Even though the terms efficiency and effectiveness are widely used in strategy literature, inaccurate usage of these words is still frequent. We strived to conceptually analyse the two criteria of strategy selection, i.e., compatibility with goals and with circumstances to obtain standard and operational terms for them. Subsequently, we created a bond between the two criteria of strategy selection and the concepts of effectiveness and efficiency, and thus ultimately defined \\\\\\\'strategy effectiveness\\\\\\\' and \\\\\\\'strategy efficiency\\\\\\\'. The resultant strategy effectiveness and efficiency were introduced as the index of productivity, which signifies the ultimate utility of a strategy.

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