How can firm strategy be evaluated? A proposed six-test model

Firm strategy consists of a set of decisions that identify the objectives to be reached and how to reach them in a competitive context. Given that all companies operate in competitive contexts, it follows that that all have a de facto strategy. However, strategy is not always a result of explicit planning and, even when it is, there may be a significant and sometimes irreconcilable difference between what was planned and what is actually implemented.For these reasons, it is useful to evaluate the strategy of one’s own firm by carrying out what is nothing less than a diagnostic test. This is particular true when competitive pressure exceeds certain limits and makes the situation even more volatile and subject to risk: if it is true that sustainable competitive advantages are becoming increasingly rare and shorter-lasting, it is therefore also true that strategic choices need to be continuously challenged and assessed. The aim of this article is to propose a model of tests designed to diagnose the quality of a strategy as a whole.