STRATEGIC THEORY FOR THE 21st CENTURY: THE LITTLE BOOK ON BIG STRATEGY Harry R. Yarger February 2006 This publication is a work of the United States Government as defined in Title 17, United States Code, section 101. As such, it is in the public domain, and under the provisions of Title 17, United States Code, Section 105, it may not be copyrighted. Visit our website for other free publication downloads http://www.StrategicStudiesInstitute.army.mil/ To rate this publication click here. *****
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Chapter 6 Strategy Analysis & Choice Strategic Management: Concepts & Cases 13th Edition Global Edition Fred David Please note this is not a comprehensive source for studying Please note this is not a comprehensive source for studying Ch 6 -1 Ch 6 -2 Strategy Analysis & Choice “Whether it’s broke or not, fix it – make it better. Not just products, but the whole company if necessary.” – Bill Saporito “Life is full of lousy options.” – General P.X. Kelley Please note
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1. 2. 3. Which strategies aim at improving internal weaknesses by taking advantage of external opportunities? a. b. c. d. e. SO WO SW ST WT 4. How many cells are in a SWOT Matrix? a. b. c. d. e. Two Four Six Eight Nine 5. What are two external dimensions of the SPACE Matrix? a. b. c. d. e. Environmental stability and industry strength Environmental stability and competitive advantage Industry strength and competitive advantage Competitive advantage and financial strength
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inbound or outbound shipping and materials handling * Shared after-sales service * Shared brand name * Shared management know-how Correct 2. Firms that enjoy higher profit margins are using which of Michael Porter’s generic strategies? * Cost leadership * Concentrated growth * Focus * Differentiation Correct 3. If a textile producer acquires a shirt manufacturer, this is called * backward horizontal acquisition * vertical horizontal acquisition
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Identify the firm’s exiting vision, mission, objective and strategies (Executive summary). Vision: To become the world’s leading Consumer Company for automotive products and services. Mission: We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. We anticipate consumer need and deliver outstanding products and services that improve people’s lives. Strategies: Aggressively restructure to operate profitably at the
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President and General Manager of Brita USA. He proposed a risky deficit-spending strategy to gain market with the goal of getting a Brita water pitcher on every kitchen countertop in the United States. As a result Brita USA incurred heavy losses upfront as initial sunk costs dwarfed any revenue from sales, and the company saw no profits in its first 4 years. Couric however, believed that in the long run the strategy would pay off as once Brita had achieved enough market share the company would make
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NAME: _______________________________________ CASE 8: Research In Motion: Managing Explosive Growth 1. BACKGROUND INFORMATION |Timeframe |Country(s) Involved |Key Individuals & Titles |Company Type & Size | | | | | | 2. BRIEF SUMMARY OF CASE SITUATION |Business or Industry
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19 4.1.3. Political, Governmental and Legal Aspects……………………...22 4.1.4. Technological Aspects………………………………………..…..24 4.2. Industry and Competitor Analysis……………………………….……25 4.3. The Competitive Profile Matrix (CPM)……………............................43 4.4. External Factor Evaluation (EFE) Matrix……………………………..71 4.5. Strategic Issues based on External Factors……………………………73 5. Company Analysis…………………………………………….....74 5.1. Internal Audit……………………………………………………..….74 5.2. Financial Audit………………………………………………………82
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Statement Strategy Analysis State 1: The Input Stage External Factor Evaluation o Opportunities o Threats Competitive Profile Matrix Internal Factor Evaluation o Strengths o Weaknesses Summary of Financial Ratios in Target Corporation Stage 2: The Matching Stage 1) The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, 2) The Strategic Position and Action Evaluation (SPACE) Matrix, 3)
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following matrices to justify the strategies you will be recommending: SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, Grand Strategy Matrix, and QSP Matrix. 2. Discuss the advantages and disadvantages of at least two (2) alternative strategies. 3. Recommend specific strategies and objectives for the firm to follow over the next three (3) years. Include an itemized estimate of costs for each year. 4. Compare and contrast your recommendations to the actual strategies planned by the company.
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