Before deciding whether or not to choose a particular business strategy, an assessment should be carried out to judge whether the strategy is acceptable.
Whether judging the strength or weaknesses of a proposed business strategy, the strategy should be evaluated for it’s:
a. Suitability: does it address the strategic requirements, given the circumstances and the situation?
b. Acceptability: does it address the strategic requirements IN a way that will be acceptable to significant stakeholders?
c. Feasibility: is it practical?
Included within an assessment of acceptability or feasibility should be a financial analysis of the proposed strategy.
Business strategies might be suitable, and they might succeed in achieving their business objectives.
However, if the expected financial return is too low, or if the strategy could only be implemented at a loss, it should not be undertaken.
An assessment of business strategy must always consider the financial aspects.
And any business strategy that is financially unacceptable, should be rejected.
