Suitability in Corporate Strategy:
The success of the corporate strategy depends upon the analysis of the following criteria:-
Suitability raises the question whether the strategy would work? The key issues are –
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.
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 –
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