11.3 Evaluating strategic options

Question 1

It is important that strategy is e_________ to ensure that the optimal route if being followed.

Answer 1

evaluated

Question 2

Key Performance Indicators (KPIs) should have three key dimensions:

1) a_________
2) m_________
3) f______ impact

Answer 2

accuracy
materiality
forward impact

Question 3

Identification of organisational d______ is vital in setting KPIs. These d_____ need to help us evaluation both the current position of an organisation and its potential for achieving future success.

Answer 3

drivers

Question 4

Building s______ is important in determining and evaluating potential success of a strategy.

Answer 4

Scenarios

Question 5

Using a d_______ t____ when building scenarios can help to clarify the strategic route to achieving organisational goals.

Answer 5

decision tree

Question 6

There are three fundamental challenges which need to be applied to every strategic option being considered by an organisation:
1) S_______ - does the strategic option address the realities of the internal, micro and macro environment?

2) A_________ - does the option meet the expectations of stakeholders, in particular with regard to risk and return?
3) F________ - will the proposed strategic option actually work in practice? Do we have the necessary resources?

Answer 6

Suitability
Acceptability
Feasibility

Question 7

“R_____ o______” is a term for the practical achievable options available to an organisation when choosing its available options.

Answer 7

“Real options”

Question 8

Rumelt (1980) suggested four fundamental principles for evaluating corporate strategy:
1) C________ - goals and policies should be aligned to ensure this is no distance or conflict between different divisions and people

2) C_______ - strategy must be closely aligned with the external environment and be able to adapt to environmental change
3) A________ - there must always be a understanding of how competitive advantage can be created and maintained
4) F_________ - the organisation must have the ability, the people and the motivation to carry out strategy

Answer 8

Consistency
Consonance
Advantage
Feasibility

Question 9

Johnson (2017) suggests that caution is required when conducting strategic evaluation. He states the following “needs”:

• need to avoid c______ between people
• need to ensure c_______ between different elements of strategy
• need to ensure strategic options can be r________ implemented

Answer 9

conflict
consistency
realistically

Question 10

What 4 methods does Wearden provide for evaluating strategic options?

Answer 10

1 KPIs
2 Key evaluation critera (SAF)
3 “Real” options
4 Rumelt’s 4 principles (CCAF)

Question 11

What is meant by “real options”?

Answer 11

The practical achievable strategic options that are available to an organisation.