UNIT 8 - SELECTING A STRATEGY Flashcards
when considering which strategy/ies to use state the factors a bs will consider
expected costs
expected returns
opportunity ocsts
risk
the fit with the resources and strength of the bs
impact on stkh
ethical issues involved
give 2 example q for consideration for EXPECTED COSTS
What investment is required
does bs have funds to do this
Give example for EXPECTED RETURNS
what are the likely profits relevant to the initial investment
Give example of Opportunity Cost
What are alt startegies/projects we could pursue if projects not pursued
Give example of the risk consideration
what would downside be if strategy fails
What is a very important aspect of a startegic decision
the risk
in terms of risk what will mangers want to assess
damage to bs if strategy unsuccessul
Give example of the risk consideration i.e 3 questions they may ask
What’s the financial risk
what is risk to brand and companys rep
what the risk of legal action
Give example of three considerations/questions that go ito ‘the fit with resources and the strength sof the bs ‘
is project affordable
does bs have competences( e.g expertise and experience )to perform well
does bs have capacity required
Give example of a consideration/question for impact on other stkh
likely to support plan or resist it
what objections might they have
Give 2 example of questions/ considerations for ‘ ethical issues involved’
are managers and owners happy to be associated with the project
could it be criticised for being unethical
as well as considering where to comp in terms of mkt and product bs also consider
how to compete
what is startegic positioning
when bs considers
how to compete
in terms of
how to position itself relevant to its competitros
