BU481 Lecture : Set One Answer.docx

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24 Nov 2012
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Set one: according to the article evaluating strategic alternatives and the discussions in class, please define and describe in details the tests that should be used to assess and rank strategic alternatives. Each of the five test questions are critical to any strategy review because it measure the credibility of proposed strategy and to determine if the mgmt has confidence that the promised returns on investment will be realized. The test questions works better when there is rich array of strategic alternatives from which to choose. It gives managers a basis of comparison and enhances creativity by suggesting combinations of different strategies. Should be presented in a balanced view of the threats vs opportunity uncovered during the situation assessment. It can be applied to pest environment that will find the events and trends. Better market opportunity looks at all these criteria, higher long run average profitability of all players in mkt.

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