6. Generate and Develop Options Flashcards
What are the 2 things to be considered when diagnosing an organisation’s starting position?
- Where we are now in terms of SWOT
- What resources and competencies we have to work with
What does a resource audit do?
Help to reveal strengths and weaknesses, core competencies, company competitive position and analysis of value creation
What 5 key things does a resource audit examine the position of?
- Tangible + intangible resources
- Core competencies
- Products, trademarks, brands
- Stakeholder relationships
- Returns to shareholders
What is strategic fit?
Having the right resources to take advantage of opportunities in the external environment
What is strategic capability?
The ability to perform at a level that achieves objectives and fulfils the mission of the organisation (which changes over time)
What are the elements of the 9 Ms model of resource audits?
- Manpower
- Money
- Management
- Machinery
- Markets
- Material inputs (supplier relationships)
- Methods/processes used
- Management information
- Make-up (culture, intangibles)
What are threshold competencies?
Capabilities necessary for the organisation to compete
What 2 ways do we review competencies?
Environmental scanning and communication with stakeholders
What are core competencies?
Activities and processes through which resources are deployed to gain a competitive advantage in ways that others cannot imitate or obtain
What are unique resources?
Those which cannot be easily imitated or obtained by competitors
Other than resources, what else should be evaluated when diagnosing an organisations starting position?
Value drivers
What is foresight?
Rehearsing alternative futures for the organisation, assuming that actions today will shape the future
What 4 things does foresight help with?
- Overcoming vested interests
- Expanding mindsets
- Help employees form new strategic views
- Help participants buy into or develop the organisation’s strategic vision
What are the 5 Cs of foresight?
- Communication
- Concentration
- Co-ordination
- Consensus
- Commitment
What is forecasting?
The process of estimation in unknown situations
What are the 3 main examples of forecasting techniques?
- Correlation
- Regression analysis (linear relationship)
- Time series
What is trend analysis?
Collecting information and attempting to spot a pattern or trend in the information
What is trend extrapolation?
The assumption that the past will repeat itself
When is trend extrapolation useful, and what particular technique is used?
In industries with seasonal fluctuations - time series analysis
What is the Delphi method?
A systematic method for obtaining forecasts from a panel of independent experts, where repeated answering converges on one ‘correct’ answer
What are the benefits of anonymity in the Delphi method?
- Dont stick to previous statements - admit errors
- Dont follow group ‘leader’/ dominate
- Feel free to express opinions
What does scenario planning do?
Describe a range of plausible scenarios and the action plans required if they occur - rehearsing the future
When is scenario planning most useful?
In complex and dynamic environments
What are the 10 steps of scenario planning?
- Define scope of activities
- Identify key stakeholders
- Identify main trends
- Identify uncertainties
- Identify causes of disruption
- Construct initial scenarios
- Check consistency and plausibility
- Reduce to 2/3 scenarios
- Use scenarios to form strategy
- Identify required resources
What are the 4 main advantages of scenario planning?
- Deeper understanding of environment
- Indicates what needs to be monitored
- Encourage environment scanning
- Encourages creative thought
What are the 4 disadvantages of scenario planning?
- Expensive
- May be a distraction from main business
- May be difficult to act due to vested interests
- Many scenarios won’t come through
What is visioning?
Seeing an image of the future which may be vague or out of focus, which becomes more concrete over time with a goal to come up with a plan to get us there
What is morphological analysis?
Systematic investigation of all the components of large scale problems, products and processes using a matrix
What is a relevance tree?
A systemised approach, starting with a clear goal, that traces the desired outcome back through trends and events to see what the organisation needs to do to achieve the desired outcome
What are 4 alternative foresight techniques?
- Issue analysis
- Opportunity mapping
- Cross impact analysis
- Role playing
What is the main learning from game theory?
The interdependence in decision making causes each player to consider the other player’s possible decisions, or strategies, in formulating strategy - collaboration is required
What are the 3 real options?
- Follow on
- Delay
- Abandon
