Tag: evaluation and control
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Effective Performance Measures of Corporate Control
The primary purpose of strategic management is to maximize the firm’s performance in the long-run. In financial terms, this means maximizing the enterprise value of the firm by maximizing the net present value of the stream of profits (cash flows) over the long-run. Enterprise value is equal to shareholder value plus the value of the…
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Strategic Planning Vs. Strategic Management, and the Performance Gap
The terms strategic planning (strategy formulation) and strategic management are synonymous and interchangeably used in the business world; however, both have different meanings. Strategic management encompasses strategic planning-in other words, strategic planning is a subset of strategic management. Strategic management evolved from strategic planning. Fundamentally, strategic planning incorporates environmental scanning and strategy formulation whereas strategic…