LESSON 1 FINALS Flashcards
(53 cards)
seek to determine alternative courses of
action that could best enable the firm to achieve its mission and objectives.
The firm’s present strategies, objectives, vision, and mission, coupled with
the external and internal audit information, provide a basis for generating
and evaluating feasible alternative strategies.
Strategy analysis and choice
Proposed strategies should be listed in writing. T or F
TRUE
- summarizes the basic input information needed to formulate strategies
- consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix
(CPM)
Stage 1 - Input Stage
focuses on generating feasible alternative strategies by aligning key
external and internal factors
Stage 2 - Matching Stage
involves the Quantitative Strategic Planning Matrix (QSPM)
* reveals the relative attractiveness of alternative strategies and thus provides
objective basis for selecting specific strategies
Stage 3 - Decision Stage
It requires the integration of intuition and analysis.
strategy-formulation analytical
framework
provide a basis for identifying, evaluating, and
selecting among alternative corporate-level strategies.
Divisional analyses
provides basic input information for the matching and decision stage
matrices described in this chapter
The Input Stage
is sometimes defined as the match an organization makes
between its internal resources and skills and the opportunities and
risks created by its external factors.
Strategy
This stage consists of five techniques that can be used in any sequence: the SWOT Matrix,
the SPACE Matrix, the BCG Matrix, the IE Matrix, and the Grand
Strategy Matrix.
The matching stage
Successful matching of key external and internal factors depends on those underlying key factors being?
specific, actionable, and divisional
An 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 Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix
use a firm’s internal strengths to
take advantage of external
opportunities
SO Strategies
aim at improving internal
weaknesses by taking advantage
of external opportunities
WO Strategies
use a firm’s strengths to avoid or
reduce the impact of external
threats
ST Strategies
defensive tactics directed at
reducing internal weakness and
avoiding external threats
WT Strategies
Its four-quadrant framework indicates whether aggressive,
conservative, defensive, or competitive strategies are most
appropriate for a given organization.
Strategic Position and Action Evaluation
(SPACE) Matrix
refers to the volatility of profits and revenues for firms in
a given industry.
Strategic Position and Action Evaluation
(SPACE) Matrix
This matrix graphically portrays differences among divisions in terms of relative market
share position and industry growth rate. It allows a multidivisional organization to manage its portfolio of businesses by examining the relative market share position and the industry growth rate of each division relative to all other divisions in the organization
The Boston Consulting Group (BCG) Matrix
When
a firm’s divisions compete in different industries, a separate
strategy often must be developed for each business.
Autonomous divisions
Autonomous divisions (also called segments or profit centers) of
an organization make up what is called a?
business portfolio.
Is defined as the ratio of a division’s own market
share (or revenues) in a particular industry to the market share (or revenues) held by the largest rival firm in that industry.
Relative market share
position (RMSP)
positions an organization’s various
divisions (segments) in a nine-cell display
Internal-External (IE) Matrix
What are the Three major regions of a IE MATRIX?
- Grow and build
- Hold and maintain
- Harvest or divest
