- November 26, 2015 at 7:03 pm #285580kp1990Member
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I wanted to get more clarity on when I should use the Suitability/Feasibility/Acceptability criteria to answer a P3 Question?
I have come across a question requirement which asked to assess (using financial and non financial measures) the attractiveness of an acquisition target. My first thought was to apply Porters 5 forces model, but the answer used the SFA criteria. This left me confused!
Please could you help? ThanksNovember 26, 2015 at 7:56 pm #285589Ken GarrettKeymaster
- Topics: 10
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You can use the 5 Forces model (and/or perhaps PESTEL, and/or an analysis of resources.), but that does not rule out SFA.
SFA is a great summary of of all the influences. So,
Suitability: what’s happening in the big bad world (PESTEL). If economies are heading down than probable expansion is not suitable. If you are a small supplier then attempting a cost leadership strategy is not suitable. If a substutite product seems likely then it might not be suitable to invest in production of old technology
Feasibility: simple. Do you have the resources and competencies to make a success of the strategy?
Acceptability: will your stakeholders play ball? Are they happy?
5 forces is not wrong but might be only part of the jig-saw.
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