1. If you were developing strategy for a small company with 50 employees and a turnover of around $5 million, would you use all the selection criteria outlined in Section 10.1 or would you select only some for this purpose? Give reasons for your answer and, if only choosing some, explain which you would pick.

2. Japanese companies have tended to favour payback criteria while US/UK companies have been more inclined to use DCF criteria in evaluating strategic options. What are the merits of the two approaches? Can you suggest any reasons why one might be preferred to another?

Text Book: Corporate Strategy By Lynch.