Midterm

Question 1

Space Matrix

Answer 1

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.

Question 2

Space Matrix Strategies

Answer 2

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

Question 3

Space Matrix Inner strategies (Conservative) Q1***

Answer 3

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

Question 5

Space Matrix Inner Strategies (Aggressive) Q2***

Answer 5

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

Question 6

Space Matrix inner strategies (Competitive) Q4***

Answer 6

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

Question 7

Space Matrix inner strategies (Defensive) Q3***

Answer 7

Defensive: Liquidation, Divestiture, Retrenchment

Question 8

Porters Five Forces Model

Answer 8

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

Question 9

Matching (Formulation)

Answer 9

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)

Question 10

Input (Formulation)

Answer 10

Competitive profile matrix, EFE, IFE

Question 11

Matching (Formulation)

Answer 11

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)

Question 12

Decision (Formulation)

Answer 12

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

Question 13

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

Answer 13

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

Question 14

The Formulation three stages are:

Answer 14

Input, Matching, and Decision.

Question 15

The three parts to strategic management are:

Answer 15

Formulation, Implementation, and Evaluation

Question 16

Operational effectiveness:

Answer 16

Follow the trends in the industry

Question 17

Benchmarking

Answer 17

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.