BUS 475 Week 5 Discussion Question Worksheet
Reference: David, Fred R. & David, Forest R. (2017). Strategic Management: A Competitive Advantage Approach, Concepts and Cases (16th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
Instructions: Minimum of 125 words for each question with in-text citation and reference
Strategic Management, Ch. 9: Strategy Review, Evaluation, and Control
Why should a strategic plan be continuously monitored and updated?
As a manager how do you ensure your subordinates understand a corrective action is not a negative or a means of discipline?
Why is it important to avoid a “one best way” mentality concerning control systems? What are the consequences of applying the same type of control system to all types of environments?
Premise control is a form of strategic control that entails systematically and continuously checking to determine whether premises upon which the strategy is based are still valid. Every strategy is built upon certain premises; it is important to check to make sure that environmental and industry factors have not changed these factors. I often see premise control come into play at restaurants, particularly in menu strategy. A menu change can introduced more items that did not contain seafood, such as pork chops and new chicken dishes. The premise upon which this strategy was based was that consumers in the restaurant industry are constantly looking for substitutes; people who were not seafood eaters would be more likely to choose our restaurant from other restaurants if given more non-seafood items to choose from. It would not take long for corporate leaders to realize the new menu items were not pulling in new guests and not being prepared perfectly every time, thereby alienating a core audience of seafood lovers who might try them because they were new. In this case premise controls allows a business to realize the idea that non-seafood customers would be attracted to the new menu items was wrong, and they reverted the menu to focus on seafood excellence. While the premise that restaurant industry consumers will choose substitutes that offer what they like may not have been false, its application in this case was certainly misguided and a poor choice of strategy.
Distinguish between strategic control and operating control. Give an example of each.
Watch the “Business Plan” video.
Consider the following as you watch:
What role should the employee play in the monitoring or development of a strategic plan?
Business strategy, as we have learned in this class, is contingent on so many factors, both internal and external. Internal factors are controllable, but external factors are not. Therefore, for a company to be nimble in a changing market, like Shell in the midst of deregulation, they must have plans created and framed out to adjust to the changes. This is also why it is important to consider that final T in the SWOTT analysis; keeping abreast of trends will help a firm know which way they should, or maybe have to, steer their organization for future success.