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Strategic Management exam 1 (chapters 1-6)
Terms in this set (112)
It is intuitively simple, contains numbers, lends itself to group discussion, and contains the basic building blocks of a strategic plan, namely strengths, weaknesses, opportunities, and threats.
Why do you believe SWOT analysis is so commonly used by businesses in doing strategic planning?
-An external threat could be "a 10% annual decline in state funding."
-A weakness could be "lack of sufficient external fund raising."
-The strategy to offset could be for the university to seek external funds by placing people's names on buildings, classrooms, and even seats in classrooms.
For your college or university, identify a strategy that would exemplify the matching concept evidenced in SWOT analysis.
Diagram the comprehensive strategic-management model
-strategic planning is formulating a company's game plan
-long range planning is deciding on future actions with the aim to optimize for tomorrow, less effective and comprehensive
Distinguish between long range planning and strategic planning
Mr. Deming insisted on seeing #'s, $'s, ratios, and %'s because they are relevant and necessary for factual planning
As cited in the chapter, Edward Deming, a famous businessman, once said, "In God we trust. All others bring data." What did Deming mean in terms of developing a strategic plan?
Opportunities- 1) The blackboard collaborate technology for online classes has become easier, more popular, and less expensive.
2) The USA economy and GDP is growing 6% annually.
3) Construction costs for building new buildings has declined 14% year-over-year.
Threats- 1) The local tech school has cheaper tuition and easier classes that transfer into our university.
2) Our rival firms all offer a BBA Degree online.
3) There is an 8% decline in population in the last few months in our county.
Your university has fierce competitors. List three external opportunities and three external threats that face your university.
Strengths - 1) Our College of Business is AACSB accredited at both the BBA and MBA levels.
2) Our average classroom size is 19 students.
3) Our university has a new Nursing Program and Building.
Weaknesses - 1) Only 50% of our business faculty hold a PhD in business.
2) Our university lacks sufficient dorm space for students.
3) Our university lacks sufficient parking for students and faculty
List three internal strengths and three internal weaknesses that characterize your university.
-aid in evaluation
-helps create energy
List reasons why objectives are essential for organizational success
It requires students to know how to use finance, accounting, marketing, and MIS
Explain why the strategic management class is often called a "capstone course"
External assessment, because it requires gathering information from the competitors
What aspect of strategy formulation do you think requires the most time? Why?
Requires a lot of intuitive judgement (intuition), you cannot let tuition dominate or else politics takes over
Why is it so important to integrate intuition and analysis in strategic management?
It is the first step for strategic planning, it sets everything. It allows all employees and managers to be on the same mission that corporate is on
Explain the importance of a vision and a mission statement
In the strategic plan model, the first thing to do is establish the objective, then determine some strategies, the policies are implementations so they come last
-strategies are the means by which long term objectives will be achieved.
-Annual objectives are short term milestones that the organization must achieve to reach long term objectives.
-policies are the means by which objectives will be achieved
Discuss relationships among objectives, strategies, and policies
The strategy club website provides the new, free, excel Student Template designed to help students generate the matrices required for case analyses. The site also provides several sample student case presentations and other resources to benefit strategic management students.
Describe the content available on the strategy club website at www.strategyclub.com.
financial-organizations are typically more successful, have improvement in sales, profitability, and productivity
non-financial-enhanced awareness of external threats, improved understanding of competitor strategies, increased employee productivity, reduced resistance to change
List four financial and four non-financial benefits of a firm engaging in strategic planning
vision, mission, strengths, objectives, strategies, and policies
In sequential order in the strategic planning process, arrange the following appropriately: policies, objectives, vision, mission, strengths, and strategies
Label the following as an opportunity, strategy, or strength
a. XYZ Inc. is hiring 50 or more salespersons
b. XYZ Inc. has 50 salespersons
c. XYZ Inc.'s rival firm has only 50 salespersons
Arguably the most important strategic decision facing firms is how best to allocate resources across divisions. To facilitate this decision making, internal strengths and weaknesses should be stated in divisional terms to the extent possible.
Explain why internal strengths and weaknesses should be stated in divisional terms to the extent possible.
Business people already know the vague generalities, and desperately need to know the specifics, in order to decide among many available good alternative strategies. Thus, the underlying external opportunities/threats must be stated in specific terms to give guidance in formulating and selecting alternative strategies. Avoid vagueness. Vagueness is not helpful in making tough resource allocation decisions among divisions, regions, product, etc
Explain why both internal and external factors should be stated in specific terms, i.e., using #'s, %'s, $'s, ratios, and comparisons over time, to the extent possible.
the feedback loop, because a change in any of these boxes will require a change somewhere else
What does recent research reveal t be the most important component or activity in the strategic-management process
This is a true statement because the average corporate return on investment ranges from 4 to 5 percent; once firm's fall below that level of top line (revenue) and/or bottom line (net income) growth, then shareholders can easily get higher returns on their money.
Regarding the "survival, growth, and profitability component, for publically held firms, shareholders oftentimes expect at least a 4 percent annual growth in revenues. Explain why is this statement true.
effective vision statements exhibit the following five characteristics; these five attributes can be used as guidelines for writing or evaluating vision statements. Any vision statement that scores a 5 out of 5 on these characteristics is exemplary.
1. Clear - reveals type of industry
2. Futuristic - reveals what the firm strives to become or accomplish within five years
3. Concise - one sentence in length
4. Unique - reveals the firm's competitive advantage
Inspiring - motivates to readers to support the firm
Explain the 5 by 5 Test associated with vision statements.
It is not clear- does not reveal the type of industry and it is not futuristic- does not reveal what the industry strives to become or accomplish in five years
Critique the following vision statement by Stokes Eye Clinic: "Our vision is to take care of your vision"
We seek students locally and globally of all ages and ethnic backgrounds, providing learning and knowledge in a friendly, considerate manner.
For a university, students are the customer. Write a single sentence that could be included in your university's mission statement to reveal the institution's market and product/service components written from a customer perspective.
-statement of purpose
-statement of beliefs
-statement of business principles
- A good place to look for a company's mission statement is on the firm's website or its annual report (form 10-k)
What are some different names for "mission statement," and where will you likely find a firm's mission statement?
Gives the managers a mission to strive for so they will all be at a consensus (on the same page)
Explain how developing a mission statement can help resolve divergent views among managers in a firm
-it is premature, the reader does not know enough
-the purpose is to get everyone on board with the overall mission so you do not want to overwhelm them with quantitative data
Explain why a mission statement should not include monetary amounts, numbers, percentages, ratios, goals, or objectives.
-self concept is a distinctive competence, it is what the firm's major competitive advantage is (FMU has the cheapest tuition)
-philosophy is the basic beliefs, values, aspirations, and ethical priorities of the firm (FMU wants to provide its students with a valued education at an affordable cost)
Distinguish between the self-concepts and the philosophy components in a mission statement. Give an example of each for your university
The mission statements of profit versus nonprofit organizations would not differ in the characteristics or the components
How would the mission statements of a for-profit and a nonprofit organization differ?
Vision: We strive to have the lowest prices on high quality products, that our customers can enjoy all around the world, now and always.
Mission:Our wide variety of high-quality retail products offers convenience and affordability to money savvy trendsetters around the world. We use modern day databases which allows our customers to shop in the comfort and safety of their home. Our ability to give our customers low prices and fast shipping allows us to be the largest internet retailer in the world. Our organization has a social responsibility, which is what guides us in how we treat our employees, our environment and our customers.
Write a vision and mission statement for an organization of your choice
Compile and organize external factors into two data sets, opportunities and threats, developing a full list of perhaps 50 to 100 factors relevant to the nine external areas described in the chapter. Then, narrow your data sets down to 20 key external factors that include specifically 10 opportunities and 10 threats. (Note: We use 10 and 10 since organizations commonly use this breakdown and the template at www.strategyclub.com uses 10 and 10). There are literally a 100+ external factors that impact an any firm at any given time, so a narrow list must be determined from a full list that results from relevant research.
Explain why it is important to develop both a full and narrow list of key external factors in developing an EFE Matrix.
A score of 3.67 is outstanding compared to a score of 1.59 that is well below average. The 3.67 implies that the firm's strategies may need changing quite little whereas the 1.59 means the firm's strategies are not effective especially from an external perspective.
Explain the significance of an EFE Matrix total weighted score of 3.67 versus a 1.59.
A score of 1.88 means the company is losing the battle to be successful versus rival firms. Substantial strategy changes are likely needed especially in areas in the CPM where the firm scores a 1 or 2 versus rival firms' scores of 3 or 4.
What does a CPM total weighted score of 1.88 imply for a company
No. Usually the summed weights for opportunities should exceed the summed weights for threats, because firms strive to formulate and implement strategies based on opportunities (and strengths) rather than being based on threats (and weaknesses).
In an EFE Matrix, should the weights for opportunities be designed to roughly equal the weights for threats? Why?
There are ten external forces that can be divided into five broad categories:
(1) economic forces
(2) social, cultural, demographic, and environment (SCDE) forces
(3) political, governmental, and legal forces
(4) technological forces
(5) competitive forces.
The relative importance of various factors change over time and person so collaboration is essential in reaching consensus to help assure understanding and commitment from respondents.
List the 10 external forces discussed in this chapter. When and why would some forces be more important than others?
Online buying and selling has skyrocketed as smartphones have become so powerful and so pervasive from ages 5 to 95 - to the demise of traditional brick-and-mortar retailers. Other external factors such as free shipping, zero sales tax, comparative shopping, and rock-bottom pricing have also decimated traditional retailers.
How have external factors resulted in a major overhaul to the traditional retail industry as we once knew it?
The EFE Matrix is critically important as, together with an IFE Matrix, it provides the foundation for strategic planning. The CPM is helpful and the authors always use it to garner information and make decisions, but the EFE Matrix is of paramount importance.
Compare and contrast the EFE Matrix with a CPM in terms of value provided for a strategist in performing an external assessment?
1/3 = 0.33 = 33%
This concept is very important because it shows how drastic the difference in a rating of 3 (above average) and 4 (superior)
Mathematically, how much more important is a rating of 4 compared to a rating of 3? Why is this concept important in developing strategic planning matrices?
Various legal and ethical ways to obtain competitive intelligence include the following:
· Hire top executives from rival firms
· Reverse engineer rival firms' products
· Utilize surveys and interviews of customers, suppliers, and distributors
· Conduct drive by and on-site visits to rival firm operations
· Search on-line databases
· Contact government agencies for public information about rival firms
· Systematically monitor relevant trade publications, magazines, and newspapers
· Include gathering competitive intelligence in the job description of salespersons
Some illegal/unethical ways include bribery, wire tapping, conducting job interviews with no intent of hiring but rather simply to gain information, lying, sabotage, coercing, and stealing
List some legal/ethical ways to gather competitive intelligence. List some illegal/unethical ways.
Social networking sites such as Facebook, Twitter, and Instagram provide opportunities for many companies in terms of broadening exposure to a wider market, but overlooking these technological trends or waiting to long to act on them may represent a threat to a company's survival. Bad news can spread very fast on social network sites, representing a major threat to firms. Good news can also spread very fast, representing a major opportunity to firms.
Explain how Facebook, Twitter, and Instagram can represent a major threat or opportunity for a company.
Yes, it will still allow you to see where the firm has advantages and weaknesses against other firms
If your CPM has three firms and they all end up with the same Total Weighted Score, would the analysis still be useful? Why.
The EFE ratings show how well a firm is doing on each factor. EFE is an external factor evaluation matrix that lists and rates all the opportunities or threats for the company. 4 is superior, 3 is above average, 2 is average, and 1 is poor.
Explain why it is appropriate for ratings in an EFE Matrix to be 1, 2, 3, or 4 for any opportunity or threat.
No firm can do everything that will benefit them. Prioritization is a key aspect of strategic planning, including in selection of key external factors. About 40 total would dilute the significance of the most important factors. About 10 would leave too much information on the table. The set of external factors will ultimately be matched with internal factors to yield alternative strategies, so 40 would be overwhelming and 10 would likely exclude some vital information. Because threats and opportunities are weighted, going above 20 factors would dilute the importance of key factors.
Why is inclusion of about 20 factors recommended in the EFE Matrix, rather than about 10 factors or about 40 factors?
Yes. Arranging factors according to importance would help the firm organize, evaluate and utilize external factors in the strategic planning process. It is not essential that the EFEM be structured in this manner, but it definitely would be helpful for an analyst.
In developing an EFE Matrix, would it be advantageous to arrange your opportunities according to the highest weight, and do likewise for your threats? Explain.
The template requires 10 and 10. There is nothing magical about the split, it is based on the items and impacts respectively
In developing an EFE Matrix, would it be best to have 10 opportunities and 10 threats, or would 17 opportunities (or threats) be fine with 3 of the other to achieve a total of 20 factors as desired?
Yes. the CPM or competitive profile matrix identifies a firm's major competitors and its particular strengths and weaknesses in relation to a sample firm's strategic position
Could or should critical success factors in a CPM include external factors? Explain.
This is a TRUE statement that reveals how complex the external audit part of strategy formulation can be. There are an infinite number of interactions among key external factors.
Discuss the following statement: Major opportunities and threats usually result from an interaction among key environmental trends rather than from a single external event or factor.
Companies cannot do everything they want to, so they have to narrow it down to 20
-List all 62 factors, pass copies around to everyone in the meeting, use checkpoints, and ask them to chose their top 20, analyze responses given to prioritize
Let's say your boss develops an EFE Matrix that includes 62 factors. How would you suggest reducing the number of factors to 20?
-weights based on the industry from 0.0 to 1.0. The weight indicates the relative importance of that factor to being successful in the firm's industry
-ratings is based on the company from 1 to 4 to each key external factor to indicate how effectively the firm's current strategies respond to the factor
Define, compare, and contrast the weights versus ratings in an EFE Matrix.
CPM factors can be both strengths and weaknesses or opportunities and threats, whereas in an EFE Matrix, only external factors are included. Is it particularly important in an EFE Matrix to include specific, actionable factors because all factors related to a particular firm, rather than including some general factors as is done in developing a CPM.
What is the different between factors listed in an EFE Matrix vs. critical success factors listed in a CPM? In which matrix is it particularly important to include specific, actionable factors? Why?
economic, social, cultural, demographic, natural environment, political, government, legal, technological, and competitive.
List 10 external areas that give rise to opportunities and threats.
Annual Reports are vague in many areas to conceal the specific foundational numbers leading to particular strategies. Vagueness is useless in strategic planning. Almost everyone knows the generalities. Substantial research is needed to uncover the details. To much is at stake to spend millions of dollars on vague generalities.
Why do Annual Reports often state external risk information in really vague terms; why should strategists avoid including such vagueness in developing and EFE Matrix?
Should involve as many managers and employees as possible.
-A company must first gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends.
-Individuals should be asked to monitor various sources of information (key magazines, journals, and newspapers.)
-Once the information is gathered, it should be assimilated and evaluated.
-A meeting or series of meetings is needed to collectively identify the most important opportunities and threats facing the firm. -Factors should be ranked and prioritized.
-A final list of the most important key external factors should be communicated and distributed in the organization. Strategies will be derived from matching these key external factors with key internal factors.
Describe the "process of performing an external audit" in an organization doing strategic planning for the first time.
The difference is .08-.06=.02
-which makes it 33.3% more important
In an IFE matrix, a critic may say there is no significant difference between a "weight" of .08 and .06. How would you respond? What is the mathematical difference
They want to keep the shareholders happy (getting their check)
Why do many firms consistently pay out dividends?
In the IFE, weights apply to the company, in the EFE, weights apply to the industry. Weaknesses and threats both have to add up to 1.0
Define, compare, and contrast weights versus ratings in an EFE Matrix versus an IFE Matrix
No, they have to do what is best for the shareholder. Right now, a business can borrow money for 2%
If a firm has zero debt in its capital structure, is that always an organizational strength? Why or why not?
List all 100 factors on paper, pass them to the employees and have them pick, count what everyone selected. To allow companies to focus on key goals they need to fix
After conducting an internal audit, a firm discovers a total of 100 strengths and 100 weaknesses. What procedures then could be used to determine the most important of these? Why is it important to reduce the total number of key factors?
-backward- gaining control of suppliers (McDonald's buying a cattle farm)
-forward-gaining control of distributors (IBM having a chain store)
horizontal-acquire rival firms (big bank (Suntrust) gaining control of a smaller bank (BB&T)
Give hypothetical examples of forward integration, backward integration, and horizontal integration
Industry average, overtime, rivals; rivals because a company always has to be thinking about their competitors
List three ways that financial ratios should be compared or used. Which of the three comparisons do you feel is most important? Why?
Yes, stock prices drop if you cut dividends
Would you ever pay out dividends when your firm's annual net profit is negative? Why it why not? What effect could this have on a firm's strategies?
Strategies are the SWOT and they can actually be made, recommendations are the strategies that are actually going to be implemented and involve money
Explain the difference between strategies and recommendations
To hire 100 new salespersons you would multiply 100 by the annual pay of $75,000 which would result in $7.5M
-the cost would be higher or lower depending on the average salary plus commission and amenities
Explain how to estimate cost associated with recommendations
Half are going to make it as recommendations , which involve money (vagueness is disastrous)
Why is it essential for a SWOT strategy to be stated specifically enough to estimate the cost (or savings)
If you do not, it will go viral and no one will do business with you
Why is it important to treat all animals, even cattle, pigs, and chickens, with care and respect
A Wall Street Journal article said Apple's smartphone market share in China is 6.0%, behind the two leaders Samsung (17.8%) and Lenovo (11.4%). With regard to a BCG Matrix, what are the three firms' relative market share position?
1. It is a snap shot in time
2. There are more than 4 dimensions that firms could/should be rated on
3. The directional vector could fall directly on an axis, or could even go nowhere if the core finagle is (0,0). (Whenever this happens, analysis usually add a few more evaluative criteria that comprise the FP axis to make the vector shift into a particular quadrant- accounts receivable)
4. Implications of the exact angle of the vector within a quadrant are unclear
5. The relative attractiveness of alternative strategies generated is unclear
List five limitations of a SPACE matrix
(They don't have to share information)
-as a company, you give away your competitive information
-performance failures can be hidden
-rivalry among segments can be reduced
-transparency is good, it creates a culture that is trusting
-Investors will better understand the firm
-managers and employees will better understand the firm
-disclosure enhances the communication process both within the firm and with outsiders
List the pros and cons of a firm disclosing by-segment corporate information in a form 10-k
-BCG only has 2 axis, can be right in the middle
-BCG is 4 cell, IE is 9 cell
What are some key differences between the BCG and the IE portfolio matrix
Using a scale of 1-10 for AS scores. You do not ant duplicate ratings
In developing a QSPM, if 10 strategies are being compared simultaneously, what would be a good scale for the AS scores? Why?
T- number of stores, BK- number of restaurants, BOA- number of branches/locations, SA- number or hubs in NA VS SA
size of the circle is what you are measuring
In developing a BCG Matrix or an IR matrix, what would be a good surrogate for revenues for Target, Burger King, Bank of America, and Spirit Airlines
In developing a SPACE Matrix, what would you expect the SO average to be for Apple, Heinz, Verizon, Amazon, and Kroger, diagram and explain
-survey with ranks to figure out what is most important
-write down all of the strategies, give the list to the board/decision makers, have them pick, count their answers
Rather than developing a QSPM, what is an alternative procedure for prioritizing the relative attractiveness of alternative strategies
The human tendency to put too much weight on a single factor
-It takes away from the main purpose. For example, guns during election. Everyone is worried about keeping their guns or getting guns banned that no one is paying attention to the other factors that the President is for/against like climate control, gas prices, etc.
Define halo error. How can it inhibit selecting the best strategies to pursue
List 6 drawbacks of using only subjective information in formulating strategies
FMU- Strength-AACSB accredited SOB
Opportunity-unemployment has increased by 8%
SO-Advertising to increase education at FMU
For a firm that you know well, give an example of SO strategy showing how an internal strength can be matched with an external opportunity to formulate a strategy
FMU- Weakness-no names on doors
Threat- state funding dropping 15% annually
WT-Auction off buildings
For a firm that you know well, give an example of SO strategy showing how an internal weakness can be matched with an external threat to formulate a strategy
-Does not reveal how to achieve a competitive advantage
-is a snapshot in time
-no numbers, weights, or ratings (no quantitative information)
List three limitations of the SWOT Matrix and analysis
For the following three firms using the given factors, calculate a reasonable stability position (SP) coordinate to go on their space matrix access, given what you know about the nature of those industries
Yes, it starts to make a difference. If the vector swings more toward the vertical line you would start thinking conservative instead of aggressive. Depending on which quadrants it falls near, you would have to change the plan
Would the angle or degrees of the vector in a space matrix be important in generating alternative strategies? Diagram and explain
On the competitive position (CP) axis of a space matrix, what level of capacity utilization would be necessary for you to give the firm a negative one? -7? Why diagram and explain
Down in the lower half (defensive and competitive)
If a firm has a weak financial position and competes in an unstable industry, in which quadrant will the space that dirt why? Diagram and explain
-You can get (0,0) if the numbers cross out each other
-Add more variables (accounts receivable)
Describe a situation where the space analysis would have no vector. In other words, describe a situation where the space analysis coordinate would be (0,0). What should an analyst do in this situation
FMU # of students/coastal # of students
Develop a BCG matrix for your university. Because your college does not generate profits, what would be a good surrogate for the pie slice values? How many circles do you have and how large are they? Explain
-the question mark quadrant is a little fish in a big industry. Have a low relative market share positions,, yet compete in a high growth industry
-the cash cow is a big fish in a bad industry. Have a high relative market share position but compete in a low growth industry
-with more weight being put on the external market, you would be better off in the question mark quadrant
In a BCG matrix, would the ? quadrant or the cash cow quadrant be more desirable diagram and explain
Absolutely, wherever segments are located is important information. You would still know the position and the size of the circle
With the BCG Matrix and Analysis be worth performing if you do not know the profits of each segment? Why
The axis issue (it is less likely to fall on the axis)
What major limitations of the BCG Matrix does i.e. Matrix overcome? Diagram and explain
-debatable, quadrant 2 has good internal and quadrant 4 has good IFE
-But, in my opinion it is easier to improve a company's internal issues to get to quadrant 1, because there is no control over the EFE (the industry). Therefore, I would say it is better to be in Quadrant 2.
In an IE Matrix, do you believe it is more advantages for a division to be located in quadrant II or IV? Why? Draw and explain
Develop 2•2•2•2•2 QSPM. for an organization of your choice (i.e., 2 strengths, 2 weaknesses, 2 opportunities, 2 threats, and 2 strategies). Follow all the QSP and guidelines presented in the chapter
-The small organization would be more informal, large business would be more formal
-strategy formulation- the process by which an organization chooses the most appropriate courses of action to achieve it defined goals
How would application of the strategy-formulation analytical framework differ from small to large organization
What types of strategies would you recommend for an organization that achieves total waited scores of 3.6 on the IFE Matrix and 1.2 on the EFE matrix? Diagram and explain
Given the following info, develop a SPACE matrix for the XYZ corporation:
Diagram and explain
Given the info in the following table, develop a BCG matrix and an IE matrix
-Segments (size of circles) would be school of business, school of education, health sciences, etc.
-could use the number of students/the state leader or FMU SOB/Clemson SOB
How would you develop a portfolio matrix for your SOB?
Nonprofit does not pay taxes and does not use equity as a source of capital
How would a nonprofit organization differ in their applications of the strategy-formulation analytical framework?
Develop a SPACE matrix for a company that is weak financially and is a weak competitor. The industry for this company is pretty stable, but the industry projected growth in revenues and profits is not good. Label all axes and quadrants
-snapshot in time
-only 4 quadrants
-only two axis/two variables
-could fall right in the center and is not clear what to do from there
List 4 limitations of a BCG matrix. Diagram and explain
Make up an example to show clearly and completely that you can develop an IE Matrix or three division company, where each division has $10, $20, and $40 in revenues and $2, $4, and $1 in profits. State other assumptions needed. Label axis and quadrants
-add more variables to the financial position (accounts receivable) and adjust the rating accordingly to make it shift one way or the other
What procedure could be necessary if the space vector files right on the axis between the competitive and defensive quadrants? Diagram and explain
5% or more would be rapid
In a BCG Matrix or the gray and strategy matrix, what would you consider to be a rapid market or industry growth rate
If you fill in the column first, you were not able to compare strategy 1 to strategy 2 effectively (in terms of the most attractive options)
Why is it important to work row by row instead of column by column and preparing a QSPM
so you are able to determine which strategy is better (given the factor on the left)
-work row by row, no column by column
Why should one avoid putting double 4s in a row in preparing a QSPM
yes, it can still rate the strategies (row by row) to the most attractive
-you lose the robustness of the analysis when your take away he weight column, you assume all the listed factors are of equal value within the industry
Envision a QSPM with no wait column. Would that still be a useful analysis? Why or why not? What do you lose by deleting the weight column
Prepare a BCG matrix for a two division firm with sales of $5 and $8 versus profits of $3 and $1, respectively. State assumptions for the RMSP and I GR access to enable you to construct the diagram
If a firm has the leading market share in it's industry, where on the BCG Matrix with the circle why? Diagram and explain
If a firm competes in an unstable industry, such as telecommunications, where on the SP axis of the space matrix would you plot the appropriate point? Diagram and explain
-has no weights or ratings (quantitative data)
-can go Ito discussion format
Why do you think the SWOT matrix is the most widely used of our strategy matrices
1. Always requires inferred judgments
2. Factories and strategy choices are based on underlying input and matching matrices/analysis
What are two limitations of the QSPM discussed in the chapter
The number of people in millions that visited various finance-focused information websites in September 2017 are as follows: Yahoo! Finance (59.7), business insider (53.4), CNBC (49.2), Forbes digital (48.6), Bloomberg (36.6), CNN Money (36.2), Dow Jones (34.7), routers sites (24.7), and fortune.com size (19.2). What would the RNSP values be for the nine firms if you were going to develop a PCG Matrix
AT&T and Time Warner or perhaps merging. The following data table gives the nine month 2017 revenue and operating income by segment for both AT&T and it's rival Time Warner. This type of information for firms can enable construction of circles (based on revenues) and pie slices (based on profits) in portfolio mattrices. Develop a PCG matrix based on the information given
1. Make a List of the firms key external opportunities and threats and internal strengths and weaknesses in the left column of the QSPM
2. Assigned weights to each key external and internal factor
3. Examine the stage two matching mattrices and identify alternative strategies that the organization should consider implementing
4. Determine the attractiveness scores (AS)
5. Compute the turtle attractiveness scores
6. Compared to some title attractiveness score
Explain the steps involved in developing a QSPM
All are matching (external to internal to find strategies), all are snapshots in time
Different axis, some use weights and ratings
How are the swap matrix, space matrix, BCG matrix, IE Matrix, and Grant strategy Matrix similar? How are they different?
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