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Discuss the three guidelines that good contingency plans should follow.

Question 1

Through the use of strategic alternatives, companies may compete in a marketplace, achieve its vision, or if no vision has been articulated, decide where it might go and what it might achieve. Strategic alternatives do not consist solely of strategies, but rather bundles. Explain what elements comprise strategic-alternative bundles and why creating more than a few bundles is extraordinary difficult. Describe the six criteria that strategic-alternative bundles should meet and discuss why it is essential that good bundles have addressed all of the key strategic issues.

 

Question 2

Due to the changing environment and external triggers, contingency planning is necessary. What qualities make a future issue a “trigger”? Consider you are on the strategic planning team for a soft drink company. Here is your company’s future trigger: “merger of our two major competitors next year”. Formulate the three-part trigger/contingency pair. Discuss the three guidelines that good contingency plans should follow.

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