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110 Strategy Evaluation and Selection

© ABE and RRC

in the interests of their members, and if the government is unable to gain their co-operation it
is unlikely that the strategy will be successful.

Another important dimension in getting a strategy accepted is with respect to the
environment. One of the problems experienced by mobile phone companies is the
resistance by members of the public to having masts erected near their homes, due to fears
about the potential effects on health.


The third factor which needs to be considered is whether it is possible to implement the
strategy successfully. It must be asked "have we the necessary resources to put this
strategy into effect?"

Resources in this context means more than just financial capability, although this, of course,
is fundamental. It also requires that the quality of performance is satisfactory, which means
that the necessary skills are available within the workforce. Other necessary resources may

 technological "know-how";

 availability of materials and machines; and

 other necessary back-up services.


It is not only important that a strategy works towards achieving the objectives which an
organisation has stated, but also that it does not have an adverse effect on any other of the
organisation's activities. A particular strategy must fit in with and relate to all other strategies
within the organisation.

This applies at every level, and to every area, but is particularly important at the operational
level, where interdepartmental co-operation and liaison are so vital. Strategic options also
need to be considered in terms of their cultural fit, i.e. how easily they can be assimilated by
the organisation.

In these areas, if there is a difference in fit, then it is the culture of the organisation which
should be adjusted to fit the strategy, rather than changing the strategic option to fit the
current culture.

We have already described synergy as being achieved where two or more activities combine
in such a way that the combined whole is greater than the sum of the parts. Synergy can
arise through a shared strategic logic between SBUs. Thus, if two or more SBUs have
compatibility with a decentralised contract, and there is an opportunity for each of them to
improve by sharing then, as Campbell suggests, strategies based on the exploitation of
synergy may be regarded as suitable.


Establishing Rationale

(a) Product Life-Cycle Analysis

We first studied this in Unit 2, where we saw that a continuous process of external
change takes place during a product's life-cycle, ranging from the entry of competitors
into the market to changes in consumer attitudes.

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