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CMA Intermediate · Operations Management and Strategic Management · Formulation and Implementation of Strategy

Which of the following is a qualitative criterion commonly used in strategic evaluation of a strategy's suitability?

Consistency of the strategy with the firm's mission, resources and external environment is a qualitative criterion. Strategic evaluation examines fit, feasibility and advantage in judgement terms, whereas return on investment, EPS growth and current ratio are numerical financial measures.

  1. AConsistency of the strategy with the firm's mission, resources and the external environmentCorrect
  2. BReturn on investment for the last year
  3. CEarnings per share growth rate
  4. DCurrent ratio of the firm

Explanation

Qualitative evaluation looks at consistency, consonance, feasibility and advantage of a strategy. ROI, EPS growth and current ratio are quantitative financial measures and so do not fit the question.

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