CONSISTENCY OF THE ENVIRONMENT
 

 

 

 

 

 

 

 

 

 

 

 

Suitability Strategy should offer some sort of competitive advantage. In other words, strat- egy should lead to a future advantage or an adaptation to forces eroding current competitive advantage. The following steps may be followed to judge the competitive advantage a strategy may provide: (a) review the potential threats and opportunities to the business, (b) assess each option in light of the capabilities of the business, (c) anticipate the likely competitive response to each option, and (d) modify or eliminate unsuitable options. Validity Strategy should be consistent with the assumptions about the external product/ (Consistent with market environment. At a time when more and more women are seeking jobs, a the Environment) strategy assuming traditional roles for women (i.e., raising children and staying home) would be inconsistent with the environment. Feasibility Money, competence, and physical facilities are the critical resources a manager (Appropriateness in should be aware of in finalizing strategy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A resource may be examined in two different ways: as a constraint limiting the achievement of goals and as an opportu- Resources) nity to be exploited as the basis for strategy. It is desirable for a strategist to make correct estimates of resources available without being excessively optimistic about them. Further, even if resources are available in the corporation, a particular product/market group may not be able to lay claim to them. Alternatively, resources currently available to a product/market group may be transferred to another group if the SBU strategy deems it necessary. Internal Strategy should be in tune with the different policies of the corporation, the SBU, Consistency and the product/market arena. For example, if the corporation decided to limit the government business of any unit to 40 percent of total sales, a product/ market strategy emphasizing greater than 40 percent reliance on the government market would be internally inconsistent. Vulnerability The degree of risk may be determined on the basis of the perspectives of the strategy and available resources. A pertinent question here is: Will the resources be Degree of Risk) available as planned in appropriate quantities and for as long as it is necessary to implement the strategy? The overall proportion of resources committed to a venture becomes a factor to be reckoned with: the greater these quantities, the greater the degree of risk.