MODULE 5 MAKING STRATEGIC CHOICES

MAKING CHOICE OF STRATEGIC OPTION(MOSULE 4) FOR GROWTH USING VARIOUS

METHODS LIKE EVAKUATION, RISKS, PORTFOLIO, COST BENEFIT, WHAT IF, RUMELTS,
RATIONAL DECISIONS, RECOMMENDATIONS
EVALUATION OF STRATEGIC OPTIONS
MODULE CONTENT PG NO.
MODULE 5 Preview - rational approach 5.03
MODULE 5 Objectives 5.03
MODULE 5 Evaluating options - strategic fit and strategic rationale 5.04
MODULE 5 Evaluation criteria of product and market 5.04
MODULE 5 Evaluation template fig 5.1 5.05
MODULE 5 Explanation for evaluation criteria 5.05
MODULE 5 Degussa new b'ness development 5.07
Portfolio considerations - definition, resource allocations, project
MODULE 5 selection and strategy 5.08
MODULE 5 Issues for portfolio mgmt 5.09
Four key goals of portfolio mgmt by cooper and edgett (value
maximisation, balance, strategic direction and getting the right no.
MODULE 5 of projects) 5.09
MODULE 5 Mapping portfolio fig 5.3 pg 5.10 by cooper R. Edgett 5.1
Distinction between Cooper model of portfolio and BCG model
MODULE 5 5.1
Understanding Risks by Hubbard - conservative approach see
MODULE 5 downside 5.11
MODULE 5 Types of risks 5.11
MODULE 5 Strategic risks fig 5.4 5.12
steps (5) of risk assesment --from traditional to strategic pg 5.12
MODULE 5 5.13
Quantifying costs and benefits and what-If analysis cost benefit
MODULE 5 analysis 5.14
MODULE 5 Timing considerations 5.15
MODULE 5 The risk of doing nothing 5.15
MODULE 5 Specific risk for market development 5.16
Evaluating Strategic options - by Rumelts criteria four components

MODULE 5 external, internal consistency, feasibility, competitive advantage 5.17

MODULE 5 External consistency 5.17
MODULE 5 checklist for external consistency fig 5.6 5.18
MODULE 5 Internal consistency and its checklist fig 5.7 5.2
MODULE 5 Feasibility and its checklist fig 5.8 5.21
MODULE 5 Competitive advantage and its checklist fig 5.9 5.22
MODULE 5 Recommendations making to key decision makers 5.25
MODULE 5 Rational decision making 5.26
MODULE 5 Criteria for rational decision making by Harsanyi 1986 5.26
MODULE 5 Model of rational decision making by Davis J & Devinney 5.27
MODULE 5 Decision making vary from rational - reasons by Haryansi 1986 5.27
 MODULE 5 BY NAMES OF AUTHORS

AUTHOR TOPIC Pg. No.

Broring S & Herzog P Degussa new business development 5.8
Cooper R. & Edgett 2001-2008 Four key goals of portfolio mgmt 5.9
Cooper R. & Edgett 2006 mapping of portfolio mgmt 5.1
Hubbard 2002 understanding risks conservatism approach 5.11
Hubbard 2004 eg. Of rio tinto 5.11
Slywotzky A 2008 strategic risks 5.12
Slywotzky A 2008 Risk assessment 5 steps 5.13
Rumelts mintzberg and Quinn 1996 Evaluation criteria for strategic options 5.17
Haryansi 1996 Criterias for ratioanl decisions 2.26
Davis J & Devinney T 1998
forster J Brownie model for ratioanl decision making 5.27
 MODULE 4 PRODUCT AND MARKET DEVELOPMENT
STRATEGIC OPTIONS FOR GROWTH/GROWTH STRATEGY
MODULE CONTENT PG NO.
MODULE 4 Preview 4.03
MODULE 4 Product and market options (Ansoffs 4 and other 2- total 6)(4+2) 4.05
MODULE 4 Product market matrix by Ansoff 4.05
MODULE 4 Ansoffs product mkt matrix classification fig 4.1 (total 4 ways) 4.05
Growth in existing products and markets - market penetration (1)
MODULE 4 mostly when orgn is in start up or growth stage of life cycle. 4.07
Ways of achieving greater market penetration-incr. usage of existing
MODULE 4 costomers 4.07
MODULE 4 Questions used for increase share of existing customers 4.07
MODULE 4 Example 4.1 for market penetration fords diff types of models 4.08
Mkt penetration is product enhancement only or continuous
improvements. Diff betweeen mkt penetration and product
MODULE 4 differentiation(generic strategy module 5). (Study group) 4.09
MODULE 4 Product development- new products for existing mkts (2) 4.09
Product development- closely relate to existing products, low risk,
adding product feature or refinements, new packaging or pack size,
MODULE 4 different flavours, new technology 4.09
MODULE 4 Ways of occurrence of related product development 4.09
MODULE 4 Cross selling to existing customers by banks (product dev) ###
MODULE 4 Eg 4.2 ford different types of cars (size) not model ###
MODULE 4 Market development- existing products for new mkts (3) 4.11
MODULE 4 Unrelated diversification (4) (diff from differentiation) 4.14
Unrelated diversification- exhausted all other growth opportunities i.e.
(1, 2 & 3), moving into completely diff industry, high risk (diff from
MODULE 4 related diversification) 4.14
Situation where unrelated diversification is appropriate - counter

MODULE 4 seasonal diversification and counter cyclical diversification 4.14

MODULE 4 Baking soda case study 4.1 (study group) (Arm and Hammer) 4.15
MODULE 4 Product range and product line meaning and diff 4.15
Other approaches to products and mkts-(total 2)(other than Ansoffs 4)
MODULE 4 (so total 6 = 4+2) 4.16
MODULE 4 Solutions not products or services (1) solution that meets needs 4.16
MODULE 4 Vertical Integration (2) up/backward or down/forward integra.. 4.17
MODULE 4 advantages of vertical integration 4.17
MODULE 4 risks/dis adv. associated with vertical integration 4.17
New Product development (again in more detail) may be for fast
MODULE 4 moving industries 4.18
Ways for being successful and reasons for new product development
MODULE 4 by Ettore 1995 (also on pg 4.19) 4.18
MODULE 4 Causes of Failure of new product development 4.19
 Critical factors for successful development of products by Cooper and
MODULE 4 Kleinschmidt 2000 4.19
MODULE 4 Mining for new product successes by Magrath 1997 ###
stages of new product development process - idea generation, etc..
MODULE 4 Generic or acquisition ###
Linking new product development projects to strategy - consistency,
alignment, strategic choice about resource allocation, dimensions upon
MODULE 4 which projects can be scored 4.21
MODULE 4 dimensions upon which projects can be scored 4.21
Portfolio of projects balanced portfolio (not balanced scorecard
MODULE 4 method) 4.22
strategic capability of new product development- before competitor,

MODULE 4 cheaper, price corridor of mass by kim & mauborgne 2000 4.22
MODULE 4 Intellectual property and new product development 4.23
MODULE 4 Intellectual property rights - Infringements, multiple layers 4.23
MODULE 4 Intellectual property rights - Protection 4.23
MODULE 4 Counterfeit products 4.24
Key success factors for new product development by Drake 2006
MODULE 4 compare with pg 4.19 by cooper 4.25
MODULE 4 New market development (again in more detail)(total 2) 4.25
MODULE 4 Basis for entering new mkt table 4.1 (by Lasserre) 4.25
Expanding into new customer markets eg wholesaler, retailers, super
MODULE 4 mkt, etc (1) 4.26
Expanding into new geographic mkts (2) and its strategic reasons
MODULE 4 4.26
MODULE 4 Development of new geographic mkts (in more detail) 4.27
MODULE 4 International growth options fig 4.3 by De Wit & Meyer R 2005 4.28
MODULE 4 Objectives of mkt entry - timing, modes, scale 4.28
MODULE 4 Strategic objectives of mkt entry by Lasserre P. 2003 4.29
MODULE 4 Market attractiveness- Qs size growth profitability ###
Factors relevant for potential new mkts apart from size growth & profit
(part of mkt attractiveness)obsolence & leapfrogging, prices,
MODULE 4 substitution 4.31
How the product will get to mkt (part of mkt attractiveness)
MODULE 4 distribution and value proposition 4.31
Capabilities reqd to enter mkt (part of mkt attractiveness) resources,
MODULE 4 capacity, service 4.31
Standard approach to compare mkt alternatives by Lasserre 2003
MODULE 4 4.31
Mkt development resources - data. Global and Regional resources
MODULE 4 Appendix 1 4.33
MODULE 4 Issues/potential diff for expanding into new international mkt 4.33
MODULE 4 Effective entry strategy
MODULE 4 Researching and selecting new geographic mkts indicators 4.35
MODULE 4 Doing business relative competitiveness of diff countries 4.36
MODULE 4 Timing of entry- demand exist, first mover, premature mkt 4.36
MODULE 4 Key success factors for new mkt development 4.37
MODULE 4 Accounting issues in global strategy (total 6) (international) 4.38
Foreign exchange risks (1) - foreign durrency transactions IAS 21, diff
MODULE 4 methods of expansion 4.38
MODULE 4 Multiple sets of a/cs (2) - diff a/cing year 4.39
Incompatible IT systems (3) factors for data integrity, diff a/cing
MODULE 4 package ###
MODULE 4 Varying business conduct standards (4) diff co's act, etc 4.41
MODULE 4 Taxation of revenues (5) - diff rates, etc 4.42
MODULE 4 Transfer prices (6) - arms length, etc 4.44
Modes of entry into new geographic mkt - ownership and inv.. Diff 4.45
modes like exporting, licensing, franchising, JVs, strategic alliances, to
MODULE 4 M&A, wholly owned, acquisition, greenfield 4.56
MODULE 4 Comparision of diff modes of entry (advantages & dis adv) 4.57
 MODULE 4 PRODUCT AND MARKET DEVELOPMENT
STRATEGIC OPTIONS FOR GROWTH/GROWTH STRATEGY

AUTHOR TOPIC Pg. No.

Ansoffs 1987 Product market matrix 4.05
Ettore 1995 New product development 4.18
factors for successful development of products
Cooper and Kleinschmidt 2000 4.19
Magrath Mining for new product successes 4
Price corridor of mass strategic capability of new
kim & mauborgne 2000 product development 4.22
World intellectual property
organisation (WIPO) Definition of IP (IP and new product dev..) 4.23
Drake 2006 key success factors for new product dev.. 4.25
Lasserre Basis for entering the market 4.25
Melin 1992 Expanding into new geographic mkts 4.27
Development of new geographic mkt
De wit & Meyer R 2005 International growth options fig 4.3 4.28
Lasserre P. 2003 Strategic objectives of mkt entry
standard approach to compare mkt alternatives
Lasserre P. 2003 4.31
World bank and OECD Benchmarking and indicators - research 4.35
Doing business relative competitiveness of diff countries 4.36
Lasserre P. 2003 Timing of entry 4.36
Dunning 1981 Key success factors new mkt dev.. 4.37
Alfred chandler Key success factors new mkt dev.. 4.37
Foreign currency transactions - a/cing issues
IAS 21 4.38
 MODULE 6 LEADING AND IMPLEMENTING STRATEGY

MODULE CONTENT PG NO.

MODULE 6 Preview 6.03
MODULE 6 Objectives Qs 6.04
Overview of Strategy Implementation - accountants role in centre
MODULE 6 6.04
challenges of implementing strategy or reasons for failure or under
MODULE 6 achievement of strategy implementation. Total 5 6.06
MODULE 6 Transforming strategic thinking into action (1) 6.06
3Cs of communication, commitment and co-ordination - failure (2)-
unaware employees so communication so gaining understanding and
commitment, Resistance to change, lack of co-ordination and
MODULE 6 alignment 6.07
MODULE 6 Information systems and Organistion strategy 6.08
Poor co-ordination and misalignment by Hrebiniak's 2006 - lack of

model to guide conflicting decisions, unclear responsibility and

MODULE 6 accountability for implementation, lack of support. 6.08

Paralysis by analysis (3) - too much focus on analysis and formulation
rather than resources and operation/implementation,
training/teaching on formulation rather than implementation, too
MODULE 6 much emphasis on planning. 6.08
Politics and Resistance (4) - explicit and implicit plans and reality
MODULE 6 6.09
Resistance (4) - resistance/against implementation due to status, etc
MODULE 6 - organisational or individual level 6
Organisational resistance - factors- strategic inertia, limited
MODULE 6 implementation focus, group inertia, power relationships 6
Individual level factors - habits and security, economic factors,
MODULE 6 selective information processing 6.11
MODULE 6 Environmental uncertainity (5)
MODULE 6 How to implement strategy (total 10) 6.12
Strategic planning(done in module 1 or 2) for implementation (1)
MODULE 6 6.12
Strategic implementation planning process- four steps process-
articulation of mission/vision, translation of vision into measures-
financial/non financial, making implementation plan, ongoing
MODULE 6 monitoring and adaptation 6.12
MODULE 6 role of CPAs/accountants in strategic implementation (2) 6.14
7S model of implementation by peters and McKinsey (3)- strategy,
MODULE 6 structure, staff, system, skill, shared value, style 6.16
MODULE 6 Using the 7S model (Qs) 6.17
8th S - strategic performance by James Higgins 2005 - aligned and
MODULE 6 non aligned 8 S 6.18
 Perfoemance management (4) - effective performance mgmt
requires foll by the leaders, balanced scorecard - is performance
MODULE 6 mgmt tool 6
Balanced scorecard - performance mgmt tool - its top down
MODULE 6 approach - has four steps and four perspectives 6
BSC - four steps/processes - translating the vision, communicating

MODULE 6 and linking, b'ness planning, and feedback and learning 6.21
BSC - four perspectives - customer, internal process, learning and
MODULE 6 growth, financial 6.21
BSC - financial perspectives - short term/backward looking and long
MODULE 6 term/forward looking 6.22
MODULE 6 Reward Systems (5) 6.22
MODULE 6 Information systems (6) - advantages/imp 6.23
MODULE 6 Managing teams (7)
Culture - Managing Culture (8) - developing a strategy supportive
MODULE 6 culture and managing across culture 6.25
Culture - Definitions, developing strategy supportive culture - i.e. fit
MODULE 6 between culture and implementation of strategy 6.25
MODULE 6 Hallmarks of effective culture 6.26
Issues of culture relevant to the implementation process - intergroup
conflicts, ineffective communication, consensus on change,
MODULE 6 consensus on criteria for measuring results, etc 6.26
MODULE 6 across/internationational cultures management - 6.28
Hofstede's cultural dimensions/framework for examining national
culture dimensions - power distance, individualism v/s collectivism,
masculinity v/s femininity, uncertainity avoidance, long term v/s
MODULE 6 short term - applications and criticisms of hofstede's study 6.28
MODULE 6 Application of Hofstede's study 6.33
MODULE 6 Criticism of Hofstede's study 6.33
Design - Organisational design (9) - orgn structure, types of structure
MODULE 6 6.35
Structure - factors which determine optimal structure - strategy,
MODULE 6 environment, technology, size, people and culture 6.35
MODULE 6 Structure types - three main components of orgn structure 6.36
Design -Principles of organisation design - centralised v/s
MODULE 6 decentralised, mechanic v/s organic systems 6.37
Politics of strategy implementation management (10) (politics is also
MODULE 6 a challenge as disscussed earlier) 6.39
MODULE 6 Power and politics 6.39
MODULE 6 role of leaders in managing politics 6
MODULE 6 politics (orgn ) is double edged sword 6
MODULE 6 Tactics for managing interpersonal politics and conflict 6
MODULE 6 Leading the implementation of strategy (total 5) 6
MODULE 6 nature of strategic leadership (1) 6
Hierarchy of leadership - individual, team member, manager, leader,
MODULE 6 executive 6
MODULE 6 Importance of leadership in change management (2) 6
MODULE 6 Change management matrix - to determine scale of change 6
MODULE 6 Strategic leadership style (3)
style of leadership and orgn life cycle - start, growth (risk taker),

MODULE 6 maturity (risktaker), shake out (surgeon), decline (undertaker) 6

Transformational leadership and transactional leadership - orgn
development and orgn transformation- Dunphy and stance - change
MODULE 6 matrix 6
Strategic change matrix by Dunphy and Stance - Scale of change and
style of change management - fine tuning, Incremental adj., modular
transformation, corporate transformation - coercive, Directive,
MODULE 6 Consultive, Collabarative 6
Role of leaders in strategic implementation process (4) -(total a-e)
Strategic thinking, strategic analysis, Setting direction, strategy
MODULE 6 development and selection, implementing strategy 6
MODULE 6 strategic thinking (a)- balancing stability and change
strategic analysis(b) - external analysis, key external stakeholders,
MODULE 6 internal analysis, key internal stakeholders 7
MODULE 6 Setting direction (c)- visionary leadership 7
MODULE 6 strategy development and selection (d) 7
implementing strategy (e)- imp, min req, communication,
communication the vsion and strategy, key areas- current and
MODULE 6 recommended, Qs for effective communication 6.56
MODULE 6 Communication - (also in challenge) 6.56
Resistance and change -Overcoming resistance and cementing

change in an orgn (5)- Reasons for resistance to change(also in

MODULE 6 challenges) - technical reasons, political reasons, cultural reasons 6.59

MODULE 6 Future challenges - the pace of change 6.59
MODULE 6
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6.08
 pending
AUTHOR TOPIC Pg. No.
Hrebiniak and Joyce Implementation is more imp than formulation of
2008 strategy 6.04
Kalpan & Norton 3Cs of communication - employees r not aware so no
2005 commitment so failure of implementation 6.07
3Cs of communication - obstacles to effective
Hrebiniak 2006 implementation - change manegement 6.07
Neilson 2008 3Cs - orgn strategy and information system 6.08
Hanson 2008 kelloggs co case 6.08
Hrebiniak 2006 Poor co-ordination and misalignment 6.08
Camillus 2008 Environment uncertainity 6.11
Environment uncertainity- strategy implementation
Hrebiniak 2006 process must be adaptive 6.12
Role of CPAs/Accountants in strategy implementation
Thompson 2007 6.14
Skaerbaek & Role of CPAs/Accountants in strategy implementation
tryggestad 2009 6.14
doubts
is strategic planning diff from implementation plg
 MODULE 1
An introduction to Strategy and Leadership
Summary of all the modules

MODULE CONTENT PG NO.

MODULE 1 Preview 1.03
MODULE 1 Objectives 1.04
MODULE 1 Origin and Importance of strategy - harvard, military, 1.04
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module 1

Quinn (Mintzberg & Quinn 1996) Origin of strategy - strategia - military origin 1.04