Strategy Analysis and Choice-Chapter 6
Cash Cows - Quadrant III
Generate cash in excess of their needs should be managed to maintain their strong position for as long as possible
Personal Preferences
Get unduly embedded in strategy choice decisions.
Three Major Regions
Grow and build, Hold and maintain, Harvest or divest
Quadrant IV
Have characteristically high cash-flow levels and limited internal growth needs and often can pursue related or unrelated diversification successfully
IE Matrix
is based on two key dimensions: the IFE total weighted scores on the x-axis and the EFE total weighted scores on the y-axis
Board of directors
A group of individuals who are elected by the ownership of a corporation to have oversight and guidance over management and who look out for shareholders' interests
Most Attractive
A manageable set of the alternative strategies must be developed
Major Benefit
BCG Matrix is that it draws attention to the cash flow, investment characteristics, and needs of an organization's various divisions.
Grand Strategy Matrix
Based on two evaluative dimensions: competitive position and market (industry) growth
Dogs - Quadrant IV
Compete in a slow- or no-market-growth industry businesses are often liquidated, divested, or trimmed down through retrenchment
Political Maneuvering
Consumes valuable time, subverts organizational objectives, diverts human energy, and results in the loss of some valuable employees
Quadrant I
Continued concentration on current markets (market penetration and market development) and products (product development) is an appropriate strategy
Quadrant III
Must make some drastic changes quickly to avoid further decline and possible liquidation, Extensive cost and asset reduction (retrenchment) should be pursued first
Quantitative Strategic Planning Matrix (QSPM)
Objectively indicates which alternative strategies are best uses input from Stage 1 analyses and matching results from Stage 2 analyses to decide objectively among alternative strategies
Question marks - Quadrant I
Organization must decide whether to strengthen them by pursuing an intensive strategy (market penetration, market development, or product development) or to sell them
Stars - Quadrant II
Represent the organization's best long-run opportunities for growth and profitability
Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix
SO (strengths-opportunities) Strategies WO (weaknesses-opportunities) Strategies ST (strengths-threats) Strategies WT (weaknesses-threats) Strategies
Strategies
The advantages, disadvantages, trade-offs, costs, and benefits should be determined.
Quadrant II
Unable to compete effectively need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness
Strategic Position and Action Evaluation (SPACE) Matrix
four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization
BCG Matrix
graphically portrays differences among divisions in terms of relative market share position and industry growth rate. Allows a multidivisional organization to manage its portfolio of businesses by examining the relative market share position and the industry growth rate of each division relative to all other divisions in the organization