Course Facilitator

Deep Kumar
 Strategy Analysis and Choice Seek to
determine alternative courses of action that
best enable the firm to achieve its mission
and objectives.

 The firm’s present strategies , objectives and

mission , coupled with the external and
internal audit information, provide a basis for
generating and evaluating feasible alternative
strategies.
 Internal and External Audit Information
 Employee Feedback
 Employee Creativity
 Rank each Best Stragy
 Stage 01 : The Input Stage
 Stage :02 The Matching Stage
 Stage 03: The Decision Stage
 EFE Matrix
 The IFE Matrix
 Competitive Profile Matrix (CPM)

Stage 01 comprises of Basic Input Information

for Strategy formulation
 It focuses upon generating feasible
alternative strategies by aligning key external
and internal factors.
 SWOT Matrix
 Strategic Position and action Evaluation
 Boston consulting Group
 Internal – External Matrix
 Grand Strategy Matrix
 It includes QSPM

 QSPM uses information from stage 01 (input)

to objectively evaluate feasible alternative
strategies identified in Stage 02.
 QSPM reveals the relative attractiveness of
alternative strategies and thus provide basis
for selecting specific strategies.
Key Internal Resultant
Factor Key External Factor Strategy

Excess
working 20% Annual growth in cell Acquire
Capital phone industry cellfone.inc

insufficient Exit of two major foreign Horizontal

capacity competitors from industry integration
 SWOT Matrix
◦ List the firm’s key external opportunities
◦ List the firm’s key external threats
◦ List the firm’s key internal strengths
◦ List the firm’s key internal weaknesses
 It is four quadrant framework indicates
whether aggressive, conservative, defensive
or Competitive Strategies are most
appropriate for a given organization.
 The Axes of space Matrix represent two
external dimensions Stability Position (SP),
industry Position (IP) and two internal
dimensions Financial Position (FP),
Competitive Position (CP).
 Depending on type of organization,
numerous variables could make up each of
the dimensions represented on the axes of
the Space matrix.
 And Also consider Internal and External key
factors in developing space matrix.
1.0 select a set of variables to define financial
position (FP), competitive position (CP), stability
position (SP) and Industry Position (IP).
2.0 Assign a numerical value ranging from +1
(worst) to +7 (Best) to each of the variables that
make up FP and IP.
Assign numerical value ranging from -1 (Best)
to (-7) (worst) to each of the variables that
make up SP and CP
3.0 Compute an Average score for FP,CP,IP and
SP.
4.0 Plot th average scores for FP,IP,CP and SP on
the appropriate axis in the space Matrix.
5.0 Add the two score on the X-Axis and plot
resultant point of X and same for Y Axis. Plot
intersection of the new XY point.
6.0 Draw a directional vector from the origin of
the SPACE Matrix through the new intersection
point. It will reveals the type of Strategy.