Chapter 13 – Strategic Control
13-1
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a webs ite, in
whole or part.
Questions for Discussion
1. Distinguish between strategic control and operating control. Give an example of each.
2. Select a business whose strategy is familiar to you. Identify what you think are the key
premises of the strategy. Then select the key indicators that you would use to monitor each of
these premises.
Students should be encouraged to select a firm where they have worked in the past or a firm
3. Explain the differences between implementation controls, strategic surveillance, and special
alert controls. Give an example of each.
Implementation control is designed to assess whether the overall strategy should be changed
A special alert control is the thorough, and often rapid, reconsideration of the firm’s strategy,
4. Why are budgets, schedules, and key success factors essential to operations control and
evaluation?
Operations controls provide post-action evaluation and control over short periods –usually
from one month to one year. To be effective, operational control systems must take four steps
common to all post action controls:
Set standards of performance
Chapter 13 – Strategic Control
13-2
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a webs ite, in
whole or part.
In operations control, management’s concern is to compare progress to date with expected
5. What are key considerations in monitoring deviations from performance standards?
Exhibit 13.4 on page 362 illustrates this in fine detail. After deviations and their causes have
6. How is the balanced scorecard related to strategic and operational control?
The balanced scorecard methodology is discussed on pages 363-365 in the text. The balanced
scorecard approach was intended to provide a clear prescription to what companies should
7. Read the first chapter discussion case. How would strategic controls be used to help those
three situations?
8. What is a dashboard?
A dashboard is a user interface that organizes and presents information from multiple digital