Testing a strategy - Strategic Management

Strategies may be good or bad, and even a good strategy may fail through poor implementation, or a poor one succeed because of the skill and flair of individual managers. It is useful to test strategies for basic flaws, and the following points are designed to help this process.

  • Is the strategy identified and clearly stated?
  • Has it considered competitors and the industry structure?
  • Does it match the realities of the market?
  • Is the geographical scope appropriate?
  • Is it consistent with environmental forces?
  • Are the levels of risk acceptable?
  • Does it enhance shareholder value?
  • Does it match corporate competence and resources?
  • In other words can it be done?
  • A related question is: does the plan identify and build on core competencies?
  • Is the company structure appropriate?
  • Does it match the company culture?
  • Does it have an appropriate time horizon?
  • Does the plan have internal consistency?

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Strategic Management Topics