Final answer:
When managers evaluate company strategies, they should conduct regular and simple evaluations to ensure a good strategic fit and competitive advantage, while planning thoroughly for the evaluation's implementation. Emphasizing core capabilities is essential as demonstrated by businesses succeeding with a focus on core competencies. Aligning new strategies with existing ones can lead to incremental gains and attract investors based on the company's operational data.
Step-by-step explanation:
When evaluating proposed or existing strategies, managers should scrutinize their company's existing strategies on a regular basis to ensure they promote a good strategic fit, enhance competitive advantage, and facilitate above-average performance. The evaluation process should be simple and actionable, enabling program managers to grasp both the 'what' and 'why' of the actions being taken, thus assuring the evaluation's practicality and applicability. Additionally, it is important to plan all aspects of an evaluation thoroughly before implementation to accommodate any necessary adjustments without undermining the core evaluation framework. Identifying and emphasizing core capabilities is critical, as it can lead to greater success in the marketplace, similar to businesses that excel by focusing on a select range of products or services that define their core competency.
Another important aspect is aligning current strategies with any new strategies to harness incremental gains. As a business grows and information about its operations becomes more broadly accessible, the necessity for investors to know management personally recedes. Bondholders and shareholders will be drawn to the firm based on available data about products, revenues, costs, and projected profits.