What are the three Es in strategy evaluation?

• A. Economy - level of inputs; Efficiency - link between inputs and outputs; Effectiveness - looks at outputs and the success
• B. Economy - return on investment; Efficiency - labor hours; Effectiveness - speed
• C. Economy - output quality; Efficiency - speed; Effectiveness - cost
• D. Economy - market share; Efficiency - process time; Effectiveness - satisfaction

Answer: (A)

The three Es in strategy evaluation are Economy, Efficiency and Effectiveness. Economy is about obtaining the right resources at the right price, focusing on the level of inputs required. Efficiency measures how well those inputs are transformed into outputs—the relationship between inputs used and outputs produced. Effectiveness looks at the outputs themselves and whether the organization achieves its intended objectives and success. The option that assigns Economy to the level of inputs, Efficiency to the link between inputs and outputs, and Effectiveness to the outputs and success matches these definitions. The other options mix up what each E represents (for example, tying Economy to returns or market share, or defining them by speed or cost alone), which doesn’t fit the standard framing in strategy evaluation.