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Strategy Analysis and Choice, Tari Putrie Tri Septian 120310180003 -…
Strategy Analysis and Choice
A Comprehensive Strategy-Formulation Framework
The Matching Stage
SPACE Matrix
The axes of the SPACE Matrix represent two internal dimensions (financial position [FP] and competitive position [CP]) and two external dimensions (stability position [SP] and industry position [IP])
The Boston Consulting Group (BCG) Matrix
Question Marks—Divisions in Quadrant I have a low relative market share position, yet they compete in a high-growth industry.
Stars—Quadrant II businesses (Stars) represent the organization’s best long-run opportunities for growth and profitability.
Cash Cows—Divisions positioned in Quadrant III have a high relative market share position but compete in a low-growth industry
Dogs—Quadrant IV divisions of the organization have a low relative market share position and compete in a slow- or no-market-growth industry; they are Dogs in the firm’s portfolio
The Internal-External (IE) Matrix
similar to the BCG Matrix in that both tools involve plotting organization divisions in a schematic diagram; this is why they are both called “portfolio matrices.” Also, the size of each circle represents the percentage sales contribution of each division, and pie slices reveal the percentage profit contribution of each division in both the BCG and IE Matrix.
The Grand Strategy Matrix
Strategy Matrix has become a popular tool for formulating alternative strategies. All organizations can be positioned in one of the Grand Strategy Matrix’s four strategy quadrants.
TOWS Matrix
important matching tool that helps managers develop four types of strategies: SO (strengths-opportunities) Strategies, WO (weaknesses-opportunities) Strategies, ST (strengths-threats) Strategies, and WT (weaknesses-threats) Strategies.
The Decision Stage
The Quantitative Strategic Planning Matrix (QSPM)
Make a list of the firm’s key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM
Assign weights to each key external and internal factor
Examine the Stage 2 (matching) matrices, and identify alternative strategies that the organization should consider implementing
Determine the Attractiveness Scores (AS)
The Input Stage
The Politics of Strategy Choice
Generalization
Focus on Higher-Order Issues
Equifinality
Strategists should recognize that achieving a successful outcome is more important than imposing the method of achieving it.
Provide Political Access on Important Issues
Satisfying
Achieving satisfactory results with an acceptable strategy is far better than failing to achieve optimal results with an unpopular strategy.
The Nature of Strategy Analysis and Choice
Cultural Aspects of Strategy Choice
It is beneficial to view strategic management from a cultural perspective because success often rests upon the degree of support that strategies receive from a firm’s culture.
The Process of Generating and Selecting Strategies
Governance Issues
Tari Putrie Tri Septian
120310180003