ITV

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Kenyatta University *

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Marketing

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Nov 24, 2024

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SAFe ITV can use SAFe to analyze the pros and cons of its numerous strategic options and choose the optimal course of action. The first stage for ITV is to select a measure to evaluate its prospects; considering the Suitability, Acceptability, and Feasibility (SAF) of each is a good place to start (Barrington, 2022). If ITV agree with Johnson, Scholes, and Whittington that a strategy must meet these three conditions in order to be successful, then using a SAF strategy model to objectively analyze its possibilities is a terrific technique. Because the suitability of an option determines whether or not the strategy will achieve the goals of the company, suitability is likely the most important factor in the SAF strategy model (Barrington, 2022). Environmental appropriateness, expectation suitability, and competency suitability are just a few of the common qualities used to determine whether a strategy is a good fit for a company. Acceptability in a SAF strategy model is all about assessing a strategy's impact in terms of return, risk, and stakeholder reactions (Barrington, 2022). Returns on ITV should be calculated based on the benefits anticipated by stakeholders from the plan, which may or may not be monetary. ITV can calculate returns using cost-benefit analysis, real-options analysis, profitability analysis, and shareholder value analysis. When assessing the risk associated with a strategy, consider the potential for monetary or reputational damage, as well as the impact on the business as a whole (Barrington, 2022). ITV can evaluate plan risks in terms of their impact on liquidity, sensitivity analysis, and stakeholder reactions. The feasibility analysis results of the SAF strategy model determine the success or failure of any recommended course of action (Barrington, 2022). The success of ITV's strategy is dependent on the company's capacity to implement it, thus it's critical to assess the plan's financial sustainability using break-even analysis, cash flow predictions, and other comparable

evaluations. ITV should consider the availability of resources such as staff, technology, management clout, and raw materials when assessing the feasibility of a strategy. Decision trees ITV can also use decision trees to depict the various options for implementing the strategies. As the number of viable courses of action rises, the decision-maker is compelled to examine critical criteria such as probability, decision points, results, and timeliness as they develop the decision tree ( Tan et al., 2010, 2). The mapping method provides clarity on these critical elements, which is both beneficial and enlightening. ITV is forced to consider a number of options and their consequences by constructing a decision tree. Trying to incorporate all of the elements of a real-world choice dilemma into a single decision tree quickly leads to a muddled mess ( Tan et al., 2010, 2). A preliminary description of the important decision and event nodes is a good starting point for ITV when developing a decision tree. Analysing the interplay between immediate and delayed decisions, as well as the links between the two, can teach us a lot about the choice environment. ITV must construct a decision tree that depicts the market challenges it encounters in order to make an informed decision about its strategic future. ITV must devise a strategy to remain competitive in the online advertising industry now that it has lost its position as the UK's most viewed network. Any decision ITV makes will have ramifications, so it must be aware that it must exercise caution before acting. As a result, if ITV employs this strategy, it must be prepared to devote more time to analysing the benefits of various strategic options. Balance scorecard

ITV can also utilize the balance scorecard methodology to evaluate its strategic options. A balanced scorecard (BSC) is a sort of performance statistic used in strategic management to assess and improve the relationships between internal operations and the outputs provided to consumers ( Cobbold et al., 2004, 625). Businesses in the United States, the United Kingdom, Japan, and Europe utilise balanced scorecards to measure performance and provide feedback. Managers and executives must gather and comprehend data in order to achieve quantitative results. Employees of the organisation can use this information to better long-term planning. When it comes to corporate goals, the scorecard can provide insight about ITV as a whole. To identify the source of ITV within an organisation, the balanced scorecard approach could be utilised in conjunction with strategy mapping. A BSC can also be used to develop large-scale plans and objectives ( Cobbold et al., 2004, 627). Delegating work and projects to various divisions can help the organisation enhance its bottom line by increasing financial and operational efficiencies. If ITV implements this model of evaluation, it will gain various advantages. The BSC, for example, will make it easier for ITV to aggregate data and information from several sources into a single report. This saves management time, money, and other assets while conducting reviews to improve existing processes. Scorecards can teach management a lot about the company's service and quality, as well as its financial performance ( Campbell et al., 2002, 2). ITV executives may train employees and other stakeholders by evaluating all of these KPIs and providing feedback and support. This allows for frank discussion about how they intend to attain their common future goals. Another significant advantage of BSCs is that they assist organisations in becoming less reliant on inefficient ways ( Campbell et al., 2002, 2). If ITV applies this model, it will realize that its competitiveness is due to reliance on outdated

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advertising methods hence make an appropriate choice which can help the company become competitive again. Reflection In my opinion, I think ITV should employ the SAFe strategy in evaluating the strategic options to come up with the best strategy that can help in solving the issue at hand. This is because SAFe considers all the aspects of the company throughout the evaluation process. By considering all the affected parties in the company, ITV will choose the most appropriate strategy to handle its strategic issue. Since competition is a key factor in ensuring the company profitability, ITV should use this tool to evaluate its strategies well as it offers a platform to make an appropriate choice. As opposed to other tools, SAFe is easy to follow and once a decision is made, there are no follow up decisions that need to be made like in the decision tree. Additionally, I think that ITV like many other companies is familiar with this model hence it will be cheaper and time saving to employ it as the experts will easily utilize it. According to the case study, I realized that stakeholders, company objectives and aims, and financial aspects are of significant value when discussing the issue of ITV. I chose this tool because its feasibility aspect deals with the company’s ability to deliver a strategy. This shows that SAFe considers the financial factor which is a critical aspect in the delivery of any strategy hence it should be preferred. No proposed strategic option can be implemented without money and discussing the financial implication of a strategy before settling on it is critical. Given that the company’s market has been highly saturated a strategy that ITV will focus on must be suitable, acceptable and feasible to help in increasing its competitiveness. To ensure these, all the suggested strategic options have to be measured in terms of their suitability,

acceptability and feasibility by the experts to ensure a right decision is made. Considering the other models like the decision trees and the balance scorecards, they are wider hence require more time to evaluate the options. In my opinion, I think ITV requires a quick decision that doesn’t waste time and resources. Therefore, SAFe will be the best model to help ITV evaluate its strategic options quickly and make an appropriate choice.

References Angwin, D. ITV: DIY, buy or ally? 2017. Pp 399-403 Barrington, R. (2022) Evaluating strategic options using SAF strategy model, Oxford College of Marketing Blog. Available at: https://blog.oxfordcollegeofmarketing.com/2018/02/25/evaluating-strategic-options- using-saf-strategy-model/ (Accessed: May 1, 2023). Campbell, D., Datar, S., Kulp, S.C. and Narayanan, V.G., 2002. Using the balanced scorecard as a control system for monitoring and revising corporate strategy. Cobbold, I., Lawrie, G. and Issa, K., 2004. Designing a strategic management system using the third‐generation balanced scorecard: a case study. International Journal of Productivity and Performance Management, 53(7), pp.624-633. Tan, B., Anderson Jr, E.G., Dyer, J.S. and Parker, G.G., 2010. Evaluating system dynamics models of risky projects using decision trees: alternative energy projects as an illustrative example. System Dynamics Review, 26(1), pp.1-17.

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