MGT603 Final Term Subjective and Objective Lectures 23-45

MGT603 Subjective objective · Lecture 23 to 45 · Shared by SHAZIA BHATTI

Q1. Question Formulation framework is considered to be the input stage of comprehensive strategy formulation framework u r required identifying strategy formulation tool in this stage?

Stage-1 (Formulation Framework) · 1. External factor evaluation · 2. Competitive matrix profile · 3. Internal factor evaluation

Stage 1of the formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix. Called the Input Stage, Stage 1 summarizes the basic input information needed to formulate strategies.

Q2. Question Describe three stages of strategy formulation?

A Comprehensive Strategy-Formulation Framework

Important strategy-formulation techniques can be integrated into a three-stage decision-making framework, as shown below. The tools presented in this framework are applicable to all sizes and types of organizations and can help strategists identify, evaluate, and select strategies.

Stage-1 (Formulation Framework) · 1. External factor evaluation · 2. Competitive matrix profile · 3. Internal factor evaluation · Stage-2 (Matching stage) · 1. TWOS Matrix (Threats-Opportunities-Weaknesses-Strengths) · 2. SPACE Matrix (Strategic Position and Action Evaluation) · 3. BCG Matrix (Boston Consulting Group) · 4. IE Matrix (Internal and external) · 5. GS Matrix (Grand Strategy) · Stage-3 (Decision stage) · 1. QSPM (Quantitative Strategic Planning Matrix)

3. What are opportunities and threats? Explain briefly with the help of two examples of each Strengths are attributes of the organization that are helpful to the achievement of the objective.

Opportunities are external conditions that are helpful to the achievement of the objective. Threats are external conditions that are harmful to the achievement of the objective. Opportunities and threats are external factors. For example, an opportunity could be a developing distribution channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a company's products. A threat could be a new competitor in an important existing market or a technological change that makes existing products potentially obsolete. It is worth pointing out that SWOT analysis can be very subjective - two people rarely come-up with the same version of a SWOT analysis even when given the same information about the same business and its environment. Accordingly, SWOT analysis is best used as a guide and not a prescription. Adding and weighting criteria to each factor increases the validity of the analysis.

4. Question list down steps involved in constructing a TOWS Matrix:

There are eight steps involved in constructing a TOWS Matrix:

1. Rank external opportunities · 2. Rank external threats · 3. Rank internal strength

4. Rank internal weaknesses.
5. Match internal strengths with external opportunities and mention the result in the SO Strategies cell.
6. Match internal weaknesses with external opportunities and mention the result in the WO Strategies cell..
7. Match internal strengths with external threats and mention the result in the ST Strategies cell.
8. Match internal weaknesses with external threats and mention the result in the WT strategies cell.

MCQ’s

Q1. Which stage of the “Strategy Formulation Framework” includes an External Factor Evaluation Matrix and a Competitive Profile Matrix?

1. Matching
2. Decision
3. Input page 97
4. All of the given options

Formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix Called the Input Stage.

Q2. Input stage of strategy formulation framework includes developing which of the following set of matrices?

1. IFE, EFE and QSPM matrix
2. IFE, IE and BCG matrix
3. IFE, CPM and EFE matrix page 97
4. EFE, IE and CPM matrix

Input Stage: Stage 1 of the formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix.

Q3. Matching stage of strategy formulation framework comprises of formulation of which of the following set of matrices?

1. BCG, SPACE, QSPM matrix
2. BCG, SPACE, TWOS Matrix PAGE 97
3. SPACE, TWOS and IFE matrix
4. BCG, SPACE, EFE Matrix

Q4. Which of the following stages of Strategy Formulation Framework involves development of Internal-Factor Evaluation Matrix?

1. Input stage page 97
2. Output stage
3. Matching stage
4. Decision stage

Q5. Which of the following stages of strategy formulation framework involves development of Internal External Matrix?

1. Input stage
2. Output stage
3. Matching stage pg97
4. Decision stage

Matching stage

TWOS Matrix (Threats-Opportunities-Weaknesses-Strengths) 2. SPACE Matrix (Strategic Position and Action Evaluation) 3. BCG Matrix (Boston Consulting Group)4. IE Matrix (Internal and external) 5. GS Matrix (Grand Strategy)

Lecture #25

1. Strategic position and the action evaluation of space matrix

The Strategic Position and Action Evaluation (SPACE) Matrix is another important Stage 2 matching tool of formulation framework. It explains that what is our strategic position and what possible action can be taken. It is not closed matrix. It is prepared on graph. This follow counter clock wise direction. It contains fourquadrant named aggressive, conservative, defensive, or competitive strategies. The axes of the SPACE Matrix represent two internal dimensions financial strength [FS] and competitive advantage [CA]) and two external dimensions (environmental stability [ES] and industry strength [IS]). These four factors are the most important determinants of an organization's overall strategic position.

2. Name and explain dimensions of space matrix

It is divided into two internal and external dimensions which are as follow (Internal dimensions) financial strength, competitive advantage, (External dimensions) environment stability and industry strength. This sequence is convention to be followed as graphed above. This frame work determines appropriate set of