Smith Industry Case Study

SUCCESS CRITERIA
In the previous topics we read about the different directions of strategy development and the methods for strategy development. Now before we implement any of the directions and methods, we first need to assess that the specific strategic option that we have we selected, would fail or succeed.
“Success Criteria are used to assess the likely success of strategic option” (Gerry Johnson, Kevan Scholes, Richard Whittington 2005)
It is always important to evaluate the success criteria of a selected strategic option. In case an option is implemented without assessing its success criteria and if it fails in the future, it may incur huge losses for the organization leaving the company in the worst situation

To evaluate the suitability this strategic option smith industries uses the scenario planning tool.
Steps
1. Note down all the driving forces that have led smith industries to decide on acquiring the small company in India. (See the list of driving forces in the figure below). 2. Plot the driving factors based on the high impact it will make in the market expansion of the company in the Y axis and the level of uncertainty on the X axis. (In this case the numbers 1 to 8).
3. Select the two the driving forces having very high impact and a high level of uncertainty (the numbers 5 and 7).

4. Discuss the plausible futures for those specific driving forces.

(Harald Preissler 2014)

CONCLUSION: The discussion of all the plausible future scenarios gave smith industries a clear view on the acquisition of the small Indian company. Now the smith industry can easily decide whether to go for acquisition or to look for any other strategic options for