Which test evaluates whether the strategy is producing good company performance?

• A. The Fit Test
• B. The Competitive Advantage Test
• C. The Performance Test
• D. The Strategy Test

Answer: (C)

Measuring whether a strategy is producing good company performance is about looking at actual results. The Performance Test focuses on this by examining financial and operational outcomes and comparing them to the targets set in the plan. It asks whether profitability, revenue growth, market share, efficiency, and overall value meet or exceed expectations. When results align with or beat targets, the strategy is delivering performance; if they fall short, it signals the need to adjust course. The other checks serve different purposes: a fit check looks at alignment with resources and environment, a competitive advantage check asks whether the strategy creates a sustainable edge, and a strategy check assesses coherence and feasibility.