BS 10 Strategy Evaluation

Question 1

Please mention all three evaluation criteria.

Answer 1

1. Suitability
2. Acceptability
3. Feasibility

Question 2

Please define Suitability:

And ask three questions related to suitability

Answer 2

Definition:

Suitability criteria is useful in assessing the extent in which a proposed strategy fits the scenario presented in the strategic analysis and how that is expected to sustain and improve the competitive position.

Questions:

1. Does the strategy exploit the organizations strength or environmental opportunities
2. How far does the strategy overcome the challenges identified in the strategic analysis?
3. It is in line with organizations purposes?

Question 3

Please define acceptability and ask the question of it.

Answer 3

Acceptable to who?

Definition:

• Accceptance of your Stakeholders
• Essential about assessing risk and return in relation to stakeholders expectations

Question 4

Please define feasibility and ask three questions relating to it.

Answer 4

Definition:

1. Criteria assesses whether the implementation of the strategy is possible and successfull.
2. Key drivers are: Enough resources & Financial resources

Questions:

1. Can the organization perform at the required level?
2. Avaibility of materials and machines?
3. Do we haave the technological competency?

Question 5

Please explain strategic fit.

Answer 5

Definition: Strategic Fit

1. Degree to which an organization is matching its resources and capabilities with the opportunities in the external environment.
2. Matching takes place through strategy.
3. Vital that the firm has the actual resources and capabilities to execute and support the strategy.

Question 6

Assessing Suitabiblity what tools can be used?

List the tools.

Answer 6

1. Product life cycle
2. Positioning
3. Value chain analysis
4. Portfolio analysis
5. Gap analysis

Question 7

Assessing acceptability. List the tools to use in order to evaluate?

Answer 7

1. Profitability analysis (financial return)
2. Cost/benefit analysis (return tangible & intangible)
3. Shareholder value analysis (Identify where real value is created)
4. Analysing risk (Given risk on a strategy is a measure in assessing acceptability)
5. Sensitivity analysis (???)
6. Stakeholders reactions (Power of the stakeholders on future decision)

Question 8

Assessing Feasibility. List!

Answer 8

1. Fund flow analysis
2. Breakeven analysis
3. Resource deployment analysis