Business Policy

Strategy Evaluation


Source: JOHNSON, G., and SCHOLES, K. (1997). Exploring Corporate Strategy, Fourth Edition, Prentice Hall, New York. [Chapter 8]

A useful way of looking at evaluation criteria is to view them as falling into three categories: suitability, feasibility, and acceptability.

Suitability: One of the prime purposes of strategic analysis is to gain a clear understanding of the organisation and the environment in which it is operating. A simple summary of this situation might include a listing of the major opportunities and threats which face the organisation, its particular strengths and weaknesses, and any expectations which are an important influence on strategic choice.

Suitability is a criterion for assessing the extent to which a proposed strategy fits the situation identified in the strategic analysis, and how it would sustain or improve the competitive position of the organisation. Some authors have referred to this as ‘consistency’. Suitability can also be thought of as a ‘first round’ look at strategies, since many of the questions below are revisited in more detail when assessing the acceptability or feasibility of a strategy. Suitability is therefore a useful criterion for screening strategies.

The following questions need to be asked about strategic options: