Crafting and Executing Strategy
Crafting and Executing Strategy
22nd Edition
ISBN: 9781260157475
Author: Thompson
Publisher: MCG
Question
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Chapter 4, Problem 1LO
Summary Introduction

To analyse: The effectiveness of company’s current strategy.

Expert Solution & Answer
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Explanation of Solution

While evaluating the effective of company’s present strategy a manager should evaluate the following,

The first thing is to study is company’s competitive approach. There exist three best indicators for measuring the effectiveness of company’s strategy they are,

  • To know whether the financial performance of company is better than industry averages,
  • Whether the company is gaining customers and through this, it tries to increase its market share,
  • Whether the company is achieving its financial objectives and goals that were stated in a particular year,

Some of the specific indicators include trends in stock price and company’s sales and growth in earnings, customer retention rate and to know overall financial strength of a company.

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