Appropriate time horizon viable strategy reveals what

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Appropriate time horizon —viable strategy reveals what goals are to be accomplished and says something about when the aims are to be achieved. In choosing a time horizon, attention should be given to goals being pursued and to company involved. The larger the organization, the further its strategic time horizon extends, since its adjustment time is longer. Importance of extended time horizon derives from fact that organization changes slowly and needs time to work through basic modifications in its strategy. It also derives from fact that there’s advantage in consistency of strategy maintained over long periods of time. Workability —is the strategy workable? What is evidence of a strategy ‘working’? Quantitative indices can be used to measure influence of 2 key factors: strategy selected and skill with which its being executed. Can also use: degree of consensus which exists between execs concerning goals/policies, extent to which major areas of managerial choice are identified in advance with time to explore alternatives, extent to which resource req’s are discovered before ‘last minute’. 5. From the article "How to Evaluate Corporate Strategy", define and describe "critical resources". Define and describe the 3 most common critical resources. What implications do resources have on strategy? Resources can be critical in two ways: as factor limiting achievement of corporate goals and as that which company will exploit as basis for its strategy. So critical resources are what company has most of and least of. 3 resources often seen as critical are money, competence and physical facilities. Money provides greatest flexibility of response to events as they arise. It’s considered ‘safest’ resource since it gives freedom to choose from widest variety of future alternatives. Companies trying to reduce short-run risk accumulate greatest reservoir of funds. Money can also place a company at disadvantage wrt other companies following a higher risk course. Competence: organizations survive since they’re good at doing things needed to keep them alive. Degree of competence is not uniform across range of skills needed to stay in business (i.e. some really good at marketing, others finance, etc). Physical facilities are resources whose strategic influence is misunderstood often. Managers are either technical (see facilities as tangible symbol of corporate entity) or financial (see facilities as undesirable, but needed freezing of part of company’s funds— dominant group). Facilities don’t have their own intrinsic value. Their value is in their location relative to markets (labour, materials, etc). So appraisal of facilities as a resource should consider relationship of company to its environment. The strategy decision involves deciding: how much of company’s resources to commit to opportunities currently perceived, and how much to keep uncommitted as reserve for unanticipated demand.
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