Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Apple has aggressive new plans to design its own computer chips in order to (1) obtain better chips for its unique products, and (2) share fewer details about its technology with external chip manufacturers.

The Nature of Strategy Analysis and Choice

The Quantitative Strategic Planning Matrix

designed to determine the relative attractiveness of feasible alternative actions.

The QSPM is a tool that allows strategists to evaluate alternative strategies objectively, based on previously identified external and internal critical success factors.

Strategy Analysis and Choice

MGT. 18

PREPARED BY:

Jose Maria Hospital

"I shall be telling this with a sigh

Somewhere ages and ages hence:

Two roads diverged in a wood,

and I—I took the one

less traveled by,

And that has made

all the .”

THE ROAD NOT TAKEN

Robert Frost

difference

I could not travel both

Robert Frost

Two roads diverged in a yellow wood,

And sorry ,

And be one traveler, long I stood

And looked down one as far as I could

To where it bent in the undergrowth;

Simply iMazing

STEP 3

STEP 5

STEP 1

Examine the Stage 2 (matching) matrices, and identify alternative strategies that the organization should consider implementing.

Compute the Total Attractiveness Scores. Total Attractiveness Scores (TAS) are defined as the product of multiplying the weights (Step 2) by the Attractiveness Scores (Step 4) in each row.

Make a list of the firm’s key external opportunities and threats and internal strengths and weaknesses in the left column of the QSPM.

Steve Paul Jobs

February 24, 1955

6

5

4

3

2

1

Designed video games, then used his work savings to fly to India to do some soul searching.

STEP 6

STEP 4

STEP 2

Compute the Sum Total Attractiveness Score.

Determine the Attractiveness Scores (AS) defined as numerical values that indicate the relative attractiveness of each strategy in a given set of alternatives. It answers the question

Assign weights to each key external and internal factor.

“Does this factor affect the choice of strategies being made?”

Get to know the man who changed the world as a pioneer inventor, businessman and designer

1976

1977

Co-founded APPLE COMPUTER with his friend Steve Wozniak and sold their first computer, the Apple I.

Released Apple II, the first commercially available computer that has

Choice

computer graphics

This chapter focuses on generating and evaluating alternative strategies.

Alternative strategies

come out of the blue.

DO NOT

1985

1993

The Process of Generating and Selecting Strategies

Resigned from Apple Inc. and started his own company

selecting

(n) consists of the mental process of judging the merits of multiple options and

one or more of them.

Strategist never consider all the feasible alternatives that could benefit the firm

NeXT Computer, Inc.

Purchased Lucasfilm's Graphics for $10 million and renamed it to

Pixar Animated Studios

A manageable set of the most attractive alternative strategies must be developed.

Identifying and evaluating alternative strategies should involve many of the managers and employees who earlier assembled the organizational vision and mission statements, performed the external audit, and conducted the internal audit.

1 = should not be implemented,

2 = possibly should be implemented

3 = probably should be implemented

4 = definitely should be implemented.

INPUT STAGE

Quadrant I

Strategy analysis and choice largely involve making subjective decisions based on objective information.

continued concentration on current markets (market penetration and market development) and products (product development) is an appropriate strategy.

Making small decisions in the input matrices regarding the relative importance of external and internal factors allows strategists to more effectively generate and evaluate alternative strategies.

The Grand Strategy Matrix

Quadrant IV

Quadrant II

have characteristically high cash-flow levels and limited internal growth needs and often can pursue related or unrelated diversification successfully.

need to evaluate their present approach to the marketplace seriously. Although their industry is growing, they are unable to compete effectively, and they need to determine why the firm’s current approach is ineffective and how the company can best change to improve its competitiveness.

the Grand Strategy Matrix is based on two evaluative dimensions: competitive position and market (industry) growth.

Quadrant III

APPLE

compete in slow-growth industries and have weak competitive positions. These firms must make some drastic changes quickly to avoid further decline and possible liquidation.

Doing Great in a Weak Economy:

HOW?

Strategy Analysis

and Choice

Prepared by: Jose Maria Hospital

Learn more about creating dynamic, engaging presentations with Prezi