a total evaluation.

Ultimately, strategy evaluation is one tool that gives an organization the opportunity to be proactive by providing insight. It is not proactive in the sense that it follows the implementation, but it is proactive in the sense that strategy should be viewed as a continuous cycle, rather than a one-off event. Evaluation is the first step in the next round of formulation and implementation. Therefore, the statement that strategy allows an organization to take a proactive stance is a valid statement, if the organization is using strategy evaluation to its fullest potential......