The Alaska Gold Mine

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.

The Alaska Gold Mine Here are your alternatives: Wait three or four weeks until the weather warms up and enjoy a safe trip home.

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.

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.

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).

Gold Mine (You have 14 days)

Gold Mine (You have 14 days)

Gold Mine (You have 14 days)

Gold Mine (You have 14 days)

Gold Mine (You have 14 days)

Gold Mine (You have 14 days) Framing—other options Valley 3 days, then reassess Bluff Bring a sat phone next time so that you can order a helicopter 

CONCEPTUAL OVERVIEW GOAL STRATEGY The Environment - “Threats & Opportunities” GOAL STRATEGY Management’s values & attitude toward risk Capabilities - “Strengths & Weaknesses”

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__

“Threats & Opportunities” GOAL 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 Management’s values & attitude toward risk Organization’s resources and capabilities - “Strengths & Weaknesses” Performance

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