Strategic Management Report: Analyzing Evaluation Tools in MAN302

This report provides a comprehensive analysis of strategic evaluation tools, specifically focusing on the Balanced Scorecard and the McKinsey 7-S Model, within the context of strategic business management. It begins by introducing the importance of strategic management in today's business environment, emphasizing the role of planning, monitoring, and analysis in achieving organizational goals. The report then delves into the application of the McKinsey 7-S Model, highlighting its seven elements—strategy, structure, systems, staff, skills, style, and shared values—and how these elements can be utilized to assess a company's strategies, particularly in relation to cost reduction and profitability. Furthermore, the report examines the Balanced Scorecard as an integrated framework for analyzing strategies from financial, customer, growth, and internal process perspectives. The report uses the case of Price Waterhouse Cooper (PWC) to illustrate how these tools can be applied to evaluate strategic decisions and improve business performance. The report highlights the importance of aligning strategies with key performance indicators (KPIs) and achieving high brand value, emphasizing the role of skills and staff in achieving future success. The report concludes by referencing key academic sources, providing a solid foundation for understanding the application of strategic evaluation tools in real-world business scenarios.

Strategic Management

STRATEGIC MANAGEMENT 1
Week 12
Evaluation tools
There are many strategic evaluation tools which can be used by the company in order to
evaluate the strategies. Balanced Scorecard and McKisney 7-S Model are the tools which are
used by the companies to evaluate the strategies (Lasserre, 2017). These tools are effective
for the company as discussed below:
McKisney 7-S Model
The model contains the 7 elements which help the company to evaluate the strategies and
these elements are strategy, structure, systems, staff, skills, style, and shared values. As per
the key performance indicator of the company, it has been seen that the main aim of the
company is to reduce the cost and increase the profitability. The company adopts the
strategies in order to reduce the cost. The company can use this tool to analyse the cost
leadership strategy as per the results. PWC also wants to grab the global knowledge to bring
the efficiency to operate smoothly. It has been seen that the organisation structure and staff
are the main elements for the company to operate smooth in the market. McKinsey 7-S is an
appropriate tool which helps to evaluate the organisation structure and staff. Key Results
Area of the company states that the company is improving its operations in way from which it
achieve the high success in the market. It also has been seen that the company has the high
brand value which is evaluated that the company has high effective strategies. In order to
evaluate the effectiveness of the strategies, this tool helps to analyse the skills of the
company. The elements of skills and staff also analyse the methods and strategies which is
used by the company to achieve the success in the future (Mind Tools, 2018).
Balanced Scorecard

STRATEGIC MANAGEMENT 2
Balanced Scorecard is an integrated framework which is used by the company in order to
analyse the strategies. The main focus of this tool is on the different factors of the company
such as financial perspective, customer perspective, growth perspective and internal process
perspective (Balanced Scorecard, 2018). As the key performance indicator of the company, it
is observed that the main aim of the company is to earn the high rate of profit. The company
analyse the profit by evaluating the financial statements. The customer perspective is the
factor due to which the position of the company is analysed in the market. Balances
Scorecard is the tool which evaluates the strategies in the context of the consumer. Consumer
satisfaction, customer retention and market share are the components of consumer
perspective which is evaluated at the time of effectiveness of strategies. The aim of the
company is to develop the strategies to attain the high growth in the market. If the company
attain the high success in the market which reflects that the company use the effective
strategies. The key results area of the company also reflect that the company have the
effective strategies.

STRATEGIC MANAGEMENT 3
References
Balanced Scorecard. (2018) Balanced Scorecard Basics. [online] Available from:
https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard [Accessed
9/2/19].
Lasserre, P. (2017) Global strategic management. Macmillan International Higher Education
Mind Tools. (2018) The McKinsey 7-S Framework. [online] Available from:
https://www.mindtools.com/pages/article/newSTR_91.htm [Accessed 9/2/19].