Strategic trajectory evaluation

Strategic trajectory evaluation
See also
SPACE method Bank efficiency ratio Key success factors McKinsey matrix Market value added Investment proposal Du Pont analysis Return on net assets IFE matrix

Strategic trajectory depicts the position of the company at the time in future. This position is expressed by the quantitative and qualitative parameters of the basic functions of the company taking into account the impact of the external environment.

In the case of quantitative assessment of strategic position we compare the actual values of what is achieved by the company with reference values.

Quantitative parameters are e.g.:

• Market share
• Profit / Loss
• Company's assets
• ROA, ROE indicators

Qualitative parameters are:

• Company position within the economy
• Capacity of management
• General development opportunities

The position of the company can be determined on the basis of the following table. Universal scales of reference values is used. The company is assessed according to specific categories, which allow to determine its position.

An example of a universal scale could be, for example.

The strategic position of the company	Scoring
P1-very good	81-100
P2-good position	66-80
P3-average position	50-65
P4-poor position	30-49
P5-very poor position	less than 30

References

• Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard business review, 72(1), 107-114.