Strategic Management: Formulation and Implementation

Assessing The Firm's Operational And Strategic Health

To aid in control, firms will occasionally perform audits to ensure that certain aspects of their operations are in order. Such audit may include operational audits (assessing the firm's operating health) and strategic audits (assessing the firm's strategic health).

Measures Of Organizational Health

Measures or indicators of a firm's current operating and strategic health are shown in Table 6-5 and 6-6. As the tables show, to assess a firm's current operating health, short-term financial, market, technological, and production position are used, while current strategic health is based on strategic market position, technological position, production capabilities, and financial health.