The Alaska Gold Mine

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The Alaska Gold Mine
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The Alaska Gold Mine

• You have taken a three-month option on a possible
  gold mine in Alaska. During your trek and
  exploration, you have remained relatively healthy
  except for an injured left hand which sometimes
  can suddenly become quite weak. With two weeks
  to go before your option expires, you have
  finally discovered gold in what appears to be
  good quantity. You have exactly two weeks to get
  to the claims office. If you arrive late and
  attempt to secure the property with the owners
  knowing you have visited it, they will probably
  hold an auction, at which you, given your limited
  resources, could easily be outbid.
• The weather is only moderately favorable a
  mountain storm may be brewing. You will know
  within 48 hours if the storm is coming and will
  know whether the mountain is passable (if the
  storm comes) about one day later.

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The Alaska Gold Mine

• Here are your alternatives
• Wait three or four weeks until the weather warms
  up and enjoy a safe trip home.

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The Alaska Gold Mine

• Here are your alternatives
• Go over the mountains. This is dangerous. It is
  sometimes impassible. It is quick, however
  (usually 7 to 10 days), if you can make it
  without harm. If you encounter storms or are
  injured before you reach the top, you will
  probably have to turn back. In either case, you
  may perish, because the longest part of the
  journey is on the way over the top.

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The Alaska Gold Mine

• Here are your alternatives
• Go through the valley passes. This is less
  dangerous and is usually passable. However, it
  is slow and tiring. Most people can usually
  complete this journey in two to three weeks.

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The Alaska Gold Mine

• Here are your alternatives
• Wait two to four days, take 2 if the weather
  permits if not take 3. (There is no advantage
  to waiting if you prefer 3 anyway, and waiting
  to take 1 1).

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Gold Mine(You have 14 days)
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Gold Mine(You have 14 days)
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Gold Mine(You have 14 days)
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Gold Mine(You have 14 days)
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Gold Mine(You have 14 days)
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Gold Mine(You have 14 days)

• Framingother options
• Valley 3 days, then reassess
• Bluff
• Bring a sat phone next time so that you can order
  a helicopter ?

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CONCEPTUAL OVERVIEW
The Environment - Threats Opportunities
GOAL
Managements values attitude toward risk
Capabilities - Strengths Weaknesses
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Part II

• Assume you chose the valley pass (3). Five days
  later you are halfway there. But, you may have
  pushed too hard as you sprained your ankle.
  Fortunately, you run into Pat, and old friend on
  a trapping expedition. Pat could get you to the
  claims office and offers to take you. If you
  were healthy, you could get there easily in 7
  days, but you cannot make it alone without a few
  days rest, and even then it could take 10 days or
  more, depending on how your ankle holds up.
  Traveling together, you might make it in 10 to 14
  days. If you tell Pat about the gold and make a
  deal, Pat alone could get there in 8 to 10 days.
• Your are not sure whether Pat can exercise the
  option and file the claim correctly, because Pat
  is not bright, tends to drink in excess, and is
  not the single-minded hustler that you are. Pat
  is a simple, decent person who likes trapping but
  would, you suspect, both need and desire
  financial independence. You think you could
  trust Pat if you offer to split 50-50, because
  Pat would need your expertise to capitalize on
  the discovery.
• What is your decision? Go it alone__ Go with
  Pat__ Send Pat__

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CONCEPTUAL OVERVIEW
The Environment - Threats Opportunities
GOAL

• Implementation Levers
• Organization structure
• Systems and processes
• People and rewards
• Strategic Leadership
• Lever and resource
• allocation decisions
• Develop support among
• stakeholders

STRATEGY
Managements values attitude toward risk
Organizations resources and capabilities
- Strengths Weaknesses
Performance
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Strategy Formulation Implementation

• Implementation Levers
• Organization structure
• Systems and processes
• People and rewards
• Strategic Leadership
• Lever and resource
• allocation decisions
• Develop support among
• stakeholders

Realized Emergent STRATEGY
Intended STRATEGY