2.1 Considerations to evaluate a strategic option
Once the strategic decision makers have made a selection of potential strategies, they need to evaluate these options to choose the most appropriate strategy or combination of strategies (Louw & Venter, 2013:280). In the case of The Impala Platinum mine case study, the content of the overall cost leadership strategy chosen need to be evaluated for its contribution to the organisation’s objectives as recommended by (Louw & Venter, 2013:280). Because organisations are unique entities, strategic decision makers may develop their own set of criteria to evaluate the strategy options (Louw & Venter, 2013:280). Three considerations (appropriateness, feasibility and desirability) were offered to evaluate …show more content…
Feasibility- feasibility means “that the organisation is capable of carrying out the proposed strategies” (Louw & Venter, 2013:283). When testing a strategy for feasibility, the organisation evaluates it in terms of the finance and resource availability, its ability to meet the industry and customer demands, and whether the strategy can lead to and / or sustain competitive advantage (Louw & Venter, 2013:283). An organisation may lack the technical skills for the strategic option, or the success of the strategic option may depend on the government approval (Louw & Venter, 2013:283). For example, when Telkom Media considered the strategic option to diversify into the pay television market, feasibility of this strategy was dependant on the granting of a broadcast license by ICASA (Louw & Venter, 2013:280). Because of the uncertainty with regard to the granting of this license, then CEO, Reuben September, decided not to follow this strategy (Louw & Venter, …show more content…
Consistency- Consistency is considered when an organisation looks at whether the strategy option is in accordance with the strategic intent and objectives of the organisation, for example, Telkom’s strategic direction is to be a leading customer- and employee centred information communication and technology (ICT) solutions service provider (Louw & Venter, 2013:284). Diversifying into the pay -TV may be a strategic option, but it is not consistent with Telkom’s overall strategic intent and objectives (Louw & Venter, 2013:284). If an option is not consistent the organisation has two options, it can either change its strategic intent and objective or it can reject the option (Louw & Venter, 2013:284). If the organisation has carefully considered the strategic intent and developed it through the consultative process of stakeholder engagement, the option to reject the strategy is the most likely course of action (Louw & Venter,
Once the strategic decision makers have made a selection of potential strategies, they need to evaluate these options to choose the most appropriate strategy or combination of strategies (Louw & Venter, 2013:280). In the case of The Impala Platinum mine case study, the content of the overall cost leadership strategy chosen need to be evaluated for its contribution to the organisation’s objectives as recommended by (Louw & Venter, 2013:280). Because organisations are unique entities, strategic decision makers may develop their own set of criteria to evaluate the strategy options (Louw & Venter, 2013:280). Three considerations (appropriateness, feasibility and desirability) were offered to evaluate …show more content…
Feasibility- feasibility means “that the organisation is capable of carrying out the proposed strategies” (Louw & Venter, 2013:283). When testing a strategy for feasibility, the organisation evaluates it in terms of the finance and resource availability, its ability to meet the industry and customer demands, and whether the strategy can lead to and / or sustain competitive advantage (Louw & Venter, 2013:283). An organisation may lack the technical skills for the strategic option, or the success of the strategic option may depend on the government approval (Louw & Venter, 2013:283). For example, when Telkom Media considered the strategic option to diversify into the pay television market, feasibility of this strategy was dependant on the granting of a broadcast license by ICASA (Louw & Venter, 2013:280). Because of the uncertainty with regard to the granting of this license, then CEO, Reuben September, decided not to follow this strategy (Louw & Venter, …show more content…
Consistency- Consistency is considered when an organisation looks at whether the strategy option is in accordance with the strategic intent and objectives of the organisation, for example, Telkom’s strategic direction is to be a leading customer- and employee centred information communication and technology (ICT) solutions service provider (Louw & Venter, 2013:284). Diversifying into the pay -TV may be a strategic option, but it is not consistent with Telkom’s overall strategic intent and objectives (Louw & Venter, 2013:284). If an option is not consistent the organisation has two options, it can either change its strategic intent and objective or it can reject the option (Louw & Venter, 2013:284). If the organisation has carefully considered the strategic intent and developed it through the consultative process of stakeholder engagement, the option to reject the strategy is the most likely course of action (Louw & Venter,