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Strategic Evaluation and Selection for THE - Coggle Diagram
Strategic Evaluation and Selection for THE
Introduction
Identifying Strategic Options
Nature of strategic options
Continuous evaluation needed
Competitive Strategy Decisions
Impact on organizational structure and culture
Configuration of value chain activities
Direction of Development: Product and Market Decisions
Importance of product and market selection
Types of strategic options
Growth
Stability
Retrenchment
Product and Market Considerations
Market categories:
Geographic coverage
International exposure
Product features:
Kotler’s five levels of product features
Product and market portfolios:
Focus vs. broad portfolio
Life cycle considerations:
Mature vs. declining products
Strategic Method Decisions
Methods of Growth
Internal (organic) development
Mergers and acquisitions (M&As)
Joint development (alliances, franchising)
Implications of chosen methods for
Resources required
Control over strategic decisions
Speed of change
Applying Evaluation Criteria
SFA Framework: Suitability, Feasibility, Acceptability
Screening process for options
Suitability
Assessment of alignment with strategic objectives
Internal consistency across different strategies
Feasibility
Capability to implement the strategy
Resource and competency assessment
Competitive reactions
Acceptability
Expected performance outcomes
Consideration of stakeholders' reactions, returns, and risks
Financial tools for evaluating returns
Payback method
Breakeven analysis
Accounting rate of return (ARR)
Net present value (NPV)
Internal rate of return (IRR)
Non-financial tools for evaluating returns
Risk Management
Identifying and assessing risks
Strategies to mitigate risks
Scenario Planning and Sensitivity Analysis
Importance of understanding uncertainties
Adjusting forecasts based on different scenarios
Strategic Evaluation in Emergent Strategies
Distinction between prescriptive and emergent strategies
Importance of flexibility and adaptability