The board of directors of Alex plc are currently considering whether to pursue a new strategy in respect of one of their major strategic business units.
When evaluating a strategic option in this way, the final decision on whether to pursue the strategy or not should be judged against which ONE of the following criteria?
Select ONE answer:
- A cost of entry test
- A suitability test
- An attractiveness test
- A payoffs test
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Notcorrect
- Correct == > Gerry Johnson and Kevan Scholes recommend evaluating strategies against the following criteria: Suitability – does the strategy fit the strengths, objectives and image of the company? Feasibility – does the company have the necessary resources to pursue the strategy effectively? Acceptability – is the strategy acceptable to the company’s
- Not correct
- Not correct
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