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Bus. Strat and Policy > Chapter 6: Generate, Evaluate, and Select Strategies > Flashcards

Chapter 6: Generate, Evaluate, and Select Strategies Flashcards

1
Q

Alternative Strategies derive From:

A
  • Vision
  • Mission
  • Objectives
  • External Audit
  • Internal Audit
  • Past Successful Strategies
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2
Q

Nature of Strategy Analysis and Choice

A
  • Establishing Long Term Objectives
  • Generating Alternative Strategies
  • Selecting Strategies to Pursue
  • Best Alternative- Achieve Mission and Objectives
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3
Q

Stage 1: The Input Stage

A
  • Basic Input information for the matching and decision stage matrices
  • Requires strategists to quantify subjectively early in the process
  • Good Intuitive Judgement always needed
  • IFE Matrix, EFE Matrix, CPM Matrix
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4
Q

Stage 2: The Matching Stage

A
  • Match Between organizations internal resources and skills and the oppurtunities and risks created by its external factors
  • SWOT Matrix- SO, WO, ST, WT
  • Space Matrix
  • BCG Matrix
  • Grand Strategy Matrix
  • IE Matrix
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5
Q

Strengths- Oppurtunities (SO)

A
  • use a firms internal strengths ti take advantage of external oppurtunities
  • largest list
  • Use strengths to take advantage of opportunities
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6
Q

Weaknesses- Oppurtunities (WO)

A
  • Improving internal weaknesses by taking advantage of external opportunities
  • Overcoming weaknesses by taking advantage of opportunities
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7
Q

Strengths- Threats (ST)

A
  • Use a firms strengths to avoid or reduce the impact of external threats
  • Use strengths to avoid threats
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8
Q

Weaknesses- Threats (WT)

A
  • Defensive tactics aimed at reducing internal weaknesses and avoiding environmental threats
  • Minimize weaknesses and avoid threats
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9
Q

Space Matrix

A
  • Aggressive
  • Conservative
  • Defensive
  • Competitive
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10
Q

Space Matrix: Internal dimensions

A
  • Financial position (FP)
  • Competitive position (CP)
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11
Q

Space Matrix: External Dimensions

A
  • Environmental position (SP)
  • Industry position (IP)
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12
Q

BCG Matrix (Boston Consulting Group Matrix)

A
  • Assists multidivisional firm in formulating strategies
  • Autonomous divisions = business portfolio
  • Divisions may compete in different industries
  • Focus on relative market-share position & industry growth rate
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13
Q

BCG Matrix Types: Question Marks

A
  • low relative market share in a high-growth industry
  • Cash needs are high
  • Case generation is low
  • Decision to strengthen (intensive strategies) or divest
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14
Q

BCG Matrix Types: Stars

A
  • high relative market share in a high-growth industry
  • Best long-run opportunities for growth & profitability
  • Substantial investment to maintain or strengthen dominant position
  • Integration strategies, intensive strategies, joint ventures
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15
Q

BCG Market Types: Cash Cows

A
  • high relative market share in a low-growth industry
  • Generate cash in excess of their needs
  • Milked for other purposes
  • Maintain strong position as long as possible
  • Product development, concentric diversification
  • If weakens—retrenchment or divestiture
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16
Q

BCG Matrix Types: Dogs

A
  • Low relative market share in a slow or no growth industry
  • Weak internal & external position
  • Liquidation, divestiture, retrenchment
17
Q

Relative Market Share Position

A
  • Ratio of a division’s own market share in an industry to the market share held by the largest rival firm in that industry
18
Q

The Internal- External (IE) Matrix

A
  • Positions an organization’s various divisions in a nine-cell display
  • Similar to BCG Matrix except the IE Matrix:
  • Requires more information about the divisions
  • Strategic implications of each matrix are different
19
Q

IE Matrix Dimensions and Regions

A
  • Based on two key dimensions:
  • The IFE total weighted scores on the x-axis
  • The EFE total weighted scores on the y-axis
  • Divided into three major regions:
  • Grow and build – Cells I, II, or IV
  • Hold and maintain – Cells III, V, or VII
  • Harvest or divest – Cells VI, VIII, or IX
20
Q

Grand Strategy Matrix

A
  • Tool for formulating alternative strategies
  • Based on two dimensions:
  • Competitive position, Market growth
21
Q

Grand Strategy Matrix: Quad. 1

A
  • Excellent strategic position
  • Concentration on current markets/products
  • Take risks aggressively when necessary
22
Q

Grand Strategy Matrix: Quad. 2

A
  • Evaluate present approach
  • How to improve competitiveness
  • Rapid market growth requires intensive strategy
23
Q

Grand Strategy Matrix: Quad. 3

A
  • Compete in slow-growth industries
  • Weak competitive position
  • Drastic changes quickly
  • Cost & asset reduction (retrenchment)
24
Q

Grand Strategy Matrix: Quad 4.

A
  • Strong competitive position
  • Slow-growth industry
  • Diversification to more promising growth areas
25
Q

Stage 3: The Decision Stage

A
  • Quantitative Strategic Planning Matrix (QSPM)
26
Q

Quantitative Strategic Planning Matrix (QPSM)

A
  • Technique designed to determine the relative attractiveness of feasible alternative actions
27
Q

Steps to Develop a QSPM

A
  • Make a list of the firm’s key external opportunities/threats and internal strengths/weaknesses in the left column
  • 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
  • Compute the Total Attractiveness Scores
  • Compute the Sum Total Attractiveness Score
28
Q

QSPM Advantages

A
  • Sets of strategies considered simultaneously or sequentially
  • Integration of pertinent external & internal factors in the decision-making process
29
Q

QSPM Limitations

A
  • Requires intuitive judgments & educated assumptions
  • Only as good as the prerequisite inputs
30
Q

Cultural Aspects of Strategy Choice: Organization Culture

A
  • A set of values, beliefs, attitudes, customs, norms, personalities, heroes and heroines that describe a firm
  • Successful strategies depend on support of the firm’s culture
31
Q

Politics of Strategy Choice: Politics in Organizations

A
  • Hierarchy of command
  • Career aspirations
  • Allocation of scarce resources
32
Q

Politics of Strategy Choice: Political Tactics for Strategists

A
  • Equifinality
  • Satisfying
  • Generalization
  • Higher-order issues
  • Political access on important issues
33
Q

Governance Issues: Board of Directors Roles & Responsibilities

A
  • Control & oversight over management
  • Adherence to legal prescriptions
  • Consideration of stakeholders’ interests
  • Advancement of stockholders’ rights

Bus. Strat and Policy (5 decks)

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