Welcome back, at this point in the Capstone Project you have passed the first milestone, which involves selected in organization, conducted a thorough analysis and using that analysis to identifying the key strategic issue the firm faces. >> So your next task is to identify what the firm might do to address this key strategic issue. We want you to think carefully about different options the firm might pursue in order to tackle the issue that you have identified. >> So for your next milestone we want you to identify three viable strategic paths the organization might take in order to rise to the challenge you've identified in your in your analysis. >> Now there's a few things to keep in mind. First of all, you might already have a good sense of what some of the good strategic options are based on the analysis you've already done. In other words, in analyzing the firm's competitive position, some of their options might already be apparent to you. >> For instance if the key challenge facing the firm is something like declining market share due to its competitors diversifying their product offerings. An obvious option might be for the firm it self to think about how it might also diversify. >> But that said, it is not enough to simply assert that therefore the firm should consider diversifying. We want you to go further and offer some specific recommendation about that particular strategic option. >> So to stick with this analogy, how exactly should you diversify, is the objective to offer the same array of products as the competitors? And if so, how would this help you? What are the risks involved? Do you have the capabilities required? >> Right, these are great questions. And it's important to continue to be analytical in the way you present and discuss the strategic options you are putting forward. >> And this leads to the second thing to keep in mind. While some ideas might arise directly from the analysis you've already done, a thorough treatment of a firm's strategic options may require some additional analysis. >> So this might require the use of additional tools and frameworks. For instance, if one of the options is to pursue a particular acquisition, for example, it might be helpful for you to run through an acquisition analysis to assess the viability of that particular option. >> So the bottom line is, we want you to identify three specific strategic options available to the organization. They need to be plausible strategic paths not something that would be obviously ridiculous. >> Right, so for example if the organization is really losing ground against a more successful market leader for instance. And maybe as a result of that it's in a difficult financial position, don't suggest as one of the options that the struggling firm that's failing should acquire the more successful firm. The options in other words need to be viable, they need to be believable. >> So your assignment is to identify three plausible strategic options. But don't stop there, you need to identify the pros and cons of each option. Discuss each one. Why does it seem like a good idea? What are the risks? >> Now if you're having trouble coming up with downsides, the option in question may be too good to be true. So be critical, think carefully about what could go wrong. Less effective analyses that we see, option oftentimes only talk about the upsides, but they ignore the strategic risks. >> Good luck identifying three strategic paths an organization could take and don't forget to discuss each one in detail, including both the competitive advantages and the strategic risks. >> And remember the key to all of this is integration >> What you work on for this milestone would connect back to, should connect back to, and directly draw upon the strategic issue identification and analysis you've already done.