Презентация на тему Part iii:strategy in action

Criteria and techniques that can be used to evaluate

possible strategic options.
How strategies develop in organisations; the processes that may give rise to intended strategies or to emergent strategies.
The way in which organisational structures and systems of control are important in organising for strategic success.
The leadership and management of strategic change.
Who strategists are and what they do in practice.

options:
– Suitability: whether a strategy addresses the key

issues relating to the opportunities and constraints an organisation faces.
– Acceptability: whether a strategy meets the expectations of stakeholders.
– Feasibility: whether a strategy could work in practice.
For each of these use a range of different techniques for evaluating strategic options, both financial and non-financial.

techniques of evaluation

strategies address the key opportunities & constraints an organisation

faces, through an understanding of the strategic position of an organisation.
It is concerned with the overall rationale of the strategy:
Does it exploit the opportunities in the environment and avoid the threats?
Does it capitalise on the organisation’s strengths and strategic capabilities and avoid or remedy the weaknesses?

position (1)
Table 11.2 Suitability of strategic options in relation

to strategic position

position (2)
Table 11.2 Suitability of strategic options in relation

to strategic position (Continued)

of suitability

of suitability (Continued)

scenarios.
Screening for competitive advantage.
Decision trees.
Life cycle analysis.

cycle/portfolio matrix
Source: Arthur D. Little

industry can be:
A dominant position which is rare in

the private sector unless there is a quasi-monopoly position. In the public sector there can be a legalised monopoly status.
A strong position where organisations can follow strategies of their own choice without too much concern for competition.
A favourable position where no single competitor stands out, but leaders are better placed.
A tenable position can be maintained by specialisation or focus.
A weak position where competitors are too small to survive independently in the long run.

expected performance outcomes of a proposed strategy meet the

expectations of stakeholders.

- the ‘3 R’s’:
Risk.
Return.
Reactions (of stakeholders).

of a strategy can be predicted.

Risk can be assessed

using:
Sensitivity analysis.
Financial ratios – e.g. gearing and liquidity.
Break-even analysis.

expected to receive from a strategy.
Different approaches to assessing

return:
Financial analysis.
Shareholder value analysis.
Cost–benefit analysis.
Real options.

value

strategic and financial evaluation closer together.
Valuing emerging options.
Coping

with uncertainty.
Offsetting conservatism.

can be used to:
understand the political context of

strategies.
understand the political agenda.
gauge the likely reaction of stakeholders to specific strategies.
If key stakeholders find a strategy to be unacceptable then it is likely to fail

could work in practice i.e. whether an organisation has

the capabilities to deliver a strategy
Two key questions:
Do the resources and competences currently exist to implement the strategy effectively?
If not, can they be obtained?

and forecasting.
Financial strategies needed for the different ‘phases’ of

the life cycle of a business.

Financial strategy and the business life cycle

in the organisation currently have the competences to deliver

a proposed strategy?
Are the systems to support those people fit for the strategy?
If not, can the competences be obtained or developed?

be considered:
Work organisation – will this need to change?
Rewards

– are the incentives appropriate?
Relationships – will people interact differently?
Training and development – are current systems appropriate?
Staffing – are the levels and skills of the staff appropriate?

the management of many resource areas, for example:
people,
finance,
physical

resources,
information,
technology and
resources provided by suppliers and partners.
It is essential to integrate resources – inside the organisation and in the wider value network.

management judgement.
Consistency between the different elements of a strategy

is essential.
The implementation and development of strategies might reveal unanticipated problems.
Strategy development in practice – it isn’t always a logical or even rational process.