SFA Model: Evaluating Strategic Strategies

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A. Evaluating strategic options
A desired result can be produced through effective implementation of strategies. Effective strategy means when it accomplished to attain the short term or long term goals which is in line with the vision and mission of the organization as well as the expectations of the stakeholder. Top level management should understand how effectively operational process in an organization can be done in a competitive environment and the organizational components which influence the operational process.
The organization has many choices in strategy formulation. External and internal environments are analyzed during the analysis of different choices. It is difficult to choose a strategy from different choices. It is
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It assesses how these factors come in line to attain the organizational goal. SFA model evaluates is the options are logical for the strategy. Several frameworks, environmental factors, concepts and growth opportunities can be analyzed using PESTEL etc. Five forces or system dynamics can be used to analyze the competitiveness in the industry and planning potential future scenario. Suitability also analyses core competence, group analysis of strategy, legalizing the strategy which is appropriate and apt for stakeholder’s interest, value net works, and it is suitable for the culture. The criteria for evaluating suitability of the strategy are capability suitability, environmental suitability and expectation suitability. But the criteria are relative and it varies in different companies according to the need. At present it has only three criteria but it can be further categorized. The next step in suitability is that selection of the suitable criterion. It could be carried out based on the score or ranking. Each strategic option has given a weight age in a decision tree. Elimination of each choice from the decision tree is based on requirements and preferences or scenario matching. Based on the preferred scenario the options are evaluated and the most preferred position of the firm is…show more content…
The resources include human resource, time, funding and information. The feasibility evaluations can be done by using the tools like forecasting and cash flow analysis, break even analysis and resource deployment analysis. The strategy has to be put into practice for that the organization need resources, competency and capability. Available resources have to assess and financial feasibility of the strategic option is also evaluated. The activities includes in the strategy implementation needs availability of other resources. The activities are to be fit with internal as well as external environment. The external fie is analyzed during suitability
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