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Strategy Formulation, Azyura Humaira 120310180025 - Coggle Diagram
Strategy Formulation
Strategy Formulation Tools
IE Matrix
Description
positions an organization’s various divisions in a ninecell display
the size of each circle represents the percentage
sales contribution of each division
pie slices reveal the percentage profit contribution
Strategy
Grow and Build
Cells I, II, IV
Intensive (market penetration, market development, and product development)
integrative (backward integration, forward integration, and horizontal integration)
Hold and Maintain
Cells III, V, VII
market penetration and product development
Harvest or Divest
Cells VI,VIII, IX
BCG Matrix
Quadran
Stars
represent the organization’s best long-run
opportunities for growth and profitability
Cash Cows
have a high relative market share
position but compete in a low-growth industry
Question Mark
Divisions in Quadrant I have a low relative market share position, yet they compete in a high-growth industry
Dogs
have a low relative market share position and compete in a slow- or no-market-growth industry
Grand Strategy Matrix
Quadran II
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
Quadran III
Retrenchment
Related diversification
Unrelated diversification
Divestiture
Liquidation
Quadran I
Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Related diversification
Quadran IV
Related diversification
Unrelated diversification
Joint ventures
SPACE Matrix
The axes
represent two internal dimensions (financial position [FP] and competitive position [CP]) and two external dimensions (stability position [SP] and industry position [IP])
Four-quadrant Framework
Aggressive
Backward, forward, horizontal integration
Market penetration
Market development
Product development
Diversification (related or unrelated)
Consevative
Market penetration
Market development
Product development
Related diversification
Defensive
Retrenchment
Divestiture
Liquidation
Competitive
Backward, forward, horizontal integration
Market penetration
Market development
Product development
QSPM
uses input from Stage 1 analyses and matching results from Stage 2 analyses to decide objectively among alternative strategies
determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized upon or improved
Step
Step 1 Make a list of the firm’s key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM.
Step 2 Assign weights to each key external and internal factor.
Step 3 Examine the Stage 2 (matching) matrices, and identify alternative strategies that
the organization should consider implementing
Step 4 Determine the Attractiveness Scores (AS)
Step 5 Compute the Total Attractiveness Scores.
Step 6 Compute the Sum Total Attractiveness Score
SWOT Matrix
SO (strengths-opportunities) Strategies
use a firm’s internal strengths to take advantage of external opportunities
WO (weaknesses-opportunities) Strategies
aim at improving internal weaknesses by taking advantage of external
opportunities
ST (strengths-threats) Strategies
use a firm’s strengths to avoid or reduce the impact of external threats
WT (weaknesses-threats) Strategies
defensive tactics directed at reducing internal weakness and avoiding
external threats
Strategy Formulation Frame
Framework from David
Stage 1: The Input Stage
CPM
IFE Matrrix
EFE Matrix
Stage 2: The Matching Stage
SWOT Matrix
SPACE Matrix
BCG Matrix
IE Matrix
Grand Strategy Matrix
Stage 3: The Decision Stage
QSPM
Azyura Humaira 120310180025