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Flashcards in Midterm Deck (16)
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1

Space Matrix

Compares external environment with the internal positions of:

External is Competitive compared to the industry

Internal is Financial compared to the stability.

Add the Y and X axises and plot those two points.

2

Space Matrix Strategies

Q1: Conservative
Q2: Aggressive
Q3: Defensive
Q4: Competitive

3

Space Matrix Inner strategies (Conservative) Q1***

Conservative: MD, PD, MP, D (related)

5

Space Matrix Inner Strategies (Aggressive) Q2***

Aggressive: BI, FI, HI, MP, MD, PD, D (non related or related)

6

Space Matrix inner strategies (Competitive) Q4***

Competitive: BI, FI, HI, MP, MD, PD

7

Space Matrix inner strategies (Defensive) Q3***

Defensive: Liquidation, Divestiture, Retrenchment

8

Porters Five Forces Model

1) Supplier Power
2) Buyer Power
3) Threat of new subsitutes
4) Degree of Rivalry
5) Threat of new entrants

9

Matching (Formulation)

match external to internal

1. SWOT matrix - (WO, WT, SO, ST) things that influence us but that we don’t control, recording and putting down. (O,T)

2. space matrix – compares FP or financial positon to SP or stability position & IP or industry position to CP or competitive position. You then have strategys in each quadtrant. Conservative in the Q1, Aggressive in Q2, Defensive in Q3, and Competitive in Q4.

3. Boston Consulting group matrix - relative marketshare (internal) to industry growth rate by percent of sales (external).

4. IE matrix (Internal/External) –the total weighted score from EVE matched to the total weighted score from IFE

5. GSM Grand strategy matrix – market growth vs competitive position (slow or rapid MG) (Weak or strong comp positon)

10

Input (Formulation)

Competitive profile matrix, EFE, IFE

11

Matching (Formulation)

match external to internal

1. SWOT matrix - (WO, WT, SO, ST) things that influence us but that we don’t control, recording and putting down. (O,T)

2. space matrix – compares FP or financial positon to SP or stability position & IP or industry position to CP or competitive position. You then have strategys in each quadtrant. Conservative in the Q1, Aggressive in Q2, Defensive in Q3, and Competitive in Q4.

3. Boston Consulting group matrix - relative marketshare (internal) to industry growth rate by percent of sales (external).

4. IE matrix –the total weighted score from EVE matched to the total weighted score from IFE

5. GSM Grand strategy matrix – market growth vs competitive position (slow or rapid MG) (Weak or strong comp positon)

12

Decision (Formulation)

QSPM. Quantitative Strategic Planning Matrix, (Alternative 1 to Alternative 2)

13

Porters three reasons what companies don’t like Strategic Planning:

1. Focus more on implementation (replication)
2. Managers think that strategy slows them down (Investment and Expense)
3. Strategies are difficult

14

The Formulation three stages are:

Input, Matching, and Decision.

15

The three parts to strategic management are:

Formulation, Implementation, and Evaluation

16

Operational effectiveness:

Follow the trends in the industry

17

Benchmarking

the process of comparing one's business processes and performance metrics to industry bests and best practices from other companies. The three dimensions measured are typically quality, time, and cost.