Question
Strategic Control and Operational Control
Answer :
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# Strategic Control and Operational Control Control is an important function of strategic management because it helps an organisation determine whether its plans and activities are moving in the desired direction. Planning establishes what an organisation wants to achieve, while control ensures that actual performance remains consistent with planned objectives. In a business organisation, control operates at different levels. Two important forms are strategic control and operational control. Although both are concerned with monitoring performance and taking corrective action, they differ in their scope, time horizon, focus, and methods. Strategic control refers to the process of evaluating whether an organisation’s overall strategies are appropriate and whether they are producing the desired results in a changing business environment. It is concerned with the long-term direction of the organisation. Strategic control does not merely examine whether employees have completed their assigned tasks; rather, it evaluates whether the organisation is pursuing the right strategies to achieve its mission and objectives. It therefore involves continuous assessment of both internal capabilities and external environmental changes. The main purpose of strategic control is to ensure that the organisation remains aligned with its long-term goals. Business environments are dynamic because customer preferences, technology, competition, government regulations, economic conditions, and social trends continuously change. A strategy that was suitable when formulated may become ineffective later. Strategic control enables managers to identify such changes and modify strategies when necessary. For example, a company that has traditionally depended on physical stores may need to reconsider its strategy if consumers increasingly prefer online shopping. Strategic control generally involves several important activities. First, managers establish strategic objectives and performance standards based on the organisation’s mission and long-term plans. These objectives may relate to market share, profitability, growth, customer satisfaction, innovation, competitive position, or expansion into new markets. Second, actual performance is measured through financial and non-financial indicators. Third, managers compare actual results with strategic objectives. Significant deviations are analysed to determine their causes. Finally, corrective measures are taken. These may involve modifying existing strategies, reallocating resources, changing organisational structures, or introducing new products and markets. Strategic control also includes environmental scanning and strategic surveillance. Environmental scanning helps managers monitor developments outside the organisation that may create opportunities or threats. Strategic surveillance is broader because it seeks to identify unexpected events that could influence the effectiveness of the organisation’s strategy. For instance, technological innovation may suddenly make an existing product obsolete. Effective strategic control allows management to respond before the threat seriously affects organisational performance. Another important element is the evaluation of assumptions underlying a strategy. Every strategy is based on certain assumptions concerning customers, competitors, technology, economic conditions, and other factors. Strategic control examines whether these assumptions remain valid. If they change substantially, management may need to reconsider the
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