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Str  Mgt  Lesson 5  Str Formulation Situation Analysis & Business Str
 

Str Mgt Lesson 5 Str Formulation Situation Analysis & Business Str

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

    • Situational Analysis: SWOT Analysis
      • What is SWOT?
      • SA=O/(S-W)
      • SA= strategic alternative
      • O= opportunities
      • S= strengths
      • W= weakness
    • 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
    • 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
    • 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
    • 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
    • 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
    • Porter’s Generic Strategies Focused differentiation Cost focus Narrow Target Differentiation Differentiation Lower Cost Cost leadership Broad Target
    • 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
    • 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
    • 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
    • Market Location Tactics: Where to compete
      • Offensive Tactics
      • Frontal Assault
      • Flanking Maneuver
      • Bypass Attack
      • Encirclement
      • Guerrilla Warfare
    •  
    • Market Location Tactics: Where to compete
      • Defensive Tactics
      • Collusion
      • Strategic Alliance
      • Mutual Service Consortia
      • Joint Venture
      • Licensing Agreement
      • Value-Chain Partnership