Kone - Monospace Launch In Germany

3. What factors should he consider in choosing the" best" strategic option?

Gary's strategy should best match his firm's resources and capabilities to the opportunities in external environment. Defining the firm in the terms of what it is capable of doing may offer a more durable basis for strategy than a definition based upon the needs that the business seeks to satisfy.

Gary has to look at the fact that his firm was started with an aim of providing quality service and health to customers. Now, he is looking at the market from the resource point of view. But, a resource which caters to a changed market is different. Therefore, First-fitness strategy will be based on developing and exploiting internal capabilities to adjust and exploit external change (figure 8).

Establishing competitive advantages involves formulating and implementing a strategy that exploits the uniqueness of a firm's portfolio of resources and capabilities. He can learn from Competitor's success, but attempts to replicate their strategies mindlessly.

Gary has to look at his firm's resources (figure 7) and assess the decision criteria using the decision group dynamics (figure 8). He has to consider the risk Ð'-reward trade-off in,

Ð'* Financial criterion

o Are the paybacks in the near future

o Are the profits reasonable

o Is the profitability and cash flows appropriate

o What are my Ð''Real Options'

Ð'* Emotional

o Am I satisfied with the option

o Is it consistent with