Strategy Analysis
Strategy Analysis
Strategy Analysis
Formulation Framework
External Factor Evaluation Matrix (EFE) Internal Factor Evaluation Matrix (IFE)
Input Stage
Provides basic input information for the matching and decision stage matrices Requires strategists to quantify subjectivity early in the process Good intuitive judgment always needed
4
Formulation Framework
TOWS Matrix SPACE Matrix
Stage 2: The Matching Stage
Matching Stage
Match between organizations internal resources and skills and the opportunities and risks created by its external factors.
Formulation Framework
Formulation Framework
External Factor Evaluation Matrix (EFE)
10
11
13
Exhibit 2.4
SUBSTITUTES
Reprinted with the permission of The Free Press, a division of Simon & Schuster, Inc. from Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright 1980, 1998 by The Free Press.
14
Threat of Suppliers
Substitutes
Train, public transport or other means of transportation
Threat of Buyers
Numerous potential customers Industry policy of rebates More demanding customers
15
16
Menggambarkan keseluruhan opportunities dan threats yang ada untuk mengetahui seberapa besar pengaruh dari setiap faktor tersebut terhadap institusi, respons institusi setiap faktor tersebut dan untuk mengetahui nilai institusi terhadap keseluruhan faktor dibandingkan dengan Institusi lain
17
& threats
18
20
Highest possible weighted score for the organization is 4.0; the lowest, 1.0.
Weight .15
Rating
Weighted score
1 3 1 4 3 2 3 2 2 1
.15 .15 .05 .60 .30 .20 .15 .10 .20 .20 2.10
.05 .05 .15 .10 .10 .05 .05 .10 .20 1.00
Threats
Legislation against the tobacco industry Production limits on tobacco Smokeless market SE region U.S. Bad media exposure from FDA Clinton Administration TOTAL
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Tabel
Faktor Eksternal
Peluang (opportunities) - Jumlah penduduk - Bentuk negara yang geografis - Perusahaan yang berbentuk Persero - Jumlah SDM memadai - Tersedianya sarana promosi - Perkembangan teknologi Ancaman (threats) - Pesaing baru dan lama - Munculnya produk substitusi - Tuntutan terhadap mutu dan pelayanan - Daya beli konsumen - Kondisi SDM yang berorientasi kepada produk Total
22
23
Important
Understanding of the factors used in the EFE Matrix is more important than the actual weights and ratings assigned.
24
Formulation Framework
External Factor Evaluation Matrix (EFE) Internal Factor Evaluation Matrix (IFE)
Great spirits have always encountered violent opposition from mediocre minds. -- Albert Einstein
26
27
29
Internal Audit
Parallels process of external audit Gather & assimilate information from:
30
Functions of Management
Five basic activities
31
Functions of Management
Function Planning Organizing Motivating Staffing Controlling
32
Strategy Formulation
Strategy Implementation
Strategy Implementation
Strategy Implementation
Strategy Evaluation
Planning
Forecasting Establishing objectives Planning Devising strategies Developing policies Setting goals
33
Organizing
Organizational design Organizational design Organizational design Job specialization Job specialization Job specialization Job descriptions Job descriptions Job specifications Job specifications Job specifications Span of control Span of control Span Unity of command Unity of command Coordination Coordination Job design Job design Job analysis Job analysis Job analysis
Organizing Organizing
34
Motivating
Motivating
Leadership Communication Work groups Job enrichment Job satisfaction Needs fulfillment Organizational change Morale
35
Staffing
Wage & salary admin Employee benefits Interviewing Hiring Firing Training Management development Safety Affirmative action EEO Labor relations Career development Discipline procedures
Staffing
36
Controlling
Quality control Financial control Sales control Inventory control Expense control Analysis of variances Rewards Sanctions
Controlling
37
Marketing
Process of defining, anticipating, creating, and fulfilling customers needs and wants for products and services
38
Marketing
1. 2. 3. 4. 5. 6. 7.
39
Customer analysis Selling products/services Product and service planning Pricing Distribution Marketing research Opportunity analysis
Marketing
Customer surveys Consumer information Market positioning strategies Customer profiles Market segmentation strategies
40
Customer analysis
Marketing
Advertising Sales Promotion
Selling Products/services
41
Marketing
Test marketing Brand positioning Devising warrantees Product/service planning Packaging Product features/options Product style Quality
42
Marketing
Forward integration Discounts Credit terms Pricing Condition of sale Markups Costs Unit pricing
43
Marketing
Warehousing Channels Coverage
Distribution
44
Marketing
Data collection Data input
Marketing research
45
Marketing
Assessing costs Assessing benefits Opportunity Analysis Assessing risks Cost/benefit/risk analysis
46
Finance/Accounting
47
Determining financial strengths and weaknesses key to strategy formulation Investment decision (Capital budgeting) Financing decision Dividend decision
Finance/Accounting
Functions of Finance/Accounting Investment decision (Capital budgeting) 2. Financing decision 3. Dividend decision
1.
48
Leverage ratios
50
Activity ratios
Fixed assets turnover Total assets turnover Accounts receivable turnover Average collection period
51
Profitability ratios
Gross profit margin Operating profit margin Net profit margin Return on total assets (ROA)
52
53
Growth ratios
54
Production/Operations
55
Production/Operations
Design of facility Choice of technology Facility layout Process Process flow analysis Facility location Line balancing Process control
56
Production/Operations
Forecasting Facilities planning Aggregate planning Capacity Scheduling Capacity planning Queuing analysis
57
Production/Operations
58
Production/Operations
Job design Work measurement Workforce Job enrichment Work standards Motivation techniques
59
Production/Operations
Quality control Sampling Quality Testing Quality assurance Cost control
60
Development of new products before competition Improving product quality Improving manufacturing processes to reduce costs
61
Purpose
63
64
& weaknesses
65
a weighted score
66
the total weighted score for the organization possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5
Highest
67
Weight
Rating
Weighted score
.05 .10 .05 .15 .05 .05 .05 .05 .05 .05
4 4 3 4 3 3 3 4 3 3
.20 .40 .15 .60 .15 .15 .15 .20 .15 .15
1 2 2 1 1
1.0
2.75
69
Tabel
Faktor Internal strengths) Kekuatan ( - Keragaman jenis jasa pengiriman - Harga murah - Jaringan pos yang sangat luas - Sebaran lokasi pelayanan - Kemudahan mencapai tempat pelayanan & pengiriman w Kelemahan ( eaknesses) - Ketepatan waktu pengiriman - Kecepatan pengiriman - Kecepatan pelayanan petugas - Informasi biaya dan waktu pengiriman - Kemudahan memperoleh info promosi dan iklan Total
Bobot 00 , 0 0 ,0 0 00 , 0 00 , 0 00 , 0
Rating 0 0 0 0 0
Nilai 0 ,0 0 00 , 0 00 , 0 00 , 0 00 , 0
00 , 0 00 , 0 00 , 0 00 , 0 00 , 0 0
0 0 0 0 0
00 , 0 00 , 0 00 , 0 0 ,0 0 00 . 0 0 ,0 0
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Diantara sejumlah strengths yang dimiliki suatu institusi dapat saja beberapa diantaranya merupakan distinctive competencies. Untuk mengevaluasi apakah suatu strength adalah distinctive competency dapat digunakan metode Barney yaitu dengan konsep VRIO
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VRIO
x Value : apakah faktor tersebut memberikan keunggulan kompetitif pada institusi ? x Rareness : apakah pesaing tidak memiliki faktor tersebut ? x Imitability : apakah tidak mudah untuk memiliki faktor tersebut ? x Organization : apakah institusi memanfaatkan faktor tersebut secara maksimal ? Jika jawab dari keempat : Ya
distinctive competency
72
Formulation Framework
External Factor Evaluation Matrix (EFE) Internal Factor Evaluation Matrix (IFE)
Identifies firms major competitors and their strengths & weaknesses in relation to a sample firms strategic position
74
(CPM)
Critical Success Factor Advertising Product Quality Price Competition Management Financial Position Customer Loyalty Global Expansion Market Share
Avon
LOreal
1 4 3 4 4 4 4 1
4 4 3 3 3 4 2 4
3 3 4 3 3 2 2 3
Total
75
C ritica l S u ccess F a cto rs W eigh t B rand R eco gnitio n 00 . 0 M arket S hare 0. 0 0 F ina ncial S trength 0. 0 0 R&D 00 . 0 P ro duct Q uality 00 . 0 A d vertising 0. 0 0 N u m ber o f R eta il O utlets 00 . 0 P ro duct M ix 00 . 0 D epend o n S upp liers fo r 00 . 0 Q uality T otal 00 . 0
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Formulation Framework
TOWS Matrix SPACE Matrix
Stage 2: The Matching Stage
77
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SWOT ANALYSIS
Asumsi: Suatu strategi yang efektif akan memaksimalkan kekuatan (Strength) dan peluang (Opportunities), dan meminimalkan kelemahan (Weaknesses) dan ancaman ((Threat) Opportunities: Situasi penting dari faktor eksternal yang menguntungkan perusahaan. (perubahan teknologi, membaiknya hubungan pembeli & pemasok, dll) Threat: faktor internal yang tidak menguntungkan perusahaan. (masuknya pesaing baru, lambatnya pertumbuhan pasar, meningkatnya kekuatan pembeli & pemasok, dll) Strength: Kekuatan internal meliputi sumberdaya, keterampilan/ keunggulan lainnya relatif terhadap pesaing dan kebutuhan pasar yang dilayani/ ingin dilayani perusahaan. (sumber daya keuangan, citra, dll) Weaknesses: Kekurangan/ keterbatasan daam sumber daya, keterampilan dan kapabilitas yang menghambat kinerja perusahaan.
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Langkah-Langkahnya :
Pada blok opportunities cantumkan sejumlah opportunities yang diambil dari tabel EFE Pada blok threats cantumkan sejumlah threats yang diambil dari EFE Pada blok strength, cantumkan sejumlah strength yang diambil dari IFE Pada blok weakness cantumkan sejumlah weakness yg diambil dari IFE Dapatkan sejumlah strategi-strategi yang mungkin untuk perusahaan berdasarkan kombinasi dari 4 elemen tersebut
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Matching Stage
TOWS Matrix Threats Opportunities Strengths Weaknesses
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TOWS Matrix
Develop four types of strategies Strengths-Opportunities (SO) Weaknesses-Opportunities (WO) Strengths-Threats (ST) Weaknesses-Threats (WT)
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84
SO Strategies
SO Strategies
85
WO Strategies
WO Strategies
86
ST Strategies
Using firms strengths to avoid or reduce the impact of external threats.
ST Strategies
87
WT Strategies
Defensive tactics aimed at reducing internal weaknesses and avoiding environmental threats.
WT Strategies
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TOWS Matrix
Steps in developing the TOWS Matrix
1. 2. 3. 4.
List the firms opportunities List the firms List the firms List the firms weaknesses
key external key external threats key internal strengths key internal
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TOWS Matrix
Developing the TOWS Matrix
5.
6.
7.
8.
90
Match internal strengths with external opportunities and record the resultant SO Strategies Match internal weaknesses with external opportunities and record the resultant WO Strategies Match internal strengths with external threats and record the resultant ST Strategies Match internal weaknesses with external threats and record the resultant WT Strategies
TOWS Matrix
Leave Blank Strengths-S
List Strengths
Weaknesses-W
List Weaknesses
Opportunities-O
List Opportunities
SO Strategies
Use strengths to take advantage of opportunities
WO Strategies
Overcome weaknesses by taking advantage of opportunities
Threats-T
List Threats
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ST Strategies
Use strengths to avoid threats
WT Strategies
Minimize weaknesses and avoid threats
SWOT MATRIX
STRENGHTS (S) List Internal Strenghts Here S-O Strategies Generate strategies here that use Strenghts to take adventage of opportunities S-T Strategies Generate strategies here that use strenghts to avoid threats
WEAKNESSES (W) List Internal Weaknesses Here W-O Strategies Generate strategies here that take adventage of opportunities by overcoming weaknesses W-T Strategies Generate strategies here that minimize weaknesses and avoid threats
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TOWS Matrix
Strengths 0 Customer satisfaction. . 0 Copyright to one-click . method. 0 Humanitarian efforts. . 0 Strong Research & . Development. 0 Exclusive agreements . with Internet sites. 0 Ability to track . customer interests. 0 Formation of strategic . alliances with physical retailers.
Weaknesses 0 Accumulated deficits. . 0 Anticipates further losses. . 0 Slowing growth, core . business, U.S. Books, Music, & Video. 0 Lawsuit with Barnes & . Noble over patent for oneclick method. 0 Class Action Suits filed . with stockholders. 0 Doses not have a mission . statement. 0 Financial position. .
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TOWS Matrix
S-O Strategies Opportunities 0 Expand European presence . 0 Continuous increase of . through strategic alliances internet users. with established online 0 Increasing business to . retailers or physical consumer e-commerce. retailers 0 U. S. Internet economy . (S0 ,O0 ,O0 ,O0 ,O0 ). 0 Refocus on core business . projections 0 trillion .0 by taking full advantage of by 0000 . e-books sales projection 0 Brick & Mortar . (S0 ,S0 ,S0 ,O0 ,O0 0 ,O ). companies lack technology expertise. 0 European on-line . projections 0 trillion .0 by 0000 .
W-O Strategies 0 Enter into more strategic . agreements with U. S. physical retailers possibly Wal-mart (W0 ,W0 ,W0 ,O0 ,O0 ).
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TOWS Matrix
Threats 0 Seasonality of internet . usage & revenue generation. 0 Economic downturn & . global recession. 0 Low consumer confidence . levels. 0 Competition. . 0 Security/Privacy of . information concerns. 0 Internet Taxation. . 0 Market valuation . .
S-T Strategies
W-T Strategies
0 Reduce fulfillment costs by . reduction in number of fulfillment centers (W0 ,W0 ,W0 ,W0 ,T0 ,T0 ,T0 ,T0 ).
0 Establish direct order link . with publishers/manufacturers (S0T0 , ). 0 Enhance attractiveness of . platform (S0 0 0 0 0 0 ,S ,S ,S ,T ,T ). 0 Promote ease of use . (S0 0 0 ,T ,T ).
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FORMULATION FRAMEWORK
TOWS Matrix SPACE Matrix
Stage 2: The Matching Stage
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SPACE Matrix
SPACE = The Strategic Position and ACtion Evaluation
Dikemukakan oleh : R. Howe, R. Mason & K. Dickel Diadaptasi oleh : Fred R. David Menilai seluruh strategic factors Mengolah sistem Ditampilkan pada koordinat 2 dimensi
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SPACE Matrix
Strategic Position and Action Evaluation Matrix
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SPACE Matrix
Two Internal Dimensions
99
SPACE Matrix
Overall Strategic position determined by:
Financial Strength [FS] Competitive Advantage [CA] Environmental Stability [ES] Industry Strength [IS]
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SPACE Matrix
Developing the SPACE Matrix:
101
EFE Matrix IFE Matrix Financial Strength Competitive Advantage Environmental Stability Industry Strength
SPACE Matrix
102
Select variables to define FS, CA, ES, & IS Assign numerical ranking from +1 (worst) to +6 (best) for FS and IS; Assign numerical ranking from 1 (best) to 6 (worst) for ES and CA. Compute average score for FS, CA, ES, & IS
SPACE Matrix
Internal Strategic Position External Strategic Position
103
SPACE Matrix
Internal Strategic Position External Strategic Position
Competitive Advantage CA
Market share Product quality Product life cycle Customer loyalty Competitions capacity utilization Technological know-how Control over suppliers & distributors
104
Conservative
SPACE Matrix FS
+6 +5 +4 +3 +2 +1
Aggressive
CA
-6 -5 -4 -3 -2 -1 -1 -2 -3 -4 -5 +1 +2 +3 +4 +5 +6
IS
Defensive
105
-6
ES
Competitive
X axis: 0 (-0 = 0 + )
CA
IS
Defensive
ES
Competitive
106
Aggressive
IS
Y axis Financial strength Environmental stability X axis Industry strength 107 Competitive advantage
Defensive
ES
Competitive
+0 -0 0 -0
Y axis: 0 (-0 = -0 + )
X axis: 0 (-0 = 0 + )
+2,75
Weakness
-2,50
Strength
Rata-Rata Opportunities = +33/12 = + 2,75 Rata-Rata Threats = -28/13 = - 2,15 Rata-Rata Strength = +34/11 = + 3,09
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-2,15
WEAKNESSES
STRENGTHS
THREATS 109
Formulation Framework
TOWS Matrix SPACE Matrix
Stage 2: The Matching Stage
110
BCG Matrix
Boston Consulting Group Matrix
111
Enhances multidivisional firms efforts to formulate strategies Autonomous divisions (or profit centers) constitute the business portfolio Firms divisions may compete in different industries requiring separate strategy Graphically portrays differences among divisions Focuses on market share position and industry growth rate Manage business portfolio through relative
BCG Matrix
Relative Market Share Position
High 1.0 High +20 Medium .50
Low 0.0
Stars II
Question Marks I
Medium 0
Dogs IV
Low -20
dn I
Bersaing sebagai satu bisnis Apple Computer McDonalds Corp. Wrigley Maytag Texas Air Ford Motor
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Membagi kompetensi bisnis satu sama lain P&G Philip Morris Dow-Corning Johnson & Johnson Du Pont Gilette
Tiap unit bisnis otonom pada pasar yang berbedabeda ITT Rockwell GE LTV Textron Litton
Pendekatan Portofolio
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MATRIKS BCG
Matrixs BCG merupakan model yang sederhana dan paling banyak digunakan. Model ini berguna bagi top manager yang membawahi unit bisnis yang berbeda-beda (diversified forms), khususnya untuk mengalokasikan sumber-sumber (resources) dari satu unit ke unit bisnis lainnya. Matriks ini juga digunakan untuk memperkirakan posisi pasar suatu unit bisnis beberapa tahun ke depan bila tidak dilakukan perubahan kebijakan (policies) selama ini
116
Star
Question Mark
Market Growth
Cash Cow
Dog
Low Strong
117
Weak
Stars
Question marks
5
Cash cows
?? ?
2
Dogs
1 8
6
10x 4x 2x 1.5x 1x
7
Relative Market Share
.5x .4x .3x .2x .1x
118
Relative market share dapat dihitung dari ratio market share unit bisnis dengan market share pesaing
120
Star
Cash generated +++
Question Mark
Cash generated + Cash use ----
Market Growth
Cash use
--0
Cash Cow
Cash generated +++ Cash use ++
Dog
Cash generated + Cash use 0
Low Strong
121
Weak
122
Question Mark
Earnings: low, unstable, growing Cash flow: negative Strategy: build market share or harvest/divest
Market Growth
Cash Cow
Earnings: high stable Cash flow: high stable Strategy: hold or add market share
Dog
Earnings: low, unstable Cash flow: neutral or negative Strategy: harvest/divest
-10%
10
123
1.0
.1
B
124
C
Market Growth A Cash Cow Dog
A
-10% 10
125
B
.1
Cash Cow 3
Dog 2 4
-10% 10
126
.1
Question mark
??? ???
Berada pada kuadran 1, dimana relative market share-nya rendah (low), namun dengan market groqth rate yang tinggi (high) Ini mengingat posisi market share yang rendah, menunjukkan cash generated yang rendah pula, dan cash use yang tinggi pada market growth yang tinggi. Dalam kondisi bisnis question mark ini perusahaan harus memutuskan untuk memperkuat diri dengan strategi intensif (penetrasi pasar, pengembangan pasar, atau pengembangan produk) atau menjualnya bila pelaksanaan strategi terlalu mahal. Misi yang dituntut dari anak perusahaan ini adalah membangun (build) market share. Dalam daur hidup bisnis, posisi ini terletak pada masa perkenalan atau masa-masa awal bisnis (introduction) perusahaan
127
Star
Berada pada kuadran II, menunjukkan baik relative market share dan market growth yang tinggi, serta menunjukkan cash generated maupun cash use yang tinggi pula. Posisi star merupakan posisi dominan yang dikejar setiap perusahaan dan posisi yang paling kuat, namun harus dipertahankan dengan investasi yang memadai. Hal tersebut dapat dilakukan dengan strategi integrasi, strategi intensif atau joint ventures, melalui integrasi ke hilir (forward), ke hulu (backward) atau ke pesaing (horizontal), serta melalui penetrasi pasar, pengembangan pasar, atau pengembangan produk dan joint ventures. Misi yang perlu dilakukan adalah mempertahankan (hold) market share. Posisi hold sama dengan siklus pertumbuhan (growth) pada business life cycle.
128
Dog
Berada pada kuadran IV, berada pada posisi yang lemah dan industri sudah tidak menarik. Biasanya strategi yang baik adalah melakukan divestasi, kecuali masih ada kemungkinan memperbaikinya dengan biaya yang tidak terlalu mahal. Misi yang dilakukan adalah melakukan (divest) bisnis tersebut. Disini perusahaan berada dalam keadaan declining atau mengalami siklus
130
KATEGORI
MISI
DAUR HIDUP
Introduction Growth Mature Decline
131
132
Medium
Low
134
GE/McKinsey Matrix & Arah Strategis Memposisikan berbagai divisi organisasi dalam 9-sel berdasarkan analisa SWOT dengan weighted scores (dari matriks EFE and IFE). Strategi yang dapat ditempuh, adalah: Grow and build (divisi pada sel 1, 2 or 4): market penetration, market development, product development or backward, forward and horizontal integration. Hold and maintain (divisi pada sel 3, 5, 7):
135
Industry Attractiveness
High
Invest/Grow 1 Invest/Grow 2 Dominate/ 3 Strongly Selectively Delay/ (build) (build) divest Earn/ 5 Protect (hold) Harvest/ 8 divest Harvest/ 6 divest
Low
Harvest/ 9 divest
136
Consolidate
Improve
Competitive Position
Maintain
Harvest
Liquidate
Divest
Selective
137
ADL Matrix adalah matriks yang dibuat oleh konsultan Arthur D. Little sebagai penyempurnaan dari GE/McKinsey Matrix Perbedaannya: Pada ADL Matrix di-plotkan posisi daya saing (competitive position) perusahaan terhadap tahaptahap siklus hidup (life cyclus dari produk, pasar, dan industri. Penggunaan ketiga matriks dalam proses portofolio bisnis barangkali akan memberikan hasil yang lebih baik.
138
Country Attractiveness
High
Invest/Grow
Dominate/ Divest/ Joint Venture Selective Strategies Harvest/ Divest/ Combine/ License
Medium
Low
139
Formulation Framework
TOWS Matrix SPACE Matrix
Stage 2: The Matching Stage
140
POSISI I, II, IV
Posisi perusahaan yang menempati sel I, II & IV dapat digambarkan sebagai GROW & BUILD. Strategi yang cocok untuk masing-masing posisi sel ini adalah : Intensive (market penetration, market development & product development) atau integration (backward integration, forward integration, horizontal integration)
142
I
3,0
II
III
IV
VI
RENDAH
VII
VIII
IX
1,0
143
IE MATRIX : AMAZON
The IFE Total Weighted Score Strong 0 to 0 .0 .0 I Average 0 to 0 0 .0 .0 II
0
High 0 to 0 0 . 0 .0
Weak 0 to 0 0 . 0 .0 III 0
Low 0 to 0 0 . 0 .0
VII
VIII
IX
144
EFE 0 .0 0 .0 0 .0
IFE 0 .0 0 .0 0 .0
Formulation Framework
TOWS Matrix SPACE Matrix
Stage 2: The Matching Stage
145
Popular tool for formulating alternative strategies All organizations (or divisions) can be positioned in one of four quadrants Based on two evaluative dimensions:
146
Quadrant II Market development Market penetration Product development Horizontal integration Divestiture Liquidation
1. 2. 3. 4. 5. 6. 7.
Quadrant I Market development Market penetration Product development Forward integration Backward integration Horizontal integration Concentric diversification
Quadrant III Quadrant IV Retrenchment 1. Concentric diversification Concentric diversification 2. Horizontal diversification Horizontal diversification 3. Conglomerate diversification Conglomerate diversification 4. Joint ventures Liquidation SLOW MARKET GROWTH
148
149
151
Quadrant IV
152
Formulation Framework
153
QSPM
Quantitative Strategic Planning Matrix
Only technique designed to determine the relative attractiveness of feasible alternative actions
154
QSPM
Quantitative Strategic Planning Matrix
155
Tool for objective evaluation of alternative strategies Based on identified external and internal crucial success factors Requires good intuitive judgment
QSPM
Quantitative Strategic Planning Matrix
List the firms key external opportunities & threats; list the firms key internal strengths and weaknesses Assign weights to each external and internal critical success factor
156
QSPM
Quantitative Strategic Planning Matrix
Examine the Stage 2 (matching) matrices and identify alternative strategies that the organization should consider implementing Determine the Attractiveness Scores (AS)
157
QSPM
Quantitative Strategic Planning Matrix
Compute the total Attractiveness Scores Compute the Sum Total Attractiveness Score
158
QSPM
Strategic Alternatives
Key External Factors Economy Political/Legal/Governmental Social/Cultural/Demographic/ Environmental Technological Competitive Key Internal Factors Management Marketing Finance/Accounting Production/Operations Research and Development Computer Information 159 Systems Weight Strategy 1 Strategy 2 Strategy 3
QSPM
Strategic Alternatives Key Internal Factors Strengths Customer satisfaction Copyright to One-click online shopping Humanitarian efforts Strong Research & Development Exclusive agreements with Internet sites (Associates) Ability to track customized interests through customized home page Formation of strategic alliances Agreement with AOL Weaknesses Accumulated deficits/Anticipates further losses Financial position Slowing growth, core business-U.S. Books, & Music Video Lawsuit with Barnes & Noble over patent to 0 click method Class action suits filed by stockholders Does not have a mission statement SUBTOTAL Weight 00 .0 0 .0 0 0 .0 0 0 .0 0 00 .0 00 .0 00 .0 00 .0 00 .0 00 .0 00 .0 00 .0 00 .0 0 .0 0 00 .0 Enter into strategic agreements w/physical retailers AS TAS 0 00 .0 0 00 .0 0 0 0 0 0 0 00 .0 0 .0 0 00 .0 00 .0 0 .0 0 00 .0 00 .0 Expand European presence through strategic alliances AS TAS 0 00 .0 0 00 .0 0 0 0 0 0 0 00 .0 00 .0 00 .0 00 .0 00 .0 00 .0 00 .0
160
QSPM
Limitations:
Requires intuitive judgments and educated assumptions Only as good as the prerequisite inputs
161
QSPM
Positives:
Sets of strategies examined simultaneously or sequentially Requires the integration of pertinent external and internal factors in the decision-making process
162
Culture: The set of shared values, beliefs, attitudes, customs, norms, personalities, heroes, and heroines that describe a firm
163
164
165
Equifinality Satisfying Generalization Focus on Higher-Order Issues Provide Political Access on Important Issues
167
Discussion
Nike vs Reebok Kijang vs Kuda Nokia vs Sony Ericson What types of strategies?
Discussion
Pepsi vs Coke Mc Donald vs KFC Who will be winner?