Nghiệp vụ ngân hàng - Business strategy - Strategy evaluation

Nội dung text: Nghiệp vụ ngân hàng - Business strategy - Strategy evaluation

1. 6/12/2011 BUSINESS STRATEGY Strategy Evaluation Lecturer: PHD. PHẠM QUỐC KHÁNH Banking Academy (Vietnam) khanhhvnh@gmail.com Mobile: 0913210000 Strategy Evaluation Learning outcomes Strategic management process: External Audit Implement Generate, Implement Strategies: Measure & Vision Long-Term Evaluate, Strategies: Marketing, Evaluate & Objectives Select MIMgmt Issues Fin/A cct, PfPerformance Mission Strategies R&D, CIS Internal Audit 1
2. 6/12/2011 Strategy Evaluation Learning outcomes ƒ After finishing these chapters, you will understand: ƒ The concepts behind strategy evaluation. ƒ Evaluation techniques (systematic and rational approach to evaluating company strategic options). ƒ The importance of risk assessment in strategy evaluation. Strategy Evaluation Evaluation Strategy evaluation Ranking Risk and costs and uncertainty benefits 2
3. 6/12/2011 Strategy Evaluation Evaluation Suitability Evaliluation Acceptability to Feasibility stakeholders Strategy Evaluation 1. Evaluation • Suitability- Strategic logic. SUITABILITY EVALUATION MATRIX No Criteria/ requirement Your strategy for Apple Note 1Strengthand distinctive competences 2Fix weaknesses 3Deflect environment threats 4 Seize opportunities 5Satisfythe goals 6 Fill the gap 7 Generate competitive advantage 8Involvean acceptable of risks 9Suit politics and corporate culture 3
4. 6/12/2011 Strategy Evaluation 1. Evaluation • Feasibility- Whether the strategy can in fact be implemented. FEASIBILITY EVALUATION MATRIX No Organisational capacities Your strategy for Apple Note 1 Governance and leadership 2Human Resources 3 Financial Management 4External Relations and Partnerships 5 Technology 6 7 8 9 Strategy Evaluation 1. Evaluation • Acceptability to stakeholders ACCEPTABILITY TO STAKEHOLDERS EVALUATION MATRIX No Organisational capacities Your strategy for Apple Note 1 Financial considerations 2Customers 3Banks 4 Government 5The public 6Risk 7 . 4
5. 6/12/2011 Strategy Evaluation 2. Ranking costs and benefits Cost/ Ranking Ranking benefit and costs and analysis scoring benefits Strategy Evaluation 2. Ranking costs and benefits Ranking and scoring: • [?] A strategy can be assessed on how it achieves the organisation’s objectives, but some objectives may conflict and the choice may not be clear out. Give an example and identify possible solutions. 5
6. 6/12/2011 Strategy Evaluation 2. Ranking costs and benefits Ranking and scoring: • Objecti ves are wei gh ted i n rel ati ve i mportance. Agree the objectives Prioritise the objectives Define the act. and task Agree standards of performance Allocate roles Set and timetable performance criteria Strategy Evaluation Ranking costs and benefits Ranking and scoring: MATRIX FOR RANKING AND SCORING (Your strategy for Apple) Your options for strategy Objective Objective Objective No Score Ranking for Apple 1 2 3 1 Activities 1 2 Activities 2 3 Activities 3 4 Activities 4 5 Activities 5 6
7. 6/12/2011 Strategy Evaluation Ranking costs and benefits Cost/ benefit analysis (CBA): a systematic process flltidfor calculating and compar ibfitding benefits and costs of a project/ program for two purposes: (1) to determine if it is a sound investment (justification/ feasibility). (2) to see how it compares with alternate projects (ki/iiti(ranking/ priority assignmen t). Strategy Evaluation 2. Ranking costs and benefits Cost/ benefit analysis process: 1. Establish alternative projects/programs 2. Compile a list of key players 3. Select measurement & collect all cost & benefits elements 4. Predict outcome of cost and benefits over the duration of the project 5. Put all effects of costs and benefits in dollars 6. Apply discount rate 7. Calculate net present value of project options 8. Sensitivity analysis 9. Recommendation. 7
8. 6/12/2011 Strategy Evaluation 3. Risk and uncertainty • Types of risk and uncertainty: Physical Economic risk risk Financial Business risk risk Political risk Strategy Evaluation 3. Risk and uncertainty • Bank’s risks: Credit Liquidity Interest rate Insolvency Banking risks (banking book) Interest Market Currency Commodity Operational Equity • [?] List three risk for Apple in expanding operation in Vietnam 8
9. 6/12/2011 Strategy Evaluation 3. Risk and uncertainty • Risk appraisal in strategy evaluation: – Compare the estimated riskiness of different strategies for a company. MATRIX FOR RISK APPRAISAL Options for strategy for new No Riskiness airline in Vietnam 1 Cost leadership strategy 2 Differentiation strategy 3Focus strategy Strategy Evaluation 3. Risk and uncertainty • Sensitivities analysis: – Indentifying each variable factor in the calculation. – Assessing the effect on the result if the variable may up or down with x%. Quantity 706 1700 1800 1900 2000 2100 2200 2,700,000 (1,040) (779) (519) (258) 3 263 2, 800, 000 (631) (346) (61) 224 509 793 2,900,000 (221) 88 397 706 1,015 1,324 Price 3,000,000 189 522 855 1,188 1,521 1,854 3,100,000 598 955 1,312 1,670 2,027 2,384 3,200,000 1,008 1,389 1,770 2,151 2,533 2,914 3,300,000 1,417 1,823 2,228 2,633 3,039 3,444 9