Criteria for evaluating strategy options - Revision history

Dirkjan at 19:48, 27 August 2020

2020-08-27T19:48:35Z

Dirkjan: Replaced content with "Criteria for evaluating strategy options Category:marketing Category:M11 Category:M11-S1 - Reading - Marketing Strategy and Organization - Chapter 6 - Shaping..."

2020-08-27T19:09:46Z

Replaced content with "Criteria for evaluating strategy options Category:marketing Category:M11 Category:M11-S1 - Reading - Marketing Strategy and Organization - Chapter 6 - Shaping..."

Dirkjan: Created page with "Research has shown that the following criteria are generally used for evaluating strategy options:
2020-08-25T07:52:08Z

Created page with "Research has shown that the following criteria are generally used for evaluating strategy options: <html><img src = "/static/files/MBI/Module%2011/scoreboardstrategicoptions..."

New page
Research has shown that the following criteria are generally used for evaluating strategy options:

<html><img src = "/static/files/MBI/Module%2011/scoreboardstrategicoptions.PNG" width="500"/></html>

=Business Opportunity - Size the prize=
The 'prize' to aim for can contain a number of elements:
* Increase in market share
* Increase in customer share
* Access to new markets or distribution channels
* Maintaining or increasing prices
* Increasing margins
* Increasing business process efficiency
* Increasing appropriability of revenues
* Increasing the economic value added
* EEtc.
Each opportunity can represent an increase of 1) revenue, 2) reduce costs or 3) both
=Competitiveness - Can we win?=
# Often a strategy is developed solely by '''''Looking at opportunities and threats'''''
# Another dimension is to '''''seek a competitive advantage to build'''''. Does it provide a small or substantial improvement to the existing advantages? Will you look at the current arena or new ones? (See also [[Strategic game-board|Strategic game-board]])
# The third criterion is to '''''Look at the sustainability of the created competitive advantage'''''
* Feasibility - Can we do it?
# Choosing the right moment
## The concept of the [[The Tipping Point|The Tipping Point]] may be applied in organizational decision making in times of inertia. A good metaphor is for inducing change is the game of domino. Is the heaviest 'domino' (senior management) ready to fall over?
# Resource requirement
## To what degree must core processes be changed?
# Flexibility
## What opportunities remain to adjust after the projects are implemented?
# Team
## The quality of the team that proposes the strategic options is crucial: are the people heavyweight or lightweight?
=Leverage=
Critical options to consider leverage effects are:
# Future spin-offs which may follow from this investment
# Potential business opportunities outside the business unit to other business with the same corporation
# The negative spill overs within the business or across business which may follow from investment in the project.

[[Category:marketing]]

[[Category:M11]]

[[Category:M11-S1 - Reading - Marketing Strategy and Organization - Chapter 6 - Shaping the future]]

[[Category:Model]]

← Older revision		Revision as of 19:09, 27 August 2020
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−	~~Research has shown that the following criteria are generally used~~ for evaluating strategy options:	+	Criteria for evaluating strategy options
−
−
−	~~<html><img src = "/static/files/MBI/Module%2011/scoreboardstrategicoptions.PNG" width="500"/></html>~~
−
−
−	~~=Business Opportunity - Size the prize=~~
−	~~The 'prize' to aim for can contain a number of elements:~~
−	* Increase in market share
−	* Increase in customer share
−	* Access to new markets or distribution channels
−	* Maintaining or increasing prices
−	* Increasing margins
−	* Increasing business process efficiency
−	* Increasing appropriability of revenues
−	* Increasing the economic value added
−	* EEtc.
−	~~Each opportunity can represent an increase of 1) revenue, 2) reduce costs or 3) both~~
−	~~=Competitiveness - Can we win?=~~
−	~~# Often a strategy is developed solely by '''''Looking at opportunities and threats'''''~~
−	# Another dimension is to '''''seek a competitive advantage to build'''''. Does it provide a small or substantial improvement to the existing advantages? Will you look at the current arena or new ones? (See also [[Strategic game-board\|Strategic game-board]])
−	~~# The third criterion is to '''''Look at the sustainability of the created competitive advantage'''''~~
−	* Feasibility - Can we do it?
−	~~# Choosing the right moment~~
−	## The concept of the [[The Tipping Point\|The Tipping Point]] may be applied in organizational decision making in times of inertia. A good metaphor is for inducing change is the game of domino. Is the heaviest 'domino' (senior management) ready to fall over?
−	~~# Resource requirement~~
−	~~## To what degree must core processes be changed?~~
−	~~# Flexibility~~
−	~~## What opportunities remain to adjust after the projects are implemented?~~
−	~~# Team~~
−	~~## The quality of the team that proposes the strategic options is crucial: are the people heavyweight or lightweight?~~
−	~~=Leverage=~~
−	~~Critical options to consider leverage effects are:~~
−	~~# Future spin-offs which may follow from this investment~~
−	~~# Potential business opportunities outside the business unit to other business with the same corporation~~
−	~~# The negative spill overs within the business or across business which may follow from investment in the project.~~
−
	[[Category:marketing]]		[[Category:marketing]]

← Older revision		Revision as of 19:48, 27 August 2020
Line 1:		Line 1:
−	~~Criteria~~ for evaluating strategy options	+	Research has shown that the following criteria are generally used for evaluating strategy options:
		+
		+
		+	<html><img src = "/static/files/MBI/Module%2011/scoreboardstrategicoptions.PNG" width="500"/></html>
		+
		+
		+	=Business Opportunity - Size the prize=
		+	The 'prize' to aim for can contain a number of elements:
		+	* Increase in market share
		+	* Increase in customer share
		+	* Access to new markets or distribution channels
		+	* Maintaining or increasing prices
		+	* Increasing margins
		+	* Increasing business process efficiency
		+	* Increasing appropriability of revenues
		+	* Increasing the economic value added
		+	* EEtc.
		+	Each opportunity can represent an increase of 1) revenue, 2) reduce costs or 3) both
		+	=Competitiveness - Can we win?=
		+	# Often a strategy is developed solely by '''''Looking at opportunities and threats'''''
		+	# Another dimension is to '''''seek a competitive advantage to build'''''. Does it provide a small or substantial improvement to the existing advantages? Will you look at the current arena or new ones? (See also [[Strategic game-board\|Strategic game-board]])
		+	# The third criterion is to '''''Look at the sustainability of the created competitive advantage'''''
		+	* Feasibility - Can we do it?
		+	# Choosing the right moment
		+	## The concept of the [[The Tipping Point\|The Tipping Point]] may be applied in organizational decision making in times of inertia. A good metaphor is for inducing change is the game of domino. Is the heaviest 'domino' (senior management) ready to fall over?
		+	# Resource requirement
		+	## To what degree must core processes be changed?
		+	# Flexibility
		+	## What opportunities remain to adjust after the projects are implemented?
		+	# Team
		+	## The quality of the team that proposes the strategic options is crucial: are the people heavyweight or lightweight?
		+	=Leverage=
		+	Critical options to consider leverage effects are:
		+	# Future spin-offs which may follow from this investment
		+	# Potential business opportunities outside the business unit to other business with the same corporation
		+	# The negative spill overs within the business or across business which may follow from investment in the project.
		+
	[[Category:marketing]]		[[Category:marketing]]