Acceptability in Corporate Strategy:

Acceptability is one of the criteria for assessing the success of strategic options.

'Acceptance' is primarily concerned with the expectations of the stakeholders, employees, and customers with the company.  The company’s performance is based on its returns, risk, and shareholders reactions.

Returns:  Returns could be financial or non-financial.  Improvement in higher income, employees desire for career betterment, and customers’ expectations of better value for their money are a few factors to evaluate 'acceptability' in Corporate Strategy.

Risks:  Risks relate to the probability and its consequences of failure of strategy, both financial and non-financial.

Stakeholders’ reactions:  The company should anticipate the likely reactions of the stakeholders.  Shareholders could be against the issue of new shares, and there could be opposition for outsourcing of jobs from the unions and employees for fear of losing their jobs.  Merger and acquisition of new companies could be a cause of concern for its quality and financial implications for customers.

'Acceptability' is a difficult aspect, since it is related to peoples` expectations.  'Acceptability' to who is a moot question that should be studied.  The following points would help identify the consequences.

• the financial performance of the company vis-à-vis the profitability;
• cost versus benefit appraisal;
• what are the financial risks involved;
• effect on capital investment (shareholders) and structure;
• how the changes will affect the general expectations of the people in the company(attitude Vs greater risks)
• will there be changes in the function of any department, groups or individuals to any marked degree;
• the company's relationship changes with the suppliers, government, unions and customers;
• will the strategy be acceptable in the organization's environment (the acceptability of local community to any disturbance in terms of pollution, noise, or health hazards)?

There are a number of tools, models, and techniques to assess the Returns, Risks, and stakeholders expectations for properly evaluating the 'Acceptance' by both internal and external factors of the organization.