FAQ
Alternatives
Note that these responses are not official additions to the theory, only explanations for the cases based on the specific questions received.
Does an alternative need to meet all the requirements for a recommended strategy?
Yes. Every alternative MUST have all of the following characteristics:
- Specific, absolutely no theories or generic strategies.
- Actionable. Something that can be done. Not a study or research.
- A business or corporate strategy. Not something functional.
- Long-term (3 to 5 years).
Can I use acquire a specific competitor as a strategy. I know you said in class that acquisition is not a strategy, but it is in your example on the handout alternatives versus opportunities.
Acquire a competitor by itself does not meet the requirements of a strategy (see above). An acquisition can be a PART of an alternative (as it is in the Wal-Mart example). The alternative needs to state the strategic why, not just the "acquire," which is how to implement. Re-read the Wal-Mart example.
Is issuing more shares of stock an acceptable alternative?
No. This is a functional (finance) strategy. Alternatives must be long-term business or corporate level strategies and need to meet the requirements for such strategies.
Should the strategy that I am aiming for be straight from the case or should I be thinking of my own new creative strategy?
It could be suggested in the case or could be created by you. Typically, even those suggested in the case are not clearly stated in the case.
- Last revised 1/09/2009 -