It is necessary to regularly evaluate business strategy because strategy is mainly a plan of action designed to achive the specific goals and objectives. strategic planning allows business leaders to identify where opportunity for the improvement exist actually. sometimes evaluation of business strategy also allow management people an opportunity to re-evaluate the business performance and also reassess the goal for the smooth running of the business to become sucessful.
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Strategic evaluation is an important tool for assessing how well your business has performed, relative to its goals. It's an important way to reflect on achievements and shortcomings, and is also useful for reexamining the goals themselves, which may have been set at a different time, under different circumstances.
Rumelt identified three elements that created a competitive advantage: superior resources, superior skills, and superior position.
Making an EvaluationInternal consistency.Consistency with the environment.Appropriateness in the light of available resources.Satisfactory degree of risk.Appropriate time horizon.Workability.
Strategy evaluation is the process by which the management assesses how well a chosen strategy has been implemented and how successful or otherwise the strategy is. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performance.