(a)

(i) Suitability: Suitability relates to the strategic logic of the strategy. The strategy must be consistent with the company’s current strategic position and its operational circumstances. Suitability of strategic options can be viewed from many angles. For instance, a strategic option can be considered as suitable if it exploits company strengths and distinctive competences while rectifying internal weaknesses. Also, suitable strategies should neutralize or deflect environmental threats and help the firm to seize opportunities. They must fit with the company’s mission and objectives.
Other questions to ask in evaluating the suitability of strategic options bother on whether they fill the gap identified by gap analysis and whether they generate or maintain competitive advantage over competitors. Management must also ensure that the strategy or strategies involve an acceptable level of risk as well as suit the politics and corporate culture.
It is important for a company to also consider three overall important strategic issues when assessing the suitability of an option:

• Does the strategy fit with any existing strategies which the company is already pursuing, and which it wants to continue to pursue?
• How well does the option actually address the company’s strategic issues and priorities?
• Will the option contribute to a sustainable competitive advantage for the company, in the light of the competitive environment?

(ii) Acceptability: The acceptability of a strategy relates to whether the chosen strategy of the firm is acceptable to its stakeholders. The key stakeholders will be those with high power and high interest in an organization or a strategy. It is particularly important that any potential strategy is acceptable to these key stakeholders.
The level of risk and return associated with the strategy are likely to be critical in determining how acceptable it is. Some considerations in terms of evaluating the acceptability of strategy are discussed below:

• Financial considerations: Strategies will be evaluated by considering how far they contribute to meeting the dominant objective of increasing shareholder wealth. The financial considerations of a chosen strategy would usually be evaluated using investment appraisal ratios and other benchmarks such as return on investment, profits, growth, earnings per share, cash flow, price/earnings, and market capitalization.
• Customers: It is important that the chosen strategy fulfils the expectations of customers. In other words, the strategy must produce value for customers at reasonable prices for it to succeed. Customers may object to a strategy if it means reducing service or raising price but, on the other hand, they may have no choice but to accept the changes.
• Staff: Staff have to be committed to the strategy for it to be successful. If staff are unhappy with the strategy – or with any organizational which result from it – they could either resist the strategy, or else leave the organisation completely.
• Suppliers: Suppliers have to be willing and able to meet the input requirements of the strategy for the strategy to be considered acceptable.
• Government: A strategy involving a takeover may be prohibited under legislation designed to prevent anti-competitive behavior (e.g. the creation of monopoly). It is important to evaluate the chosen strategy in terms of whether it is acceptable within the framework of the law or government policy. Government regulations and policy may stem from tax laws, employment law, environmental laws, competition laws, etc.
• The public: The environmental impact may cause key local stakeholders to protest. Will there be any pressure groups who oppose the strategy?
• Risk: Different shareholders have different attitudes to risk. A strategy which changes the risk/return profile, for whatever reason, may not be acceptable.

(iii) Feasibility: Feasibility is a criterion that is used to evaluate whether the potential strategic option can in fact be implemented. It helps to answer the question, “Is the strategy doable?” In this regard, it is important to assess whether there is enough money as well as the ability to deliver the goods/services specified in the strategy.
Management should also assess whether it has the ability to deal with the likely responses that competitors will make. Other questions that need answering in terms of assessing feasibility relates to whether the company has access to technology, materials and resources to carry through the strategy and whether there is enough time to implement the strategy.
Feasibility must be assessed using both quantitative and qualitative analysis. Quantitative approaches include funds flow analysis and breakeven analysis. Resource deployment analysis is a qualitative analysis that helps the organization to make a wider assessment of feasibility in terms of resources and competences. The resources and competences required for each potential strategy are assessed and compared with those of the firm. In this regard, a two-stage approach may be followed. The first is to find out whether the firm has the necessary resources and competences to achieve the threshold requirement for each strategy and secondly, whether the firm has the core competences and unique resources to maintain competitive advantage.                                                                                                                                                                                                                                                                             (b)

(1) Ethnocentrism orientation: This is a home country orientation and it’s based on the philosophy that the culture of the home country is superior to that of other countries. The approach, thus, ignores any inter-country differences which exist. Essentially, ethnocentric companies will tend to exhibit the following features:

• Market the same products with the same marketing programmers in overseas countries as at home.
• Centralize the marketing function in the home country.
• Standardize the marketing mix.
• Carry out no local market research or adaptation of promotion.
  As a result of the above, market opportunities in the overseas markets may not be fully exploited and foreign customers may thus be alienated by the approach. Ethnocentric companies usually focus on its domestic market and sees exports as secondary to domestic marketing. One significant advantage in using this approach is the economies of scale that accrues to the company.

(2) Polycentrism orientation: The polycentrism orientation is based on a philosophy that is exactly in contrast with the ethnocentrism orientation. This orientation believes that each country’s culture is unique. Based on this philosophy, the following features of polycentric companies become evident:

• It totally adapts the product and the marketing programmer to each local environment.
• It establishes largely independent local subsidiaries who are free to formulate their own objectives and plans.
• It decentralizes its marketing management function.
• It invests massively in marketing research in order to be responsive to the local markets.
  The result of the above is major increases in turnover. However, loss of economies of scale can seriously damage profitability. Ethnocentric companies tend to think of themselves as having multiple identities, what is usually referred to as multinational corporations.

(3) Regio centrism orientation: This is a synthesis of ethnocentrism and polycentrism orientations. It is based on the philosophy that there are both similarities and differences between countries that can be incorporated into regional objectives and strategies. Thus, with the approach market segmentation is fulfilled on the basis of similarities in terms of regions. A Regio centric company will find economic, cultural or political similarities among regions in order to cover the similar needs of potential consumers. For instance, nations like Nigeria, Ghana and Kenya possess a strong regional identity that can be exploited using same products and strategies. The significant features of Regio centric companies are:

• It uses an integrated approach to marketing that is based on regional blocks.

(4) Geo centrism orientation: This orientation is similar to Regio centrism orientation. The only difference is that it fails to recognize similarities and differences among regional blocks. Thus, the target of geocentric companies, also known as global companies, is to target consumers who have similar tastes and preferences wherever they may be found on the globe. The main idea of this approach is to borrow from every country what is best. It treats the issues of standardization and adaptation on their merits so as to formulate objectives and strategies that exploit markets fully while minimizing company costs. The aim is to create a global strategy that is fully responsive to local market differences. The essential features of a global company are as follows:

• It uses an integrated approach to marketing management.
• It gives due consideration to each country’s condition without allowing any specific country’s culture or condition to dominate.