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Strategy Analysis and Choice



What's Ahead

The Nature of Strategy Analysis and Choice

The Process of Generating and Selecting Strategies

A Comprehensive Strategy-Formulation Framework

The Input Stage

The Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix

The Strategic Position and Action Evaluation (SPACE) Matrix

The Boston Consulting Group (BCG) Matrix

The Internal-External (IE) Matrix

The Grand Strategy Matrix

The Decision Stage

The Quantitative Strategic Planning Matrix (QSPM)

Positive Features and Limitations of the QSPM

Cultural Aspects of Strategy Choice

The Role of a Board of Directors

Chapter Wrap-Up

What's Ahead
Strategic analysis and choice largely involves making subjective decisions based on objective information. This chapter introduces important concepts that can help strategists generate feasible alternatives, evaluate those alternatives, and choose a specific course of action. Behavioral aspects of strategy formulation are described, including politics, culture, ethics, and social responsibility considerations. Modern tools for formulating strategies are described, and the appropriate role of a board of directors is discussed.

Objectives
After studying this chapter, you should be able to do the following:
1. Describe a three-stage framework for choosing among alternative strategies.
2. Explain how to develop a TOWS Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and QSPM.
3. Identify important behavioral, political, ethical, and social responsibility considerations in strategy analysis and choice.
4. Discuss the role of intuition in strategic analysis and choice.
5. Discuss the role of organizational culture in strategic analysis and choice.
6. Discuss the role of a board of directors in choosing among alternative strategies.

Nature of Strategy Analysis and Choice
As indicated by Figure 6-1, this chapter focuses on establishing long-term objectives, generating...