6. Generate and Develop Options

Question 1

What are the 2 things to be considered when diagnosing an organisation’s starting position?

Answer 1

1. Where we are now in terms of SWOT
2. What resources and competencies we have to work with

Question 2

What does a resource audit do?

Answer 2

Help to reveal strengths and weaknesses, core competencies, company competitive position and analysis of value creation

Question 3

What 5 key things does a resource audit examine the position of?

Answer 3

1. Tangible + intangible resources
2. Core competencies
3. Products, trademarks, brands
4. Stakeholder relationships
5. Returns to shareholders

Question 4

What is strategic fit?

Answer 4

Having the right resources to take advantage of opportunities in the external environment

Question 5

What is strategic capability?

Answer 5

The ability to perform at a level that achieves objectives and fulfils the mission of the organisation (which changes over time)

Question 6

What are the elements of the 9 Ms model of resource audits?

Answer 6

1. Manpower
2. Money
3. Management
4. Machinery
5. Markets
6. Material inputs (supplier relationships)
7. Methods/processes used
8. Management information
9. Make-up (culture, intangibles)

Question 7

What are threshold competencies?

Answer 7

Capabilities necessary for the organisation to compete

Question 8

What 2 ways do we review competencies?

Answer 8

Environmental scanning and communication with stakeholders

Question 9

What are core competencies?

Answer 9

Activities and processes through which resources are deployed to gain a competitive advantage in ways that others cannot imitate or obtain

Question 10

What are unique resources?

Answer 10

Those which cannot be easily imitated or obtained by competitors

Question 11

Other than resources, what else should be evaluated when diagnosing an organisations starting position?

Answer 11

Value drivers

Question 12

What is foresight?

Answer 12

Rehearsing alternative futures for the organisation, assuming that actions today will shape the future

Question 13

What 4 things does foresight help with?

Answer 13

1. Overcoming vested interests
2. Expanding mindsets
3. Help employees form new strategic views
4. Help participants buy into or develop the organisation’s strategic vision

Question 14

What are the 5 Cs of foresight?

Answer 14

1. Communication
2. Concentration
3. Co-ordination
4. Consensus
5. Commitment

Question 15

What is forecasting?

Answer 15

The process of estimation in unknown situations

Question 16

What are the 3 main examples of forecasting techniques?

Answer 16

1. Correlation
2. Regression analysis (linear relationship)
3. Time series

Question 17

What is trend analysis?

Answer 17

Collecting information and attempting to spot a pattern or trend in the information

Question 18

What is trend extrapolation?

Answer 18

The assumption that the past will repeat itself

Question 19

When is trend extrapolation useful, and what particular technique is used?

Answer 19

In industries with seasonal fluctuations - time series analysis

Question 20

What is the Delphi method?

Answer 20

A systematic method for obtaining forecasts from a panel of independent experts, where repeated answering converges on one ‘correct’ answer

Question 21

What are the benefits of anonymity in the Delphi method?

Answer 21

1. Dont stick to previous statements - admit errors
2. Dont follow group ‘leader’/ dominate
3. Feel free to express opinions

Question 22

What does scenario planning do?

Answer 22

Describe a range of plausible scenarios and the action plans required if they occur - rehearsing the future

Question 23

When is scenario planning most useful?

Answer 23

In complex and dynamic environments

Question 24

What are the 10 steps of scenario planning?

Answer 24

1. Define scope of activities
2. Identify key stakeholders
3. Identify main trends
4. Identify uncertainties
5. Identify causes of disruption
6. Construct initial scenarios
7. Check consistency and plausibility
8. Reduce to 2/3 scenarios
9. Use scenarios to form strategy
10. Identify required resources

Question 25

What are the 4 main advantages of scenario planning?

Answer 25

1. Deeper understanding of environment 2. Indicates what needs to be monitored 3. Encourage environment scanning 4. Encourages creative thought

Question 26

What are the 4 disadvantages of scenario planning?

Answer 26

1. Expensive 2. May be a distraction from main business 3. May be difficult to act due to vested interests 4. Many scenarios won't come through

Question 27

What is visioning?

Answer 27

Seeing an image of the future which may be vague or out of focus, which becomes more concrete over time with a goal to come up with a plan to get us there

Question 28

What is morphological analysis?

Answer 28

Systematic investigation of all the components of large scale problems, products and processes using a matrix

Question 29

What is a relevance tree?

Answer 29

A systemised approach, starting with a clear goal, that traces the desired outcome back through trends and events to see what the organisation needs to do to achieve the desired outcome

Question 30

What are 4 alternative foresight techniques?

Answer 30

1. Issue analysis 2. Opportunity mapping 3. Cross impact analysis 4. Role playing

Question 31

What is the main learning from game theory?

Answer 31

The interdependence in decision making causes each player to consider the other player's possible decisions, or strategies, in formulating strategy - collaboration is required

Question 32

What are the 3 real options?

Answer 32

1. Follow on 2. Delay 3. Abandon