Strategy Analysis &

Choice
Nature of Strategy Analysis & Choice

-- Establishing long-term objectives

-- Generating & evaluating alternative strategies
-- Selecting strategies to pursue
-- Best alternative - achieve mission & objectives
-- The firm’s present strategies, objectives, and
mission, coupled with the external & internal audit
information, provide basis for generating and
evaluating feasible alternative strategies.
 Matching Key Factors to Formulate Alternative
Strategies
Key Internal Key External Resultant
Factor Factor Strategy
20% annual growth
Excess working in the cell phone
+ = Acquire Cellfone, Inc.
capacity (strength) industry
(opportunity)

Exit of two major

Pursue horizontal
Insufficient capacity foreign competitors
+ = integration by buying
(weakness) from the industry
competitor's facilities
(opportunity)

Decreasing numbers
Develop new products for
Strong R&D (strength) + of young adults =
older adults
(threat)

Develop a new
Poor employee morale Strong union
+ = employee benefits
(weakness) activity (threat) package