Strategy Analysis and Choice - seek to determine the alternative courses of action

• 'yung present strategies (past successful strategies), objectives and mission, coupled with
internal and external audit info, these factors provide a basis for the generation and evaluation
of feasible alternative strategies.
VMGO, internal and external audit - dito nanggagaling ang mga strategies

FIGURE 6-1 : STRATMA MODEL

The Process of Generating and Selecting Strategies:

They will only apply a manageable set of most attractive strategies. How can they do that?
They should determine the advantages, disadvantages, the tradeoff of those strategies.

Alternative Strategies Derive From:

VMO, E&I audit, past successful strategies

They will only apply a manageable set of attractive alternative strategies. To do that, they should know
the advantages, disadvantages, tradeoff of those strategies.
2. Ang identification and evaluation are done by many employees and managers. Provides best
opportunities to gain an understanding why the firm is doing that para to make them committed
in achieving the firm's objectives. The participants here should have a copy of the firm's internal
and external audit.

Understanding the mission and vision statements, they could develop strategies that could benefit the
firm.

There must be representatives for each vision of the firm. Hindi lang iilang tao ang involve. This
involvement provides the best opportunity for managers and employees to gain an understanding on
what the firm is doing to make them committed to accomplishing the objectives.

After ma-identify ang participants, dapat may copy sila ng information ng internal and external audit ng
entity.
• Alternative strategies should be considered in the meetings. Listed in writings. After that, all the
feasible strategies will be ranked by attractiveness.
The participants will gather for a meeting for the proposals and those proposals should be listed in
writing and those feasible strategies should be given and understood by participants and kapag
naintindihan na ng bawat isa ang proposal, (kapag naintindihan nila ang strategies ng isa't isa, then->)
they will rank the strategies in order of attractiveness. Kapag 1, should not be implemented, kapag 2,
possibly implemented. Kapag 3, probably should be implemented. Kapag 4, definitely should be
implemented.

After that, this process will result in a prioritized list of best strategies na nagrereflect ng collectiveness
ng growth (?)

Generating Alternatives - It will involve many of the managers and employees, especially those who are
involved in the development of mission statement and those who are concerned with internal and
external audit.
Competitive Profile Matrix (CPM)

Figure 6-2: The Strategy-Formulation Analytical Framework

• Applicable sa lahat ng sizes and types of organizations.

Stage 1: Input Stage

-> Summarizes the basic info needed to formulate the strategies.

External Factor Evaluation Matrix

Competitive Profile Matrix
Internal Factor Evaluation Matrix

Stage 2: Matching Stage

-> focused on the generation of feasible alternative strategies by aligning the key external and internal
factors

SWOT Matrix
Strategic Position Action Evaluation Matrix
Boston Consulting Group Matrix
Internal-External Matrix
Grand Strategy Matrix

Stage 3: Decision Stage - involves single technique

QSPM (Quantitative Strategic Planning Matrix - decision stage) - uses input information from stage 1 to
objectively evaluate the feasible alternative strategies that were identified in stage 2.
• Reveals the attractiveness of alternative strategies
• Provides objective basis for selecting strategies

ALL OF THE NINE TECHNIQUES INCLUDED IN THE STAGES require the integration of intuition and
analysis.

Comprehensive Strategy-Formulation Framework

Stage 1: Input Stage
IFE, EFE and CPM - provides basic information for the matching and decision stage matrices

Internal Factor Evaluation Matrix - require strategies to quantify the subjectivity during the early stages
of the strategy formulation process
External Factor Evaluation Matrix - require strategies to quantify the subjectivity during the early stages
of the strategy formulation process
Competitive Profile Matrix

Para makapag-generate and evaluate ng alternative strategies, they make small decisions in the input
matrices regarding the relative importance of the external and internal factors kaya mas nagiging
effective ang evaluation and generation ng alternative strategies.
You need to have intuitive judgment - so you can appropriately determine the weights and ratings in the
matrices

Stage 2: Matching Stage

SWOT
SPACE
BCG
IE
Grand Strategy
• Relies on information that were derived from the input stage para i-match ang external
opportunities and strengths with internal strengths and weaknesses
• 'Yung matching external and internal critical success factors are the key to effectively generate
alternative feasible strategies

Making small decisions in the input stage, this allows the strategists to effectively develop alternative
strategies.
Sa stage 2, the matching external and internal critical success factors ay important.

All kinds of orgs, they must develop and execute good strategies to win.

"A good offense without a good defense leads to defeat."

Developing strategies of a firm that use strength to capitalize the opportunities could be considered the
offense.
Strategies that improve the weaknesses while avoiding the strengths are termed as defensive.

SWOT Matrix
• Helps develop different types of strategies
• SO, WO, ST, WT strategies
Matching internal and external factors ang mahirap sa SWOT analysis and requires a good judgment.

SO Strategies
• Internal strength is used to take advantage of external trends and the events of the orgs

Kapag may major weakness ang company, magsstrive siya to overcome them and convert them into
strength

WO Strategies
• Improves internal weaknesses to take advantage of external opportunities
• Minsan, may key external opportunities ang isang firm, kaso may internal strengths that prevent
you from exploiting it

ST Strategies
• Hindi kailangang i-meet ng isang strong org ang threats sa external environment head on. You
also need to avoid/reduce the impact of external threats.

WT Strategies
 • Kapag maraming external threats and internal weaknesses ang isang firm, nasa precarious
position ang isang firm.
INTERNAL: STRENGTHS, WEAKNESSES
EXTERNAL: OPPORTUNITIES, THREATS

8 steps sa SWOT

1. First, list the firm's key external opportunities that is the opportunities. List the firm's key
external threats. Internal strengths, and weaknesses.
5. Match internal strengths and external opportunities and report appropriate SO strategies.

SO&WO&ST&WT are developed after S,W,O,T

1. List first Opportunities

2. Then Threats
3. Then Strength
4. Then Weaknesses.
5. Match the internal strength with external opportunities.
6. Match weaknesses with external opportunities.
7. Match the internal strength with external threats.
8. Match weaknesses with external threats.

Limitations with SWOT Matrix

• No competitive advantage showing
• Static assessment in time
• Overemphasis of single external or internal factor in formulating strategies

SPACE Matrix
4 quadrants siya
• Aggressive
• Conservative
• Defensive
• Competitive

Internal dimensions and external dimensions

Financial Strength (FS)

ROI
Leve

Environmental Stability (ES)

BCG Matrix
• Different strategies for businesses
• Designed to improve multidivisional … to formulate strategies

Question Marks - quadrant 1

Hindi lahat ng nasa stage 2 ay dadalin sa stage 3. Mamimili lang through intuitive judgment.

EFE/IFE -> QSPM

Successful outcome is more important than methods of achieving it