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Str Mgt Lesson 5 Str Formulation Situation Analysis & Business Str
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Str Mgt Lesson 5 Str Formulation Situation Analysis & Business Str



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  • 1. Situational Analysis: SWOT Analysis
    • What is SWOT?
    • SA=O/(S-W)
    • SA= strategic alternative
    • O= opportunities
    • S= strengths
    • W= weakness
  • 2. SWOT Analysis: Criticisms
    • Generates lengthy lists
    • Uses no weights to reflect priorities
    • Same factor can be placed in 2 categories
    • Requires only a single level of analysis
    • No logical link to strategy implementation
  • 3. Generating Alternative Strategies: TOWS Matrix
    • SWOT can be used to generate a no of possible alternative strategies
    • TOWS is just another way of saying SWOT
    • Illustrates how external opportunities & threats can be matched with firm’s internal strengths & weaknesses to result in 4-sets of possible strategies alternative
  • 4. TOWS Matrix WT Strategies ST Strategies Threats List 5-10 WO Strategies SO Strategies Opportunities List 5-10 (IFAS) Weakness List 5-10 Internal Factors Strength List 5-10 External factors-EFAS
  • 5. Porter’s Competitive Strategies
    • Corporate strategy
    • what industry the firm should be in
    • Business strategy
    • How the firm should compete or cooperate in each strategy
    • 2-generic Strategies
    • Can be pursued by any type or size of business firm, even by not-for-profit organizations
  • 6. Porter’s Competitive Strategies
    • Lower cost Strategy
    • ability of a firm to design, produce & market a comparable product more efficiently than its competitors
    • Differentiation Strategy
    • ability of a firm to provide unique & superior value to the buyer in terms of product quality, special features, or after-sale service
    • 4-variations of 2-generic Strategies
  • 7. Porter’s Generic Strategies Focused differentiation Cost focus Narrow Target Differentiation Differentiation Lower Cost Cost leadership Broad Target
  • 8. Which is the best Generic Strategy?
    • Before selecting one of Porter’s generic competitive strategies, the management should assess its feasibility in terms of resources & capabilities
    • Porter lists the following requirement for generic competitive strategies
  • 9. Requirement for Generic Competitive Strategies: Overall Cost Leadership
    • Sustained capital investment
    • Process engineering skills
    • Low cost distribution systems
    • Tight cost control
    • Structured organization & responsibilities
    • Incentives based on meeting targets
  • 10. Requirement for Generic Competitive Strategies: Differentiation
    • Strong marketing abilities
    • Product engineering
    • Strong cooperation from channels
    • Long tradition in industry
    • R&D, product development, marketing- all well coordinated
    • Ability to attract highly skilled labor
  • 11. Market Location Tactics: Where to compete
    • Offensive Tactics
    • Frontal Assault
    • Flanking Maneuver
    • Bypass Attack
    • Encirclement
    • Guerrilla Warfare
  • 12.  
  • 13. Market Location Tactics: Where to compete
    • Defensive Tactics
    • Collusion
    • Strategic Alliance
    • Mutual Service Consortia
    • Joint Venture
    • Licensing Agreement
    • Value-Chain Partnership