Chapter 6

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Questions and Answers

What are the 3 key success criteria used to assess the viability of strategic options?

Adaptability, Availability, Acceptance

Flexibility, Functionality, Fulfillment

Efficiency, Effectiveness, Excellence

Suitability, Feasibility, Acceptability (correct)

Which type of analysis is used to assess whether a strategic option adapts to the mission, objectives, and key strategic issues underlined by the strategic analysis?

Suitability (correct)

Feasibility

Acceptability

Internal analysis: Strengths and weaknesses

Which elements are assessed for suitability of the strategic option

Mission, objectives, internal analysis, external analysis (correct)

Adaptability, objectives, internal analysis, external analysis

Feasibility, mission, objectives, external analysis

Mission, risk, internal analysis, external analysis

How do you assess the suitability of a strategic option?

Strategic model: theoretical, logical reasoning and empirical evidence: relates strategies and results Signup and view all the answers

Which definition refers to the strategy evaluation and criteria of feasibility?

refers to the real possibility of implementation, which is also related to the concept of organisational fit Signup and view all the answers

What does feasibility refer to in the context of strategy evaluation?

The practicality and organizational fit of a strategy Signup and view all the answers

How is acceptability measured in the context of strategy evaluation?

Based on stakeholder expectations and returns Signup and view all the answers

How do you assess the feasibility of a strategic option?

Resources and capabilities available that are necessary (financial feasibility and other r&c) and organisational fit: consistency strategy - organisational Signup and view all the answers

What does acceptability refer to?

To measures the consequences of adopting specific strategy whether or not its expected outcomes are acceptable to the various stakeholder Signup and view all the answers

What should be asked/questioned when looking at the acceptability of a strategic option?

Does the strategy improve stakeholders current situation Signup and view all the answers

Which elements are assessed for acceptability of the strategic option

Performance/value creation, risk (financial, political), stakeholders (identification, analysis, negotiation) Signup and view all the answers

What is the Balanced Scorecard?

A method of measuring strategy performance through financial, customer, internal business process, and learning and growth perspectives. Signup and view all the answers

Which elements are assessed for feasaibilty of the strategic option

Availability of R&C and problems of implementation Signup and view all the answers

In the context of strategy evaluation, what does feasibility refer to?

Assessing resource availability Signup and view all the answers

Which perspective is NOT included in the Balanced Scorecard for measuring strategy performance?

Innovation Signup and view all the answers

Both deliberate and emergent strategies take place within firms

True Signup and view all the answers

Evaluating entry strategies in external markets: strategic alternatives such as exports, joint ventures and own subsidiaries. Match the following...

suitability = High country risk would make exports suitable, but not the creation of a subsidary feasibility = whereas exports require little investment, the incorporation of a subsidiary requires tying up large volume of resources. the non-availability of these resources may imply the second option becomes hardly feasible acceptability = assess expected returns on the investment, reaction of local authorities and cultural shock of employees NA = NA Signup and view all the answers

Which outlines what is included in strategic implementation

design of the organisational structure, management and leadership style and organisational culture, strategic planning and strategic control Signup and view all the answers

Strategic planning is a decision-making process that is useful to determine how the strategy will be pursued in the future: the nature of the tasks to be performed, when they will be undertaken and by whom, the activities to be allocated to each program, etc.

True Signup and view all the answers

Match what you think is correct

Typical strategic plan = Mission, goals, objectives statement Typical strategic plan = enviromental and organisational analysis Typical strategic plan = proposed strategy and resources Not included in typical strategic plan = long-term contract Signup and view all the answers

What is not an advantage of a strategic plan

low development costs and risk Signup and view all the answers

Match the following that you think are correct in terms of the strategic plan:

Advantage = defines implications for managers Advantage = forces to think about the main issues affecting strategic formulation and implementation Disadvantage = costly Disadvantage = excessive bureaucracy Signup and view all the answers

Which is not a disadvantage of a strategic plan

loss of autonomy Signup and view all the answers

Which one is not correct about strategic control

Decision-making process that is useful to determine how the strategy will be pursued in the future: the nature of the tasks to be performed, when they will be undertaken and by whom, the activities to be allocated to each program Signup and view all the answers

Below are the necessary parts of the strategic control. Match up what is correct

measuring the outcomes = qualitative and quantitative strategic audit = evaluates the areas affected by the strategic management process within an organisation. Check if the measured performance compares to the standards qualitative measurements = assessment based on subjective data quantitative measurements = assessment based on the identification of indictors that may be scored statistically or mathematically Signup and view all the answers

What are the four main headings/topics of the balanced scorecard? What is looked at in each of them?

Financial, customers, internal business process and learning and new growth. The objectives, measures, targets and initiatives are looked at in each. Signup and view all the answers

Study Notes

Strategic models are used to evaluate and select business strategies based on theoretical models and empirical evidence.
Strategy evaluation criteria and selection techniques include feasibility, acceptability, performance, and external analysis.
Feasibility refers to the practicality and organizational fit of a strategy.
Acceptability measures the desirability of a strategy based on stakeholder expectations and returns.
External analysis considers the strategic context and alternatives, such as exporting or joint ventures, and their suitability.
Strategic planning is a process to determine how to implement a strategy, including setting goals and objectives, analyzing the environment, and allocating resources.
Strategic planning advantages include providing a framework for decision-making and allocating resources, but it can be bureaucratic and costly.
Strategic control is the process of monitoring and evaluating strategy implementation, which includes controlling outcomes and using tools like the Balanced Scorecard.
The Balanced Scorecard is a method of measuring strategy performance through financial, customer, internal business process, and learning and growth perspectives.
Strategic models are used to evaluate and select business strategies based on theoretical models and empirical evidence.
Strategy evaluation criteria and selection techniques include feasibility, acceptability, performance, and external analysis.
Feasibility refers to the practicality and organizational fit of a strategy.
Acceptability measures the desirability of a strategy based on stakeholder expectations and returns.
External analysis considers the strategic context and alternatives, such as exporting or joint ventures, and their suitability.
Strategic planning is a process to determine how to implement a strategy, including setting goals and objectives, analyzing the environment, and allocating resources.
Strategic planning advantages include providing a framework for decision-making and allocating resources, but it can be bureaucratic and costly.
Strategic control is the process of monitoring and evaluating strategy implementation, which includes controlling outcomes and using tools like the Balanced Scorecard.
The Balanced Scorecard is a method of measuring strategy performance through financial, customer, internal business process, and learning and growth perspectives.
Strategic models are used to evaluate and select business strategies based on theoretical models and empirical evidence.
Strategy evaluation criteria and selection techniques include feasibility, acceptability, performance, and external analysis.
Feasibility refers to the practicality and organizational fit of a strategy.
Acceptability measures the desirability of a strategy based on stakeholder expectations and returns.
External analysis considers the strategic context and alternatives, such as exporting or joint ventures, and their suitability.
Strategic planning is a process to determine how to implement a strategy, including setting goals and objectives, analyzing the environment, and allocating resources.
Strategic planning advantages include providing a framework for decision-making and allocating resources, but it can be bureaucratic and costly.
Strategic control is the process of monitoring and evaluating strategy implementation, which includes controlling outcomes and using tools like the Balanced Scorecard.
The Balanced Scorecard is a method of measuring strategy performance through financial, customer, internal business process, and learning and growth perspectives.

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Test your knowledge on strategy evaluation criteria, selection techniques, and implementation in strategic management. This quiz covers topics such as suitability, feasibility, acceptability, and key success criteria used in the evaluation process.