Research has shown that the following criteria are generally used for evaluating strategy options:
<<image /static/files/MBI/Module%2011/scoreboardstrategicoptions.PNG width:500>>
!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]])
# 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]] 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?
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.
Wed, 12 Jan 2011 21:14:01 GMT
Wed, 12 Jan 2011 21:14:01 GMT
M11-S1 - Reading - Marketing Strategy and Organization - Chapter 6 - Shaping the future