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Syllabus C. Strategy C5. Strategic Choices

C5a. SAF Model

Johnson & Scholes SAF Model

A successful strategy needs to be:

  1. Suitable (fit)

  2. Acceptable (to stakeholders)

  3. Feasible (resources available)

These 3 tests can be applied to any strategy decision!

Suitable Acceptable Feasible
Uses strengths Effect on shareholder wealth M - word model (see below)
Overcomes weaknesses Cost / benefit  
Meet objectives (profit, more control etc) Effect on gearing  

M achinery - sufficient spare capacity?
M anagement - Sufficient skills?
M oney - How much needed? Cashflows likely?
M anpower - Amount and skills of employees needed?
M arkets - Current brand strong enough or new one required? What share is critical?
M aterials - Quality? New suppliers needed?
M ake-up - Does the org structure need changing?
M oo-able - Does the new strategy moo like a heifer - sorry got carried away..