Question

what is the criteria for evaluating each strategic alternative, when an organization faces a dynamic environment? Provide details.

Answer 1

There are three criteria for evaluation of strategic alternative when an organisation is facing a dynamic environment. Those Criteria are as follows-

A. Criteria of suitability-this is the criteria when the company is looking that various strategic alternative are suitable to the company or not, so only those strategic alternatives are to be selected which are suitable to the company in the long run and they have the potential of maximizing the overall rate of return

B. Criteria of feasibility-the company will also look that the various strategic alternative are feasible in nature and can be financed by the company and can be practically accommodated by the company in its overall organisational structure or not, so the criteria of feasibility is another important criteria for looking into selection of strategic alternative.

C. Criteria of acceptability-this is the criteria of looking at whether this project is acceptable to the company or not because there are many projects which can contradict the basics of the company and they are not suitable to the fundamental of the strategic interest of various stakeholders, so the acceptability of the project to the various stakeholders should be anticipated in advance for selection of strategic alternative.

these three criterias are always to be properly analysed and assessed in order to evaluate weather to select various strategic alternatives or not.