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Evaluating Strategies

LO: By the end of this session you will be able to Employ three success criteria for evaluating strategic options

Strategy evaluation

Suitability: does a proposed strategy address the key opportunities and constraints an organisation faces? Acceptability: Does a proposed strategy meet the expectations of stakeholders? Feasibility: Would a proposed strategy work in practice?

Activity
In small groups:
1. Decide what questions you would ask of the strategy to decide whether it is suitable 2. Decide the terms under which a strategy would be deemed acceptable to stakeholders 3. List the factors that would need to be considered when deciding whether a strategy is feasible

Suitability
Does the proposed strategy
Exploit company strengths Rectify company weaknesses Neutralise environmental threats Help the firm to seize opportunities Satisfy the goals of the organisation Fill the gap Generate or maintain competitive advantage Involve an acceptable level of risk Suit corporate culture

Acceptability
Risk (the extent to which the outcomes of the strategy can be predicted) Return (the financial benefits which stakeholders are expected to receive from the strategy) Stakeholder reactions

Feasibility
Could the strategy work in practice?
Financial feasibility People and skills The ability to deliver the goods/ services specified in the strategy The ability to deal with the likely responses that competitors will make Access to technology, materials and resources Enough time to implement the strategy