m




c



 Introduction

 Process of generating and selecting strategies

 SWOT matrix

 BCG matrix

 c

Strategy chosen by an organization is based upon

À Internal environment
À External environment
À Post-Well implemented strategies

Some other important factors of any strategy

À Advantages
À Disadvantages
À Tradeoffs
À Costs and various qualitative factors
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Only the most beneficial and feasible strategy needs to be chosen among
all the available feasible alternate strategies
Strategy is chosen after analyzing the following :

a Advantage
a Disadvantage
a Tradeoffs
a Costs

The whole process of strategic model is given below



  


Feedback

Perform
external
audit

Vision
and
implement Measure
mission
strategies, and
statemen Establish Generate Implement marketing, evaluate
t long term evaluate and strategies finance, performa
objectives select management accounting, nce
strategies R&D, CIS
issues

Perform
internal
audit

Strategy Strategy Strategy

formulation implementation evaluation
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m
 
m

External Competitive Profile Matrix Internal
Factor Factor
Evaluation Evaluation
(EFE) Matrix (IFE) Matrix

STAGE 2: THE MATCHING STAGE

Threat Strategic Position Boston Internal Grand

Strategy
Opportunity and action Consulting External Matrix
Weakness Evaluation Group (IE) Matrix
Strength (SPACE) Matrix (BCG) Matrix
STAGE3: THE DECISION STAGE

Quantitative strategic Planning Matrix




Generating and selecting strategies according to the desired objectives.
Various strategies used in this stage are EFE matrix and competitive
profile matrix.

The Matching Stage

Strength, weakness, threat and opportunity all are analyzed to come up
with a strategy. Techniques used are SPACE matrix, BCG matrix and IE
matrix

The Decision Stage

For evaluation only one technique called Quantity Strategic Planning
Matrix is used(QSPM)
 
This matrix helps the people to come up with four main strategies, which
are
 Strength and Opportunity matrix
 Weakness and Opportunity matrix
 Strength and Threat matrix
 Weakness and threat strategy
The sequence of steps required to build the TOES matrix are as follows
 Identifying and listing key external opportunities
 Identifying and listing key external threats
 Identifying and listing key internal strength
 Identifying and listing key internal weakness
 Comparing internal strength with external opportunities(SO)
 Comparing internal weakness with external opportunities (WO)
 Comparing internal weakness with external threats(WT)
 Comparing internal strategies with external threats(ST)
 At end of each strategy , Dz S1, O2- type notation must be indicated for analyzing
various strategies
 

m  m 
mm

m





OPPORTUNITIES-O SO STRATEGIES WO STRATEGIES

List opportunities Use strength to take Overcome weakness by

advantage of opportunity taking advantage of
opportunities

THREATS ST STRATEGIES WT STRATEGIES

List threats Use strength to avoid Minimize weakness and

threats avoid threats
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c


mc

 This matrix graphically represents the market share and industry
growth rate of various divisions of the organization.
 X- axis shows the relative market share position
 Y- axis represents the industry growth sales in term of percentage

1. Question mark divisions in quadrant 1 are those with high

competitive advantage and high market growth (high growth/low
market share)

2. Star divisions in quadrant 2 are those with high growth potential and
high competitive strength (high growth/high market share)

3. Cash cow- divisions in quadrant 3 are those with strong competitive

position but low growth potential (low growth/high market share)

4. Dogs-quadrant divisions in quadrant 4 are those with competitive

disadvantage along with low market growth (low growth/low market
share)
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Relative market share position

High 1.0 medium 0.5 low 0.0

High
+20

Low -20