Research has shown that the following criteria are generally used for evaluating strategy options: <<image /static/files/MBI/Module%2011/scoreboardstrategicoptions.PNG width:500>> !Business Opportunity - Size the prize The 'prize' to aim for can contain a number of elements: * Increase in market share * Increase in customer share * Access to new markets or distribution channels * Maintaining or increasing prices * Increasing margins * Increasing business process efficiency * Increasing appropriability of revenues * Increasing the economic value added * EEtc. Each opportunity can represent an increase of 1) revenue, 2) reduce costs or 3) both !Competitiveness - Can we win? # Often a strategy is developed solely by //''Looking at opportunities and threats''// # Another dimension is to ''//seek a competitive advantage to build//''. Does it provide a small or substantial improvement to the existing advantages? Will you look at the current arena or new ones? (See also [[Strategic game-board]]) # The third criterion is to ''//Look at the sustainability of the created competitive advantage//'' * Feasibility - Can we do it? # Choosing the right moment ## The concept of the [[The Tipping Point]] may be applied in organizational decision making in times of inertia. A good metaphor is for inducing change is the game of domino. Is the heaviest 'domino' (senior management) ready to fall over? # Resource requirement ## To what degree must core processes be changed? # Flexibility ## What opportunities remain to adjust after the projects are implemented? # Team ## The quality of the team that proposes the strategic options is crucial: are the people heavyweight or lightweight? !Leverage Critical options to consider leverage effects are: # Future spin-offs which may follow from this investment # Potential business opportunities outside the business unit to other business with the same corporation # The negative spill overs within the business or across business which may follow from investment in the project.