MGT 6 Strategy Analysis and Choice

Question 1

Stage 1 of Formulation Framework consists of what?

Answer 1

EFE Matrix
IFE Matrix
CPM Matrix (Competitive Profile Matrix)
Stage 1 is also called the input stage

Question 2

What is an alternative name for Stage 2?

Answer 2

Matching Stage

Question 3

What is an alternative name for Stage 3?

Answer 3

Decision Stage

Question 4

This is the tendency to put too much weight on a certain factor

Answer 4

Halo Error

(Google does not agree with this)

Question 5

What is the SPACE matrix?

Answer 5

Strategic Position and Action Evaluation Matrix
The 4 axis thing

Question 6

What are the internal dimensions of the SPACE matrix

Answer 6

Financial Position (Top)
Competitive Position (Left)

Question 7

What are the 2 external dimensions of the SPACE matrix

Answer 7

Stability Position (Down)
Industry Position (Right)

Question 8

What are the 4 stances in the SPACE matrix

Answer 8

Conservative (Top Left)
Aggressive (Top Right)
Defensive (Bottom Left)
Competitive (Bottom Right)

Question 9

Regarding Aggressive Strategies what are the examples?

Answer 9

Both Competitive and Conservative examples

Question 9

Regarding Competitive Strategies what are the examples?

Answer 9

The various types of integrations (Vertical and Horizontal)
And the other conservative examples

Question 10

Regarding Conservative Strategies what are the examples?

Answer 10

Market Penetration
Market Development
Product Development
Diversification

Question 11

Regarding Defensive Strategies what are the examples?

Answer 11

Retrenchment
Divestiture
Liquidation

Question 12

What is the BCG Matrix?

Answer 12

Boston Consulting Group Matrix
-Designed specifically to enhance a multidivisional firm’s efforts to formulate strategies
-Graphically Portrays differences in divisions in relative market share position (x axis) and industry growth rate (y axis)

Question 13

What is the other name for Form 10k?

Answer 13

Annual Report

Question 14

These businesses are called so because the org must decide whether to pursue or sell them.
It is also the 1st Quadrant of BCG

Answer 14

Question Mark (Top Right)
-Low market share
-High Growth
(Conservative Strategies)
+Divestiture

Question 15

These represent the org’s best long run opportunities for growth and profit.
It is also the 2nd Quadrant of BCG

Answer 15

Stars (Top Right)
-High Market Share
-High Growth
(Competitive + Conservative Strategies)

Question 16

These businesses are called so because they generate more cash than they need, they are also yesterday’s stars
It is also the 3rd Quadrant of BCG

Answer 16

Cash Cow (Bottom Right)
-High Market Share
-Low Growth
(Product Dev, Diversi, Retrench, Divesti)

Question 17

These businesses are called so because of their weak internal and external position
It is also the 4th Quadrant of BCG

Answer 17

Dogs (Bottom Left)
-Low Market Share
-Low Growth
(Defensive Strategies)

Question 18

These 2 methods are also called portfolio matrices

Answer 18

Internal Evaluation Matrix (The 3x3 grid)
BCG Matrix (The funny dog cash cow grid)

Question 19

Explain IE matrix (To yourself lol)

Answer 19

3x3 grid thing
X axis is EFE from 1 (Low Bottom) 4 (High Top)
Y axis is IFE from 1 (Weak Right) 4 (Strong Left)
Left to Right is 1, 2, 3, then 4…….

Strategies are
1, 2, 4 is Competitive + Conservative (Grow + Build)
7, 5, 3 is Market Pen + Product Dev (Hold and Maintain)
8, 9, 6 is Retrench + Divest (Harvest or Divest)

Question 20

What is now a popular tool for formulating alternative strategies

Answer 20

The Grand Strategy Matrix

Question 21

Recap the 5 tools in Stage 2 Matching Stage

Answer 21

1. SWOT Matrix
2. SPACE Matrix
3. BCG Matrix
4. IE Matrix
5. Grand Strategy Matrix

Question 22

Explain the Grand Strategy Matrix (To yourself again lol)

Answer 22

Very similar to BCG
X is Competitive Position (Left is Weak, Right is Strong)
Y is Market Growth (Up is Rapid, Down is Slow)

Quadrants have no name
Top left is Q1 Rapid Growth + Strong Competitive Position
(Intensive Strategies + the directional integrations)
Top right is Q2 Rapid Growth + Weak Position
(Intensive Strategies + Horizontal + Divesti, Liquida)
Bottom left is Q3 Slow Growth + Weak Position
(Retrench, Diversi, Divesti, Liquida)
Bottom Right is Q4 Slow Growth + Strong Position
(Diversi + Joint Ventures)