|
|
| Line 1: |
Line 1: |
| − | 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]] |
| | | | |
