what are the three fundamental strategy evaluation activities?
The three fundamental strategy evaluation activities are:
Reviewing External and Internal Factors: This involves assessing the external environment (such as market trends, competition, and regulatory changes) and internal factors (such as resources, capabilities, and performance metrics) that can impact the effectiveness of the strategy. This evaluation helps in understanding whether the current strategy aligns with the external opportunities and threats, as well as internal strengths and weaknesses.
Measuring Organizational Performance: This activity focuses on evaluating the outcomes of the strategy by measuring performance against established goals and objectives. Key performance indicators (KPIs) and metrics are used to assess financial performance, market share, customer satisfaction, and other relevant criteria to determine how well the strategy is working.
Taking Corrective Actions: Based on the insights gained from the review of factors and performance measurement, this activity involves making necessary adjustments to the strategy. If the evaluation indicates that the strategy is not achieving desired results, corrective actions may include refining the strategy, reallocating resources, or even pivoting to a new strategic direction.
These activities are essential for ensuring that an organization remains responsive to changes in its environment and