Strategic Management: Formulation and Implementation
- The relationship between action and outcome is
weaker in strategic control. This is not surprising,
as the most desirable area for control in strategic
problems -the environment -is the least subject
to direct action.
- The key action variables in strategic control are
organizational. In the operational control problem,
technical factors such as labor levels, production
levels, choice of materials, and the like are the
predominant control levels.
- Alternative actions in strategic control are less
easy to choose in advance. In strategic control
problem, it is possible to choose all possible
action responses to received data in advance. In an
operational control problem, the few responses
possible can usually all be worked out before any
operating data received.
- The worst failing in strategic control is omitting
a worthwhile action. In operating control, the most
typical sins are those of omissions (e.g.,
complaints about too many people employed, too
many defects, and too much inventory). In the
strategic control problem, sins of omission are much
more serious (e.g., not moving into a business
opportunity when it presents itself, not undertaking
a particular social program, not applying resources
to meet that challenges in the best fashion).
- The time for strategic control is longer. The period
in which control has an impact is longer for
strategic problems that for operating problems.
- The timing of strategic control is events oriented.
By contrast, operating decisions tend to be made on
a periodic basis, and they are usually measured
- Strategic control has little repetition. Not even
the structure is the same as past problems of a like
kind, much less the technical details. Operating
problems, by way of contrast, tend to repeat their