why should strategy-evaluation activities be economical?

Question

Strategic Management

Answer 1

Let me re-word your question:

Why should you avoid spending too much money on strategy-evaluation activities?

I think the idea is that you should spend no more than you need to for strategy evaluation by an outside consultant. Any money spent on such activities is that much less that you can pay yourself, your employees or for other overhead expenses.

In fact, any activity a company does should be economical. Even the CEO's pay should be economical, in the sense that it should cost no more than makes good business judgment.