1. CHAPTER 6 Strategy Formulation: Situation Analysis & Business Strategy
STRATEGIC MANAGEMENT & BUSINESS POLICY 10TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
Prentice Hall, Inc. © 2006
Prentice Hall 2006

2. Strategy formulation --
Situational Analysis
Strategy formulation --
Strategic planning or long-range planning
Develops mission, objectives, strategies, policies
Prentice Hall, Inc. © 2006
Prentice Hall 2006

3. Situational Analysis
--process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses
Prentice Hall, Inc. © 2006
Prentice Hall 2006

4. IFAS – Maytag as Example
Prentice Hall, Inc. © 2006
Prentice Hall 2006

5. EFAS – Maytag as Example
Prentice Hall, Inc. © 2006
Prentice Hall 2006

6. SFAS Matrix
Prentice Hall, Inc. © 2006
Prentice Hall 2006

7. Niche -- Need in the marketplace that is currently unsatisfied
Situational Analysis
Niche --
Need in the marketplace that is currently unsatisfied
Prentice Hall, Inc. © 2006
Prentice Hall 2006

8. Corporate Goal -- Find propitious niche Strategic window
Situational Analysis
Corporate Goal --
Find propitious niche
Strategic window
Prentice Hall, Inc. © 2006
Prentice Hall 2006

9. SWOT -- Internal External Strengths/Weaknesses Opportunities/Threats
Situational Analysis
SWOT --
Internal
Strengths/Weaknesses
External
Opportunities/Threats
Prentice Hall, Inc. © 2006
Prentice Hall 2006

10. TOWS Matrix
Prentice Hall, Inc. © 2006
Prentice Hall 2006

11. Business Strategy
Focuses on improving competitive position of company’s products or services within the specific industry or market segment
Prentice Hall, Inc. © 2006
Prentice Hall 2006

12. Competitive Strategy --
Porter’s Competitive Strategies
Competitive Strategy --
Low cost
Differentiation
Direct competition
Focus on niche
Prentice Hall, Inc. © 2006
Prentice Hall 2006