(BUS 13) Tests of Consistency Among the Components of a Strategy
Internal Consistency
- Are the goals mutually achievable?
- Do the key operating policies address the goals?
- Do the key operating policies reinforce each
other?
Environmental Fit
- Do the goals and policies exploit industry opportunities?
- Do the goals and policies deal with industry
threats (including the risk of competitive response) to the degree
possible with available resources?
- Does the timing of the goals and policies reflect
the ability of the environment to absorb the actions?
- Are the goals and policies responsive to broader
societal concerns?
Resource Fit
- Do the goals and policies match the resources
available to the company relative to competitors?
- Does the timing of the goals and policies reflect
the organization's ability to change?
Communication and Implementation
- Are the goals well understood by the key implementers?
- Is there enough congruence between the goals
and policies and the values of the key implementers to insure
commitment?
- Is there sufficient managerial capability to
allow for effective implementation?
These questions are a modified version of those developed in Andrews (1971).
Source: Competitive Strategy: Techniques for Analyzing Industries and Competitors, by Michael E. Porter
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