8 - SAE Strategic Options Strategic Evaluation.pptVIP

The Key Question Every Case is Different all businesses are different, industries are different environments are different. But when it comes to the options for growing the value of a simple business or a complex corporation, either a successful one or a failing one, options are always fairly limited. We can describe the options in terms of directions of development and methods of development and the requirements for successful development. Generating Strategic Options The search for opportunities, and the response to threats, using: Drivers of change Scenarios Competency analysis Market segmentation Strategic group analysis 5 Forces analysis Others …. Issue / Option Matching Matrix Generating Options TOWS Matrix The Business Portfolio/Growth Share Matrix Industry Attractiveness/ Business Strength Matrix Grand Strategy MatrixInternal/External Perspective Choosing Corporate Strategy A company can choose a corporate strategy by: identifying the interrelationships among existing business units selecting the core business as the foundation of corporate strategy creating horizontal organisational mechanisms to facilitate interrelationships among the core businesses lay groundwork for future related diversification pursuing diversification opportunities that allow shared activities pursuing diversification through the transfer of skills if opportunities for sharing activities are limited or exhausted pursuing a strategy restructuring if this fits the skills of management or no good opportunities exist for forging corporate interrelationships paying dividends so that the shareholders can be the portfolio managers Option Generation Assure that several viable options reach the top Search deep in the organisation Review existing “rules of the game” Create additional options directly Examine planning axioms Search for possible synergies Combine options and consider timing Use creativity techniques Create options indirectly Buy into selected technologies