What Is Strategic Evaluation?

Save

Strategic evaluation is a way for businesses to evaluate the health and productivity of their company and their future endeavors. Typically, strategic evaluations attempt to see past the obvious factors that influence short-term plans, and seek a more-dynamic study of the trends that will dictate the future success or failure of the company. Like a chess match, strategic evaluation succeeds when companies are able to accurately analyze and predict several moves ahead into the future, in order to best tailor their present policies.

Uniformity

  • In forming a strategic evaluation of a company's future goals, it is important that an idea not compromise the integrity of another idea. Companies that have hypocritical or oxymoronical policies are obviously prone to failure. Oftentimes, two worthy goals will be inconsistent with one another, and thus care must be taken to be sure both are not included in a final plan.

Business Environment in Flux

  • Aside from ensuring that goals do not compromise the integrity of one another, it is also important that the goals of a business be commensurate with the environment that they are in. A strategic evaluation, going a step beyond, will consider this primarily in terms of how social and economic changes in the future might cause disruption to an environment that is presently perfect. This is known as a "generic" strategy.

Seeking an Advantage

  • Another way to analyze the environment in which the business exists is by looking at how other competing firms might change over time, and attempting to react accordingly. This competitive strategy looks at the various differences between other companies, and how the predicted changes in their business can be used to levy an advantage. Perhaps the most crucial consideration in competitive strategy is seeking a way to create a plan unique to your own firm, that cannot be duplicated, stolen or undermined by the strategies of another.

Feasibility

  • The final crucial core component of strategic evaluation is a consideration of the feasibility of a plan. This means ensuring that the moves the business intends on making will not be too large of a drain on available resources, nor bring up consequences that are unsolvable. Normally, feasibility is defined in economic terms. It must be guaranteed that there are enough funds available to finance the plotted endeavors. However, it is also important to look at a company's past, and whether or not the company has demonstrated the talent and capability to pull off what is planned.

Related Searches

References

  • Photo Credit business woman talk to cell phone on business building image by Anatoly Tiplyashin from Fotolia.com
Promoted By Zergnet

Comments

You May Also Like

  • What Is the Meaning of Strategic Direction?

    A strategic direction includes the central forces that propel your business toward its intended objectives. Your vision, mission, strategies, tactics and core...

  • Importance of Employee Performance Evaluations

    Employee performance evaluations are important for a variety of reasons. Evaluations are normally given annually by an employee's immediate supervisor. The employee,...

  • How to Do a Rumelt Evaluation Method

    A good business strategy defines and prioritizes the actions required to achieve long-term goals. Yet many business owners struggle with business strategy...

  • Purpose of a Training Evaluation Strategy

    Employee development provides many benefits to both employees and the organization. However, it is essential that training and development are implemented strategically...

  • Why Is Marketing Strategy Important?

    A marketing strategy helps a company effectively use its resources to deliver a sales message to a target audience. A marketing strategy...

  • Strategic Evaluation Methods

    A significant challenge for many organizations is the ability to implement or execute strategic plan initiatives. Once a plan is developed, and...

Related Searches

Check It Out

3 Day-to-Night Outfits for the Work Week

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!