Generating and Selecting Strategies

TheProcessofGeneratingandSelectingStrategiesChapter6.pptx

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The Process of Generating and Selecting Strategies

Strategy analysis and choice seek to determine alternative courses of action that could best enable the firm to achieve its mission and objectives. Strategists never consider all feasible alternatives that could benefit the firm because there are an infinite number of possible actions and an infinite number of ways to implement those actions.

The Strategy-Formulation Analytical Framework

Vision

Mission

L-T Strategic Objectives

Strategies

Core Values

STAGE 1: Gather Inputs

EFE Matrix, CPM, and IFE Matrix

STAGE 2: Use a Matrix to Match Inputs, Identify Appropriate Strategy Types, and Generate Feasible Strategy Statements

SWOT Matrix, SPACE Matrix, BCG Matrix

STAGE 3: Select the Most Attractive Strategies

QSPM Matrix

Called the input stage, Stage 1 summarizes the basic input information needed to formulate strategies. Stage 2, called the matching stage, focuses on generating feasible alternative strategies by aligning key external and internal factors. Stage 3, called the decision stage, involves a single technique, the Quantitative Strategic Planning Matrix (QSPM).

Figure 6.2 The Strategy-Formulation Analytical Framework

The Process of Generating and Selecting Strategies

Develop a manageable set of alternative strategies.

Determine their advantages and disadvantages.

Involve in evaluating alternative strategies the managers and employees who earlier determined the vision, mission, external audit, and internal audit.

Discuss the proposed alternative strategies in meetings.

List the proposed strategies in writing.

Rank all feasible strategies in order of attractiveness.

Select very few appropriate strategies for implementation.