Suitability in Corporate Strategy:

The success of the corporate strategy depends upon the analysis of the following criteria:-

• Suitability
• Acceptability
• Feasibility

Suitability raises the question whether the strategy would work? The key issues are –

• Does the strategy make economic sense?
• Is it possible to reach the economies of scale, economies of scope or obtain economy?
• Would strategy be environmentally suitable?
• Would be strategy help achieve the organization’s capability?

Suitability is one aspect of evaluation criteria of Corporate Strategy. An in-depth understanding of the organization and its environment in which it is working is absolutely necessary to plan the suitability. An outline of suitability must include the major opportunities and threats which the organization has to confront. The organization, its strengths and weaknesses, and the expectations play an important influence on suitability. Suitability analysis helps in knowing how it would improve and sustain the competitive position of the organization. Suitability is, thus, an important criterion for screening the strategy of the organization. Gerry Johnson and Kevan Scholes have raised the following criteria in assessing the suitability of corporate strategy.

• Does the study address the circumstances in which the organization is operating?
• Is the strategy viable?
• Does the strategy employ core competences?

While R Rumelt questions if the strategy addresses the external environment; and if the strategy creates and maintains competitive advantage in the selected area of activity.

Let us look at the key questions suitability raises –

• Does the strategy address the external environment?
• Is the strategy viable and achievable under the given environment?
• Does the strategy build upon or exploit the strategic capabilities of the Organization?
• Does the strategy create and exploit synergy across the organization?
• Does the strategy fit with the current corporate culture of the organization?
• Does the strategy create and maintain competitive advantage?

There are any numbers of tools, models, and techniques to assess the above questions for the suitability of the strategy.  Some of these are –

Swot analysis, Pest analysis, Fire forces frame work, Strategic group analysis, Value chain analysis, Cultural web mapping, Activity mapping, etc.

Therefore, the success of the Corporate Strategy fully depends on the Suitability analysis