Input•EFE Matrix,•IFE (Internal FactorEvaluation) Matrix, and•CP (Competitive Profile)MatrixMatching•SWOT ( Strength-Weakn...
ListAssignWeightAssignRatingMultiplySum UpKey External Factors identifiedWeight Ranging from 0 (Not Important) to 1 (Very ...
ListAssignWeightAssignRatingMultiplySum UpKey Strength & WeaknessWeight Ranging from 0 (Not Important) to 1 (Very Importan...
List KeyExternalOpportunitiesList KeyExternalThreatsList KeyInternalStrengthMatch IW toEO to get WOMatch IS to EOto get SO...
I II IIIIV V VIVII VIII IXIFE Total Weighted ScoreEFE TotalWeightedScoreGrow & Build• Backward Forward & Horizontal Integr...
External opportunities/threats and internal strengths/weakness(Input Stage of SFAF)Assigning weights to each external and ...
STRATEGY FORMULATION
STRATEGY FORMULATION
STRATEGY FORMULATION
STRATEGY FORMULATION
STRATEGY FORMULATION
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STRATEGY FORMULATION

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STRATEGY FORMULATION

  1. 1. Input•EFE Matrix,•IFE (Internal FactorEvaluation) Matrix, and•CP (Competitive Profile)MatrixMatching•SWOT ( Strength-Weakness-Opportunities-Threat) Matrix,•SPACE (StrategicPosition andAction Evaluation)Matrix,•IE (Internal-External) Matrix,•GS (GrandStrategy) MatrixDecision Making•QSP (QuantitativeStrategic Planning)Matrix
  2. 2. ListAssignWeightAssignRatingMultiplySum UpKey External Factors identifiedWeight Ranging from 0 (Not Important) to 1 (Very Important)Signify relative importance of the factor to be successful in the IndustryRating between 1(poor response) and 4(superior response)based on effectiveness of the organization’s strategiesWeight by Rating to get weighted scoreTo get Weighted Score of the OrganisationKey Take Away from EFE Highest – 4 , Lowest – 1 , Average – 2.5 Indicates organisations response to threats and weaknesses Total weighted score of 4.0 = Organization response is outstanding to threats & weaknesses Total weighted score of 1.0 = Firm’s strategies not capitalizing on opportunities or avoidingthreats
  3. 3. ListAssignWeightAssignRatingMultiplySum UpKey Strength & WeaknessWeight Ranging from 0 (Not Important) to 1 (Very Important)Signify relative importance of the factor to be successful in the IndustryRating between 1(major weakness) and 4(major strength)*Weight by Rating to get weighted scoreTo get Weighted Score of the Organisation*strengths must receive a 4 or 3 rating and weaknesses must receive a 1 or 2 ratingKey Take Away from IFE Highest – 4 , Lowest – 1 , Average – 2.5 Total weighted score below 2.5 = Characterize organizations that are weak internally Total weighted score above 2.5 = Indicate a strong internal position
  4. 4. List KeyExternalOpportunitiesList KeyExternalThreatsList KeyInternalStrengthMatch IW toEO to get WOMatch IS to EOto get SOList KeyInternalWeaknessMatch IS to ETto get STMatch IW toET to get WT
  5. 5. I II IIIIV V VIVII VIII IXIFE Total Weighted ScoreEFE TotalWeightedScoreGrow & Build• Backward Forward & Horizontal Integration• Market Penetration• Market Development• Product DevelopmentHold & Maintain• Market Penetration• Product DevelopmentHarvest & Divest• Retrenchment• DivestitureStrong3.0 to 4.0Average2.0 to 2.99Weak1.0 to 1.99High3.0 to 4.0Medium2.0 to 2.99Low1.0 to 1.994.03.02.01.03.0 2.0 1.0
  6. 6. External opportunities/threats and internal strengths/weakness(Input Stage of SFAF)Assigning weights to each external and internal factors(Input Stage of SFAF)Strategy Attractiveness Score( AS)Total Attractiveness Score (TAS)Sum Total Attractiveness Score (STAS)Identifying alternative strategies( Matching Stage of SFAF)Objectively Indicates whichalternative strategies are best

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