Business Resources

What are the criteria used to select the best strategy? What standards can be used to determine whether the strategy was successful or not? Three tests can be used to evaluate the best strategic options, namely:

1. Goodness of Fit Test. Good strategies have to be really suited to the industry and competitive conditions, market opportunities and threats, and other aspects of the external environment company. On the other hand, he also should be in keeping with the strengths and weaknesses, resources, competencies, and competitive ability of the company.

2. Competitive Advantage Test-good strategy should be able to improve the competitiveness of enterprises.

3. Performance Test-a good strategy should be able to improve company performance. Two types of performance improvements that most often said about the ability of the strategy are: to increase profitability and improve the company’s competitive strength and market position in the long term. Read entire article.