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develop and analyse the strategic options available to an organisation …

- - - - figure 5.8!!!!!!!!!!
        
        This framework allows strategic options to be created, then evaluated in terms of their impacts on the levers.
        
        An important part of the strategy development process is prioritising the strategic options, and considering a trade-off, with more important or beneficial options taking priority over less significant options.
      - strategic options and levers!!!!!!!!!!!!!!!!!!!
- - - - Markets or industries
        Focus more attention on a certain market or industry.
        Pursue new geographic markets with the same product/service.
        Expand into a fast-growing industry.
        Expand into an emerging, high-risk industry.
        
        Products/services
        Maintain current products and also develop new, related services to support those products.
        Eliminate unprofitable products or services that are not aligned with overall vision and goals.
        
        Customers
        Pursue a new customer market with the same product/service.
        Target full price customers, moving away from discounted customers.
        
        Channels
        Target customer spending by building an online retail presence.
        Use social media to attract new customer channels.
        Develop traditional channels (e.g. newspapers).
        
        Competitive advantage
        Focus on current competitive advantage by streamlining operations.
        Develop new competitive advantage by developing new services that do not currently exist in the marketplace.
        
        The outcome of analysing and determining its strategic options help the organisation to answer the question: ‘What differentiates us from our competitors?’ In other words, what is the organisation’s competitive advantage? How is the organisation going to compete in the future?
        
        Developing strategic options allows an organisation to consider possibilities for to compete in the future.
      - Strategic options
        • Alternative strategy ideas that an organisation considers in order to achieve its goals
        • Allows an organisation to consider possible ways to compete in the future
        
        Outcome of analysing and determining its strategic option
        Help the organisation to answer the question:
        
        What differentiate us from our competitor?
        
        What is the organisation’s competitive advantage?
        
        How is the organisation going to compete in the future?
        
        Allows an organisation to consider
        
        Indicators of a good strategic option:
        
        Commercially viable (i.e. the value to be gained outweighs the effort),
        
        Options must also have a strategic rationale (i.e. options need to be viable in the context of the organisation’s external environment, stakeholder needs, internal performance and capabilities)
        
        Operationally feasible and worth doing, creating competitive advantage for the organisation over its competitors
    - - Operational levers
        
        The operational levers attempt to answer the question: ‘How can we achieve the strategic options through our operations? (Revenue, Cost & Growth)
        
        An organisation needs to consider the effect of different options: which lever needs to be pulled, and how will that affect other options and the organisation more broadly? What levers will result in the best outcomes? Should you risk investing heavily to implement an option, in the hope that growth and increased revenue will follow? Considering the levers, high revenue growth may raise costs, and cost reductions may decrease revenue.
      - Organisational and people lever
        
        figure 5.7!!!!
        
        How can people and organisation help with achieving strategic options?
        (Organisation structure, Skills, Capabilities)
        Do strategic options need changes to organisation structure and employees’ skill and competences?
        Do they exploit strengths of the organisation and its employee skills?
      - The two levers must be examined in tandem. To successfully implement strategic options requires changes and actions in relation to both the operational lever and the organisational and people lever.