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    6A Strategy Analysis and Choice

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    ALI SHER Haidri

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    6A Strategy Analysis and Choice

    Uploaded by

    ALI SHER Haidri
    54 views22 pages

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    © All Rights Reserved
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    Download as ppt, pdf, or txt
    54 views22 pages

    6A Strategy Analysis and Choice

    Uploaded by

    ALI SHER Haidri

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 22

    Strategic Management

    Concepts & Cases

    Fred R. David
    Chapter 6:
    Strategy Analysis &
    Choice
    PowerPoint Slides By:
    Anthony F. Chelte
    Western New England College

    Ch. 6-1
    © 2001 Prentice Hall
    Comprehensive Strategic Management Model

    External
    Audit

    Chapter 3

    Vision Strategy Implement


    Strategies Implement Measure &
    & Analysis Strategies:
    In Strategies: Evaluate
    Mission & Marketing,
    Performance
    Statements Action Mgmt Issues
    Fin/Acct,
    Choice
    R&D, CIS
    Chapter 5 Chapter 7 Chapter 9
    Chapter 2 Chapter 6 Chapter 8

    Internal
    Audit

    Chapter 4

    Ch. 6-2
    © 2001 Prentice Hall
    Strategy Analysis & Choice
    “Strategic management is not a box of tricks or
    a bundle of techniques. It is analytical
    thinking and commitment of resources to
    action. But quantification alone is not
    planning. Some of the most important issues
    in strategic management cannot be quantified
    at all.”

    —Peter Drucker—

    Ch. 6-3
    © 2001 Prentice Hall
    Strategy Analysis & Choice

    “Whether it’s broke or not, fix it—make it


    better. Not just products, but the whole
    company if necessary.”

    —Bill Saporito—

    Ch. 6-4
    © 2001 Prentice Hall
    Strategy Analysis & Choice

    “Planning is often doomed before it ever


    starts, either because too much is
    expected of it or because not enough is
    put into it.”

    —T. J. Cartwright—
    Ch. 6-5
    © 2001 Prentice Hall
    Strategy Analysis & Choice

    Strategic Analysis and Choice:

    Making subjective decisions based on


    objective information

    Ch. 6-6
    © 2001 Prentice Hall
    Strategy Analysis & Choice

    Strategic Analysis and Choice:

    • Generate feasible alternatives


    • Evaluate alternatives
    • Select specific course of action

    Ch. 6-7
    © 2001 Prentice Hall
    Strategy Analysis & Choice
    Generating & Selecting Strategies

     Develop set of most attractive alternative


    strategies
     Determine for the set
    • Advantages
    • Disadvantages
    • Trade-offs
    • Costs
    • Benefits
    Ch. 6-8
    © 2001 Prentice Hall
    Strategy Analysis & Choice
    Generating & Selecting Strategies

     Involve a broad mix of personnel


    • Representation from each department/function
    • Provides opportunity to gain understanding of
    firm’s direction
    • Provides vehicle to develop commitment to
    attainment of organizational objectives

    Ch. 6-9
    © 2001 Prentice Hall
    Strategy Analysis & Choice
    Generating & Selecting Strategies

     Evaluate each alternative


    • Internal and external audit information
    • Firm’s mission statement
    • Listed in writing
    • Ranked in order of attractiveness

    Ch. 6-10
    © 2001 Prentice Hall
    Strategy-Formulation Analytical Framework

    Stage 1: The Input Stage

    Stage 2: The Matching Stage

    Stage 3: The Decision Stage

    Ch. 6-11
    © 2001 Prentice Hall
    Strategy-Formulation Analytical Framework

    Stage 1: The Input Stage

    External Internal
    Competitive
    Factor Factor
    Profile
    Evaluation Evaluation
    Matrix
    Matrix (EFE) Matrix (IFE)

    Ch. 6-12
    © 2001 Prentice Hall
    Strategy-Formulation Analytical Framework

    Stage 2: The Matching Stage

    Threats Strategic Boston Internal-


    Opportunities Position & Consulting External Grand
    Weaknesses Action Group Matrix Strategy
    Strengths Evaluation Matrix (IE) Matrix
    (TOWS) (SPACE) (BCG)

    Ch. 6-13
    © 2001 Prentice Hall
    Strategy-Formulation Analytical Framework

    Stage 3: The Decision Stage

    Quantitative Strategic
    Planning Matrix
    (QSPM)

    Ch. 6-14
    © 2001 Prentice Hall
    Strategy Analysis & Choice
    Stage 1: The Input Stage

     Provides Basic Input for Stages 2 and 3


    • External Factor Evaluation Matrix (EFE)
    • Internal Factor Evaluation Matrix (IFE)
    • Competitive Profile Matrix

    Ch. 6-15
    © 2001 Prentice Hall
    Strategy Analysis & Choice
    Stage 2: The Matching Stage

     Strategy is characterized by the


    organizational match between

    • Internal resources and skills


    • Opportunities & risks created by external
    factors

    Ch. 6-16
    © 2001 Prentice Hall
    Matching Key Factors
    Key Internal Factor Key External Factor Resultant Strategy

    Ch. 6-17
    © 2001 Prentice Hall
    Four Types of Strategies

    Threats
    Opportunities
    Weaknesses
    Strengths
    (TOWS)

    Ch. 6-18
    © 2001 Prentice Hall
    SO Strategies

    Threats
    Opportunities
    Weaknesses
    Strengths
    (TOWS)

    Ch. 6-19
    © 2001 Prentice Hall
    WO Strategies

    Threats
    Opportunities
    Weaknesses
    Strengths
    (TOWS)

    Ch. 6-20
    © 2001 Prentice Hall
    ST Strategies

    Threats
    Opportunities
    Weaknesses
    Strengths
    (TOWS)

    Ch. 6-21
    © 2001 Prentice Hall
    WT Strategies

    Threats
    Opportunities
    Weaknesses
    Strengths
    (TOWS)

    Ch. 6-22
    © 2001 Prentice Hall

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