Suitability/Feasibility/Acceptability
(JOHNSON & SCHOLES)
Consistency/Consonance/Advantage/Feasibility
(RUMELT)
|
Test |
SouthCo (Contract manufacturer) |
Nextron (Joint Venture) |
IDJ (Joint Venture) |
WOFE |
Remarks |
|
Suitability: Consistent with & fulfils Key Success factors? Overcomes identified weakness/threat? Capitalises on Res & Cap in relation to opportunities? Fits objectives |
Yes Yes Yes Yes |
Yes Yes Yes Yes |
Yes Yes Yes Yes |
Yes Yes Yes Yes |
Differentiation/Specialisation/Customisation Need to manufacture in China Customer relationship/Flexibility XTech shall operate in Asia! |
|
Feasibility: Can strategy be resourced? Can required outcome be achieved? Will competition reaction be of concern? |
Yes? Yes No |
Yes? ($2M) Yes No |
Yes? ($200k) Yes No |
Not known Yes No |
Amount of funds avail not quantified Need to manufacture in China Manufacturing in China is industry trend |
|
Acceptability: Is financial risk unacceptable? Is there a risk to stakeholder relationships? How will it affect internal systems & procedures? |
No Yes Minimal -- |
No Yes Minimal -- |
No Yes Minimal -- |
No Yes -- Yes |
Opportunities outweigh risks Employee fear of headcount reduction Failure will affect customer relationship Extension of existing situation with Allied Will require new systems & procedures for ROFE |
|
Consistency: Are goals mutually consistent? |
Yes |
Yes |
Yes |
Yes |
Fits with strategy and is clear and consistent |
|
Consonance: Is strategy in agreement with external trends? |
Yes |
Yes |
Yes |
Yes |
Industry trend is for manufacture in China |
|
Advantage: Is competitive advantage created/maintained? Resources? Skills? Position? |
Yes Yes Yes No |
Yes Yes Yes Yes |
Yes Yes Yes Not Known |
Yes Yes Yes Not known |
Increases available resources Relies on skills of XTech in development. Offers new skills from partner. Market position in China? |
|
Feasibility: Can strategy be resourced? Money & capital? Management, professional & technical resources? Time span? |
Yes Yes? Yes <12mths |
Yes Yes? Yes <12mths |
Yes Yes? Yes <12mths |
Yes Yes? Yes >12mths |
Amount of funds avail not quantified XTech (Constanza)/Partner experienced in China Not quantified in case study – IDJ/Meng suggest over 12 months for JV without local agent |