Strategy Evaluation

Strategy Evaluation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Evaluate the value of clear purpose, vision, mission and objectives in setting strategic
direction of organization and explain with examples and views from the selected organization
.....................................................................................................................................................4
Assess the competitive advantage through vrio analysis of company. ......................................5
Using PESTLE framework analyse external environment of business. ....................................7
Porter's five forces model of organization..................................................................................9
Based on the analysis review the organization strategy. ..........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategy evaluation refers to the whole management process which is done to evaluate
complete strategic plan and assess our performance that how well we have performed in
achieving our objectives through our strategies. There are two levels in which it operates;
strategic level and operational level. Through strategic evaluation process the whole management
ensures that each strategy is adopted properly and goals are achieved. All managers chose the
best strategy among all strategies that will help them in achieving their goals. The below report
includes evaluation of value of clear pupose, vision, mission and objectives for setting strategic
direction of organizations, accessing the competitive advantage by using vrio analysis, pestle
analysis, porter five forces model and review of whole organization strategy on the analysis. The
below is about McKinsey and company. It is a top american management consultancy firm
which was founded in 1926 by chicago professor James O. McKinsey. (Punt and et.al, 2016)
MAIN BODY
Evaluate the value of clear purpose, vision, mission and objectives in setting strategic direction
of organization and explain with examples and views from the selected organization
For an organization proper strategic direction is very much important. Strategic
management can be assessed properly if organization pupose, vision, mission and goals are clear
to whole management team.
 Vision:- It refers to the concept of what the organiztaion wants to achieve in
future. Every organization have a clear vision so that managemnt team also perform well
to achieve those future goals. The strategic direction can only lead to success if vision is
clear in mangement. There should not be two or more visions. In an organization
management team should have a clear vision and it should be only one. (Carruthers and
Hordyk, 2019) When a company has a clear vision; clear motivation is there for all
employees and commitment is made by each employee because they are clear about what
they want to achieve. When a company forms certain strategies; sometimes a difficult
situation occurs regarding to make a decision to chose best strategy so in case of that if
vision is clear then it will be easy for them also to chose best one. In case of McKinsey
company, identifying clear value played an important role for management team.

According to a research, the first role of organization was to create a value of what they
want to achieve and what qualities will be required to achieve that goal. According to
company, their initial role was to set value and match the talent which will relate to that
particular goal.
 Purpose:- It refers to the concept of how an organization will provide impact to
customers. A business should have a clear purpose so that management can focus on
what they are doing, what plans and strategies they make for better future of organization
and when a clear purpose is there in from of team then their targets are also clear and
proper strategies are made. In case of McKinsey company, they defined their purpose in a
clear manner. They considered five elements to establish a clear purpose of their
organization; People and culture, Portfolio strategy and products, process and system,
position and engagement and performance metrics. In case of people and culture, the
company chose clear talent in context with clear purpose. If a organization has clear
purpose but they don't have a specific talented individuals then their pupose would not be
completed.(Thorpe and De Oliveira, 2019) So, McKinseycompany made sure that
people and culture should be matched with each other. In case of Portfolio and strategy,
the company defined how to set clear purpose and where it should be applied. In case of
process and systems, as the company set their clear purpose so they ensured that to
accomplish that purpose they followed a proper process. In case of performance metrics,
by defining clear purpose, they measured their firm performance also. In case of position
and engagement, they revised tehir external positions in context with their clear purpose.
 Mission:- It refers to the concept of what the business wants to achieve and
existing state of organization regarding what they are doing and how they are doing.
When a company defines a clear purpose they need to develop their clear mission also.
Every organization has some specific goals so it should be clear as it is very important for
the organization because clear mission leads to success of company as all individuals
working in company focus on that particular mission only. In case of McKinsey
company, they set their mission and due to that they were the leading consulting firms