Final answer:
Rumelt's criteria for strategy evaluation are feasibility, consistency, consonance, and advantage. These criteria help determine whether a strategy can be successfully implemented, aligns with an organization's goals, remains adaptable to external environmental changes, and provides a competitive edge.
Step-by-step explanation:
Rumelt's criteria for strategy evaluation consist of feasibility, consistency, consonance, and advantage. In the context of strategic management, these criteria are utilized to assess the validity and potential effectiveness of a strategy. Feasibility refers to whether an organization has the resources and capabilities to implement the strategy. Consistency checks whether the strategy is aligned with the organization's goals and policies. Consonance takes into account whether the strategy is adaptable to changes in the external environment. Lastly, advantage explores whether the strategy provides a competitive edge in the market.
To be effective, a strategy must meet all four of Rumelt's evaluative criteria. It must be feasible within the organization's resources, consistent with its objectives, consonant with environmental changes, and must provide a sufficient advantage over competitors. These components come together to ensure that a strategic plan is not only well-thought-out but also actionable and likely to succeed in achieving its goals.
Real-world examples can further clarify these concepts. For instance, a strategy passes the feasibility test if a company has enough financial resources and skilled personnel to execute it. A strategy is consistent if it doesn't conflict with the company's mission and existing policies. It's consonant if it allows the company to adapt to, and possibly capitalize on, changes like new technologies or market shifts. Finally, the strategy must offer a clear advantage, such as a cost benefit or unique product feature that differentiates the company from its competitors.