Question

Strategic Control and Operational Control

07 Aug 2026
Answer :
Word Count : 1336
# Strategic Control and Operational Control In strategic management, control is an essential function that ensures that organisational activities are moving in the desired direction and that resources are being used effectively. Planning determines what an organisation intends to achieve, while control determines whether actual performance is consistent with planned objectives. Control helps managers identify deviations, understand their causes, and take corrective action. Two important forms of control in an organisation are strategic control and operational control. Although both aim to improve organisational performance, they differ significantly in terms of purpose, time horizon, scope, responsibility, and methods of evaluation. Strategic control refers to the process of monitoring and evaluating the implementation of an organisation’s strategy to determine whether the strategy remains appropriate and whether it is producing the desired results. Strategic management operates in an uncertain and changing environment. Changes in technology, customer preferences, competition, government regulations, economic conditions, and social trends may make an existing strategy less effective. Strategic control therefore enables top management to assess not only whether organisational objectives are being achieved but also whether the underlying strategy continues to be suitable. The major purpose of strategic control is to ensure that the organisation remains aligned with its long-term goals and external environment. It provides management with information about changes that may affect the success of the chosen strategy. For example, a company that has adopted a strategy of selling products through physical stores may need to reconsider its strategy if consumers increasingly prefer online shopping. Strategic control helps management identify such changes and modify strategic plans when necessary. Strategic control generally has a long-term orientation. It is concerned with the overall direction and future position of the organisation rather than with routine daily activities. Senior managers and top executives are primarily responsible for strategic control because they possess the authority and knowledge required to evaluate major organisational strategies. The scope of strategic control is broad because it may cover the entire organisation, including markets, products, technology, finance, human resources, and competitive position. Several techniques are used for strategic control. One important technique is the comparison of actual performance with strategic objectives. Managers may examine indicators such as market share, sales growth, profitability, customer satisfaction, competitive position, and return on investment. Environmental scanning is another important method because it helps organisations monitor external opportunities and threats. Strategic audits can also be conducted to evaluate whether different aspects of the strategy are being implemented effectively. Benchmarking allows organisations to compare their performance with competitors or industry standards. Balanced scorecards may also be used to assess performance from financial, customer, internal-process, and learning-and-growth perspectives. Strategic control is closely connected with
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