Feasibility in Corporate Strategy:

Feasibility in Corporate Strategy Corporate strategy is evaluated against three key success criteria. This model is evolved by Johnson, Scholes, and Whittington. These are –

• Suitability (will it work?)
• Feasibility (can it be made to work?)
• Acceptability (will they work it?)

`Feasibility` is related to the fact that if resources required to implement the strategy are available, can they be developed or obtained? These resources are -

• funding
• people
• time
• information

`Feasibility` study considerably differs from project management. It is a major challenge. It is done mainly to minimize the risk. It is done to limit the organizational exposure to future risk. It is not merely technical aspects, but must involve commercial, political, environmental and other factors to align with the success of the strategy. `Feasibility` is designed to find out that given the environment and circumstances, will the strategy succeed? The factors to be taken into account are -

• financial viability
• environmental integrity
• cultural acceptability
• political practicality.

Any strategy or project or plan is fully dependent on the `feasibility` for its successful implementation. An analysis has to be done to see the `feasibility` works by using certain yardsticks or fundamental questions – Johnson et al raises the following questions -

• Can the strategy be funded?
• Is the organization capable of performing to the required level (both in terms of quality and services)?
• Can the expected market position be achieved and are the marketing skills available?
• Can the competitive reactions be coped with?
• How will the organization ensure that both the required managerial and operative
• skill levels are available?
• Will the technology (both product and process) be available to compete effectively?
• Can the required material and services be obtained?

All the above questions have to go along with the timing of the strategy planned. The tools that are used to evaluate the `feasibility` are –

• Cash flow analysis and forecasting;
• Breakeven analysis’
• Resource development analysis.

The successful implementation of any strategy or project depends on a thorough and well analyzed `feasibility` study.