How many techniques are included in the strategy formulation analytical framework?

Learning Objectives
After understanding this topic you able to understand the basic phenomena of strategy formulation frame
work and also under stand the stages of strategy formulation frame work

Objectives:

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Strategic Management
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What are the 4 types of strategies and strategic analysis?
What are the four 4 phases of strategic framework?
What are the 3 stages in the strategy formulation framework?
What are the 5 stages of strama?

Objective placing an important role in strategic management Strategic analysis and choice largely involves
making subjective decisions based on objective information. This topic includes 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

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)

Stage 1

of 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. Stage 2, called the Matching Stage, focuses upon generating feasible alternative strategies by
aligning key external and internal factors. Stage 2 techniques include 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, and the Grand Strategy Matrix.

Stage 3,

called the Decision Stage, and involves a single technique, the Quantitative Strategic Planning Matrix
(QSPM). A QSPM uses input information from Stage 1 to objectively evaluate feasible alternative strategies
identified in Stage 2. A QSPM reveals the relative attractiveness of alternative strategies and, thus, provides
an objective basis for selecting specific strategies.
All nine techniques included in the strategy-formulation framework require integration of intuition and analysis. Autonomous divisions in an organization commonly use strategy-formulation techniques to develop
strategies and objectives. Divisional analyses provide a basis for identifying, evaluating, and selecting among
alternative corporate-level strategies.
Strategists themselves, not analytic tools, are always responsible and accountable for strategic decisions.
Lenz emphasized that the shift from a words-oriented to a numbers-oriented planning process can give rise
to a false sense of certainty; it can reduce dialogue, discussion, and argument as a means to explore
understandings, test assumptions and foster organizational learning. Strategists, therefore, must be wary of
this possibility and use analytical tools to facilitate, rather than diminish, communication. Without objective
information and analysis, personal biases, politics, emotions, personalities, and halo error (the tendency to put
too much weight on a single factor) unfortunately may play a dominant role in the strategy-formulation
process.

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Key Terms: strategic management 8th strategic management advisors strategic management alexandria strategic management analysis strategic management article strategic management articles strategic management associates strategic management association

what do you do better or have more merit than your rivals do? In case of weaknesses, ask whichareas of your business you can develop and at least catch up with your competitors?Competitive Profile Matrix (CPM)is an important method for strategic analysis. CPM helpscompany owners, shareholders and other stakeholders to see the strengths and weaknesses of allmajor industry rivals on a single page. CPM not only lets you put all these on a single tab, but alsodistils a large amount of data into a single number ranking. Before you can generate a CPM, you needto define the qualities that matter to the industry. For example, if you run a store, you can have fourmain attributes: location, product range, price and customer service. Next, you need to allocate aweight for each attribute.

What are the 4 types of strategies and strategic analysis?

The strategies at each level of the organization are known by the name of the level. Corporate level strategy. Business level strategy. Functional level strategy.

What are the four 4 phases of strategic framework?

The four phases of strategic management are formulation, implementation, evaluation and modification.

What are the 3 stages in the strategy formulation framework?

Techniques of strategy formulation can be integrated into a decision making framework. Strategies can be identified, evaluated and selected by this framework that includes three stages: (1) input stage, (2) matching stage, and (3) decision stage (Figure 1) (David, 2007).

What are the 5 stages of strama?

Clarify your vision. Setting well-defined goals should clarify your vision for your organization. ... .

Collect and analyze information. This stage is important because the information you gain can have an impact on the next two steps. ... .

Devise a strategy. ... .

Execute your strategy. ... .

Evaluate and control..

How many techniques are included in the strategy formulation analytical framework?

<Previous Lesson

Strategic Management

Next Lesson>

What are the 4 types of strategies and strategic analysis?

What are the four 4 phases of strategic framework?

What are the 3 stages in the strategy formulation framework?

What are the 5 stages of strama?

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