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According to your textbook, the strategy-evaluation process consists of three basic activities: 1. Examine the underlying bases of a firm''s strategy. 2. Compare expected results with actual results. 3. Take corrective actions to ensure that performance conforms to plan. Answer the following questions: Which of the three strategy-evaluation activities do you think is most critical to be performed well? Why?

Strategy evaluation is essential for any organization to ensure that its objectives are achieved. Timely evaluation of the strategies can help the management team to deal with potential or actual threat prior the situation becomes more critical. The strategy evaluation incorporates three steps, viz; i) examining the bases of organizational strategy, ii) Comparing the expected with the actual output, iii) taking appropriate actions for putting action according to plans. However, it is quite difficult to determine which of these three strategy evaluation activities is most important. Selecting the most important strategy evaluation activity highly depends on the size, management philosophy, and industry type of the organization (Punt, Butterworth, de Moor, De Oliveira, & Haddon, 2016)). 

The second strategy evaluation activity can be said as important and needs to be performed well, irrespective of the organizational type. It focuses on measuring and evaluating the organizational performance by comparing the expected results with the actual results. Apart from this, the activity includes investigation of any deviation from the proposed plan, evaluation of individual performance, and determining the actual progress towards meeting the objective. While determining these criterion, both long-term as well as annual objectives are considered. Organizations should be aware of the fact that the criteria used in this process should be verifiable and measurable. For this evaluation activity, accurate forecasting is more important than emphasizing on the past records (Wheelen, Hunger, Hoffman, & Bamford, 2017).

Evaluating organizational performance is important because it further signals the organization for implementing the required corrective actions. This activity further determines the factors associated with failure to achieve satisfactory progress. There could be many factors, viz., unexpected economy turns, unreasonable policies, ineffective strategies, and unreliable distributors or suppliers. Thus, performing the second activity well can help in planning effective strategical base (first activity) and implementing corrective measures as well as appropriate actions (third activity). 

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