How to Evaluate Strategy

EVALUATING BUSINESS STRATEGY* Richard P. Rumelt November 28, 1993 trategy can neither be hypothesize nor adjusted to changing circumstances without a process of system evaluation. Whether performed by an individual or as part of an organizational review procedure, dodging evaluation forms an essential step in the process of guiding an enterprise. For many executives dodging evaluation is solely an appraisal of how well a business performs. Has it grown? Is the salary rate normal or better? If the answers to these questions are af pixilatedative, it is argued that the firms strategy must be sound. Despite its unassailable simplicity, this musical note of reasoning misses the whole point of strategy?â€"that the critical factors ascertain the quality of long-term results are often not nowadays observable or simply measured, and that by the time strategical opportunities or threats do directly affect operating results, it whitethorn well be too late for an effective response. Thus, strategy evaluation is an attempt to look beyond the obvious facts regarding the short-term health of a business and appraise instead those more(prenominal) fundamental factors and trends that govern success in the chosen field of force of endeavor.

THE CHALLENGE OF EVALUATION However it is accomplished, the products of a business strategy evaluation are answers to these three questions: Are the objectives of the business impound? Are the major(ip) policies and plans appropriate? Do the results obtained to date subscribe or refute critical assumptions on which the strategy rests? devise adequate answers to these questions is neither simple nor straightforward. It requires a reasonable insert of situation-based knowledge and more than the usual degree of insight. In particular, the major issues which make evaluation difficult and with which the analyst must cut to grips are these: Each business strategy is unique. For example, one paper manufacturer might rely in its vast lineament holdings to weather almost any storm while... If you want to range a full essay, order it on our website: Orderessay

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