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Question 1

what are the three criteria used to evaluate strategic performance?

Answer 1

suitability - is strategy consistent, does it give firm better fit with environment, do new products fit with existing ones?

feasibility - is strategy within resources and capability of organisation, is time scale achievable, can we achieve critical success factors necessary to implement strategy?

acceptability - looks at risk & return, is risk acceptable, does strategy meet criteria of success for every stakeH?

Question 2

what is the balanced scorecard used for?

Answer 2

for performance evaluation, whereby it looks at different perspectives. provides broad range of financial & non-financial measures

Question 3

what is risk management?

Answer 3

process of identifying and assessing risks, then developing, implementing and monitoring of strategy to respond to those risks

Question 4

state the four steps of the risk management process.

Answer 4

1. identify risk
2. assess risk
3. risk response
4. monitor

Question 5

explain the first stage of the risk management process.

Answer 5

identify risk. what type of risk is it? operating, strategic, financial, political etc.

Question 6

explain the second stage of the risk management process.

Answer 6

assess risk. likelihood vs impact. assess best & worst outcomes. numerical analysis eg. margin of safety to BEP

Question 7

explain the third stage of the risk management process.

Answer 7

risk response. what should we do about it?
Transfer
Avoid
Reduce
Accept

Question 8

explain the fourth stage of the risk management process.

Answer 8

monitor. how effective is the response? has the risk changed?