Domestic and world economies were more stable in years past  Product life cycles were longer  Product

development cycles were longer  Change occurred less frequently  Fewer competitors  Increasing difficulty of predicting the future with accuracy  Increase in the number of both domestic and world events affecting organizations

Consistency Strategy should not present inconsistent goals and policies  Consonance Responses to external and internal factors  Feasibility It can be reached within physical, human, and financial resources of the enterprise  Advantage ; must create and/or maintenance of a competitive advantage in the selected area of activity

Prepare revised IFE Compare revised to existing IFE EFE

prepare revised EFE compare revised to existing

Do significant differences occur

ye s

no Compare planned to actual ye s Take corrective action

Do significant differences occur

no Continue present course

Revised EFE Matrix should indicate how effective a firm’s strategies have been in response to key opportunities and threats

competitors
How have competitors react to our strategies How major competitors’ strengths and weaknesses changed Why are competitors’ making certain strategic changes Why are some competitors’ strategies more successful than others

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Are out internal strength still strength  Have we added other internal strengths  Are our internal weakness still weakness  Do we now have other internal weakness  Are our external threats still threats  Are there now other external threat  Are there now other external opportunity

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It is a measurement system  Communication tools  Ensure the consistency of objectives

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It should place an organization in a better position to capitalize upon internal strength; to take advantage of key external opportunities; to avoid, reduce external threats; and to improve internal weaknesses

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Strategy evaluation activities must be economical; too much information can be just as a bad as too little information  Meaningful ; related to firm’s objectives  Provide timely information  Provide truly picture of what is happening  simple

Fortune publish
In its march issue each year, fortune publishes its strategy evaluation ”research in an article entitled ” America's most admired companies Nine criteria 3.Quality of management 4.Innovativeness 5.Quality of products or services 6.Long term investment vale 7.Financial soundness 8.Community and environmental responsibility 9.Ability to attract 10.Develop and keep talents people 11.Use of corporate assets