“AÑO DEL DIÁLOGO Y RECONCILIACIÓN NACIONAL”

FACULTAD DE CIENCIAS EMPRESARIALES

ESCUELA ACADÉMICO PROFESIONAL DE ADMINISTRACIÓN

SUMMARY OF THE BOOK: Fred R. David. Strategic

Management. Chapter 6

Student:

 Baca Paredes, Karim Judith

Teacher:

 Olenka Ytania Leon Balarezo

CHEPÉN – PERÚ

2018

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PRESENTATION

Organizations in today's world increasingly seek to implement new strategies that allow
them to make better decisions based on the analysis of everything that surrounds them
and which provides a service or provides a product to society in order to meet needs.

In this report, it helps us to reach the goals set. You begin by defining the intermediate
goals, because you can not go directly to the final objectives, and as you reach these goals,
you expand until you reach that final vision, always keeping a control through indicators.

In addition, this report tells us that learning strategies are the set of activities, techniques
and means that are planned according to the needs of the population to which they are
directed, the objectives they pursue and the nature of the areas and courses, all this in
order to make the learning process more effective.

It is also important to study this topic as strategic planning is important for companies
because it combines commercial strengths with market opportunities and provides a
direction to meet the objectives. A strategic plan is a road map for a company.

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 I. INTRODUCTION

This report is about the subject of "Direction by objectives and self-control" of the book by
Peter F. Drucker, this topic is very important, since it will allow us to know which are the
guidelines that we have to take to be able to create our objectives that we want to reach,
either personally or for an organization, demanding us day by day, performing in the best
way considering that each day is one more goal to do things in the best way.

The following report will detail all the topics covered to be able to direct us towards our
objectives, because we are in a changing world, direction by objectives and self-control,
help us to develop as successful managers when working for an organization.

It is important to know about this topic, because without objectives or goals, our
organization will not last long.

The report will also explain to us about the problems that many managers have when they
have bad direction, since they only focus on the results and not on the long-term objectives.

In addition we will know the meaning of self-control, how we can set objectives

The objective of this report is to raise awareness of the issue of definition by objectives and
self-control, because thanks to this topic we will know the issues that affect the good
direction of a manager, by not setting goals, because today the world is so changing and
the competition is strong and thanks to the objectives we can make the best decisions to
always be the best, reaching objectives with high demand.

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 INDEX

PRESENTATION

I. INTRODUCTION .........................................................................................................................3

II. SYNTHESIS .................................................................................................................................5

2.1. Topic 1: THE NATURE OF ANALYSIS OF STRATEGY AND ELECTION ....................................5

2.2. Topic 2: THE PROCESS OF GENERATING AND SELECTING STRATEGIES. .............................5

2.3. Topic 3: AN INTEGRAL FRAMEWORK OF STRATEGY AND FORMULATION .........................5

2.4. Topic 4: THE ENTRY STAGE ................................................................................................6

2.5. Topic 5: THE GAME STAGE.................................................................................................6

2.6. Topic 6: OF STRENGTHS-WEAKNESSES-OPPORTUNITIES-THREATS (SWOT) ......................6

2.7. Topic 7 THE MATRIX OF EVALUATION OF STRATEGIC POSITION AND ACTION (SPACE) ....7

2.8. Topic 8: THE MATRIX OF THE BOSTON CONSULTING GROUP (BCG)..................................7

2.9. Topic 9: THE INTERNAL-EXTERNAL MATRIX (IE).................................................................7

2.10. Topic 10: THE QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) ........................8

III. CONCLUSIONS .......................................................................................................................9

IV. PROJECTIONS.........................................................................................................................9

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 II. SYNTHESIS

2.1. Topic 1: THE NATURE OF ANALYSIS OF STRATEGY AND ELECTION

The analysis of the strategy and the election seek to determine the alternative courses of
action that could allow the company to achieve its objectives

Alternative strategies do not leave the wild blue nature; they are derived from the vision,
mission, objectives, external audit and internal audit of the firm; They are consistent with,
or build, past strategies that have worked well.

2.2. Topic 2: THE PROCESS OF GENERATING AND SELECTING STRATEGIES.

The strategies must be determined. This section discusses the process that many
companies use to

Determine an appropriate set of alternative strategies.

The best opportunity for managers and employees to understand what the company is
doing and why and commit to help the company achieve its objectives

Strategies that they believe could benefit the company more. Creativity must be fostered
in this thought process.

2.3. Topic 3: AN INTEGRAL FRAMEWORK OF STRATEGY AND FORMULATION

Matrix (QSPM). A QSPM uses input information from Stage 1 to objectively evaluate the
feasible alternative strategies identified in Stage 2. A QSPM reveals the relative
attractiveness of alternative strategies and therefore provides an objective basis for
selecting specific strategies.

The strategists themselves, not the analytical tools, are always responsible and responsible
for strategic decisions. Lenz emphasized that the change from a word-oriented to a
number-oriented one.

Objective information and analysis, personal biases, politics, emotions, personalities, and
halo error (the tendency to put too much weight on a single factor) unfortunately can play

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 2.4. Topic 4: THE ENTRY STAGE

Input tools require strategists to quantify subjectivity during the early stages of strategy
formulation processes. Making small decisions in input matrices with respect to the relative
importance of external and internal factors allows strategists more effectively

Generate and evaluate alternative strategies. Intuitive good judgment is always needed in
the determination of appropriate weights and qualifications.

2.5. Topic 5: THE GAME STAGE

The strategy is sometimes defined as the coincidence that an organization makes between
its internal functions. resources and skills and the opportunities and risks created by their
external factors.
Strategies that use strengths to take advantage of opportunities could be considered an
offense, while strategies designed to improve weaknesses by avoidingTopic 5: THE MATRIX

2.6. Topic 6: OF STRENGTHS-WEAKNESSES-OPPORTUNITIES-THREATS (SWOT)

The Strengths-Weaknesses-Opportunities-Threats (SWOT) matrix is an important

combination

Tool that helps managers develop four types of strategies: SO (strengths-opportunities)

Strategies so When a company has great weaknesses, it will strive to overcome them and
make them stronger. When an organization faces greater threats, it will seek to avoid them.
to focus on the opportunities.

ST strategies use the strengths of a company to avoid or reduce the impact of external
threats. This does not mean that a strong organization must always face threats in the
external environment

The SWOT matrix is composed of nine cells. As shown, there are four key factor cells, four

Strategy cells and a cell that is always left blank (the upper left cell). The four strategies
cells, labeled as SO, WO, ST and WT, develop after completing four key factor cells, labeled
as S, W, O and T

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 2.7. Topic 7 THE MATRIX OF EVALUATION OF STRATEGIC POSITION AND
ACTION (SPACE)

Aggressive, conservative, defensive or competitive strategies are the most appropriate for
a given organization. The axes of the SPACE matrix represent two internal dimensions.

Integration backward, forward integration, horizontal integration or diversification may be

feasible, the specific circumstances facing the company.

When a particular company is known, the analyst must be more specific in terms of implicit
strategies. For example, instead of saying, penetration in the market is a recommendation.

the SPACE Matrix, which implies risks beyond the basic competences. Conservative
strategies most often include penetration in the market, the market

2.8. Topic 8: THE MATRIX OF THE BOSTON CONSULTING GROUP (BCG)

The autonomous divisions (or profit centers) of an organization form what is called a
business portfolio. When the divisions of a company compete in different industries, a
strategy must often be developed for each business. The Boston Consulting Group

The BCG matrix graphically portrays the differences between divisions in terms of relative
position of market share and industry growth rate. The BCG Matrix allows a
multidivisional organization to manage its business portfolio by examining the relative
position of market share and the growth rate of the

industry of each division in relation to all other divisions in the organization.

2.9. Topic 9: THE INTERNAL-EXTERNAL MATRIX (IE)

The Internal-External Matrix (IE) places the different divisions of an organization on a

screen, illustrated. The IE matrix is similar to the BCG matrix in that both tools involve
tracing the divisions of the organization in a schematic diagram; This is the reason why
they are called "portfolio matrices". In addition, the size of each circle represents the
percentage

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The sales contribution of each division and the portions of the pie reveal the percentage
contribution to the profit.

the BCG matrix. In addition, the strategic implications of each matrix are different.

The IE matrix is based on two key dimensions: the total weighted scores of the IFE in the

The x-axis and the total weighted scores of EFE on the y-axis. Recall that each division of
an organization must build an IFE matrix and an EFE matrix for its part of the organization.

2.10. Topic 10: THE QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

Transcript of Quantitative Strategic Planning Matrix. It is an analytical method designed to

determine the relative degree of attraction of highly possible actions. Stage 3 is in the
formulation of the strategy: objectively indicates which are the best strategies

Among the alternative strategies. That is, the EFE Matrix, the IFE Matrix and the
Competitive Profile

Matrix that makes up Stage 1, together with the SWOT Matrix, SPACE Matrix, BCG

Matrix, IE Matrix and Grand Strategy Matrix that make up Stage 2, provide the necessary

Information to configure the QSPM (Stage 3). The QSPM is a tool that allows strategists.

QSPM consists of external and internal key factors (from Stage 1) and the top row

It consists of viable alternative strategies (from Stage 2). In particular, the left column of a

QSPM consists of information obtained directly from EFE Matrix and IFE Matrix. in a

Column adjacent to the critical success factors, the respective weights received by each

The factor in the EFE matrix and the IFE matrix are recorded.

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 III. CONCLUSIONS

- We reached the conclusion that the analysis of the strategy and the election seek to
determine the alternative courses of action that could allow the company to achieve its
objectives.

- We also conclude that SWOT is a simple model of analysis that companies use to evaluate
business potential and marketing decisions. The acronym means strengths, opportunities,
weaknesses and threats

- As a conclusion the learning strategies are the set of activities, techniques and means that
are planned according to the needs of the population to which they are directed, the
objectives they pursue and the nature of the areas and courses, all with the purpose of
make the learning process more effective.

IV. PROJECTIONS

 Nowadays, strategic planning is important for companies because it unites

commercial strengths with market opportunities and provides direction to meet
objectives. A strategic plan is a road map for a company.

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 STRATEGY ANALYSIS
AND CHOICE

The analysis of the strategy and the election seek to

determine the alternative courses of action that could allow
the company to achieve its objectives

common goal.

THE NATURE OF AN INTEGRAL SWOT MATRIX BCG MATRIX QSPM MATRIX

ANALYSIS OF STRATEGY FRAMEWORK OF
AND ELECTION STRATEGY AND
FORMULATION

helps develop four Position in the evaluate

seek to determine Feasibly assess types of strategies market strategies and
alternative courses strategies alternatives
of action

THE PROCESS OF IE MATRIX

GENERATING AND THE ENTRY STAGE SPATIAL MATRIX
SELECTING STRATEGIES

The
internal and
strategies Small decisions in the market penetration
external analysis of
must be input matrix strategies
the organization
determined.
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