MGT 6 Strategy Analysis and Choice Flashcards
Stage 1 of Formulation Framework consists of what?
EFE Matrix
IFE Matrix
CPM Matrix (Competitive Profile Matrix)
Stage 1 is also called the input stage
What is an alternative name for Stage 2?
Matching Stage
What is an alternative name for Stage 3?
Decision Stage
This is the tendency to put too much weight on a certain factor
Halo Error
(Google does not agree with this)
What is the SPACE matrix?
Strategic Position and Action Evaluation Matrix
The 4 axis thing
What are the internal dimensions of the SPACE matrix
Financial Position (Top)
Competitive Position (Left)
What are the 2 external dimensions of the SPACE matrix
Stability Position (Down)
Industry Position (Right)
What are the 4 stances in the SPACE matrix
Conservative (Top Left)
Aggressive (Top Right)
Defensive (Bottom Left)
Competitive (Bottom Right)
Regarding Aggressive Strategies what are the examples?
Both Competitive and Conservative examples
Regarding Competitive Strategies what are the examples?
The various types of integrations (Vertical and Horizontal)
And the other conservative examples
Regarding Conservative Strategies what are the examples?
Market Penetration
Market Development
Product Development
Diversification
Regarding Defensive Strategies what are the examples?
Retrenchment
Divestiture
Liquidation
What is the BCG Matrix?
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)
What is the other name for Form 10k?
Annual Report
These businesses are called so because the org must decide whether to pursue or sell them.
It is also the 1st Quadrant of BCG
Question Mark (Top Right)
-Low market share
-High Growth
(Conservative Strategies)
+Divestiture
These represent the org’s best long run opportunities for growth and profit.
It is also the 2nd Quadrant of BCG
Stars (Top Right)
-High Market Share
-High Growth
(Competitive + Conservative Strategies)
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
Cash Cow (Bottom Right)
-High Market Share
-Low Growth
(Product Dev, Diversi, Retrench, Divesti)
These businesses are called so because of their weak internal and external position
It is also the 4th Quadrant of BCG
Dogs (Bottom Left)
-Low Market Share
-Low Growth
(Defensive Strategies)
These 2 methods are also called portfolio matrices
Internal Evaluation Matrix (The 3x3 grid)
BCG Matrix (The funny dog cash cow grid)
Explain IE matrix (To yourself lol)
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)
What is now a popular tool for formulating alternative strategies
The Grand Strategy Matrix
Recap the 5 tools in Stage 2 Matching Stage
- SWOT Matrix
- SPACE Matrix
- BCG Matrix
- IE Matrix
- Grand Strategy Matrix
Explain the Grand Strategy Matrix (To yourself again lol)
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)
