1. Explain why the strategic management
Why is strategy implementation often
class is often called a “capstone course”
The term strategic management is used at
class as the title for the capstone course in
business administration. This course
integrates material from all business
courses, and, in addition, introduces new
strategic-management concepts and
techniques being widely used by firms in
strategic planning.
2. What aspect of strategy formulation do you
think requires the most time?
The aspect of strategy formulation that
appears to require the most time is
generating alternative strategies. David &
David (2015) explains that strategy
formulation involves developing several
strategies, whether it be for expansion,
abandonment, joint ventures, and
operations alike. Since the market is difficult
to determine in the long-haul it is important
for a company to spend time to prepare
themselves for the ever changing economy.
Accomplishing company objectives can’t
happen one specific way forever otherwise
they wouldn’t survive; determining different
strategies is not an initial cost, but an
ongoing cost of all resources that should
happen any time external and internal
circumstances change or shift. Strategies
determine how a company will achieve their
objectives and uphold their vision and
mission, thus without taking the time to
develop
3.
considered the most difficult stage in the
strategy management process?
Because the implementation process is
often poorly defined. A poorly defined
implementation process causes confusions
and uncertainly and makes it difficult, and
often impossible, to successfully implement
the strategy.
4. Why is it so important to integrate intuition
and analysis in strategic management?
Managers with good intuition will make
correct predictions of how available
information reflects reality and determine
the most likely outcomes in the future.
Strategic management inherently makes risk
decisions and both intuition and analysis
will support the decision maker in choosing
the best course of action.
5. Explain the importance of a vision and a
mission statement
A Vision Statement and a Mission Statement
are extremely important to any corporation.
Mission statements are more for current
employees and managers, this helps them to
make decisions in alignment with the
companies goals. Vision statements could be
seen as an extensionof a mission statement.
The vision statement will include things such
as the values of company. These values will
be utilized and referenced every day during
the interactions of a company.
6. Discuss relationships among objectives, organization to be used to sustain your
strategies, and policies mission. The biggest difference between
Objectives are essential for o rganizational nonfrofits and for profits is how you use
success because they provide direction; aid the money that you raise.
in evaluation; create synergy; reveal 8. Write a vision and mission statement for an
priorities; focus coordination; and provide a organization of your choice
basis for effective planning, organizing, 9. Conduct a search on the internet with
motivating, and controlling activities. keywords vision statement and mission
Strategies are the means by which long-term statement
objectives will be achieved. Business 10.Explain how to conduct an external
strategies may include geographic strategic-management audit
expansion, diversification, acquisition, 11.Identify a recent economic, social/political,
product development, market penetration, or technological trend that significantly
retrenchment, divestiture, liquidation, and affects the local Pizza Hut
joint ventures. Annual objectives are short- 12.Use Porter’s Five-Forces Model to evaluate
term milestones that organizations must competitiveness within the U.S banking
achieve to reach longterm objectives. Like industry
long-term objectives, annual objectives Potential development
Of substitute products
should be measurable, quantitative,
challenging, realistic, consistent, and
Bargaining Rivalry among Bargaining
prioritized. They must also be established at
Power competing firm power of
the corporate, divisional, and functional Of suppliers consumers
levels in a large organization. Policies are the
Potential entry
means by which annual objectives will be Of new competitors
achieved. Policies include g uidelines, rules,
and procedures established to support 13.What major forecasting technique would
efforts to achieve stated objectives. Policies you use to identify (1) economic
are guides to decision making and address opportunities and threats and (2)
repetitive or recurring situations. demographic opportunities and threats?
7. How would the mission statement of a for Why are these techniques most
profit and a nonprofit organization differ? appropriate?
The main purpose of your nonprofit is to 14.How does the external audit affect other
raise money to serve those in need and components of the strategic-management
advance your causes. Your profits stay in the process?
15.Construct an EFE Matric for an organization 20.Give recent example of joint venture,
of your choice retrenchment, divestiture, and liquidation
16.How does strategy formulation differ for a Joint Venture : IBM recently signed
small versus a large organization? How partnerships with both Twitter and
does it differ for a for profit versus a Facebook.
nonprofit organization? Retrenchment : Staples closed 250 stores
17.Give recent example of market penetration, and reduced by 50% the size of other stores.
market development, and product Diversiture : Sears Holdings divested its
development Land’s End division to Sears’ shareholders.
Market Penetration : Under Armour signed Liquidation : The Trump Taj Mahal in
tennis champion Andy Murray to a 4-year, Atlantic City, New Jersey, faces liquidation.
$23 million marketing deal. 21.Do you think hostile takeovers are
Market Development : Gap opened its first unethcial? Why or why not?
five stores in China. 22.What are the major advantage and
Product Development : Amazon just began disadvantages of diversification?
offering its own line of baby diapers and Advantages :
wipes. (1) As the economy changes, the spending
18. Give recent example of forward patterns of the people change.
integration, backward integration, and Diversification into a number of industries or
horizontal integration product line can help create a balance for
Forward Integration : Amazon began rapid the entity during these ups and downs.
delivery services in some U.S. cities. (2) There will always be unpleasant surprises
Backward Integration : Starbucks purchased within a single investment. Being diversified
a coffee farm. can help in balancing such surprises.
Horizontal Integration : BB&T acquired (3) Diversification helps to maximize the use
Susquehanna Bancshares. of potentially underutilized resources.
19.Give recent example of related an (4) Certain industries may fall down for a
unrelated diversification specific time frame owing to economic
Related Diversification : Facebook acquired factors. Diversification provides movement
the text-messaging firm WhatsApp for $19 away from activities which may be declining.
billion. Disadvantages :
Unrelated Diversification : Kroger and (1) Entities entirely involved in profit-making
Whole Foods Market are cooking meals, segments will enjoy profit maximization.
becoming restaurants. However, a diversified entity will lose out
 due to having limited investment in the
specific segment. Therefore, diversification
limits the growth opportunities for an entity.
(2) Diversifying into a new market segment
will demand new skill sets. Lack of expertise
in the new field can prove to be a setback
for the entity.
(3) A mismanaged diversification
excessive ambition can lead to a company
over expanding into too many
directions at the same time. In such a case,
all old and new sectors of the entity will
suffer due to insufficient resources and lack
of attention.
(4) A widely diversified company will not be
able to respond quickly to market changes.
The focus on the operations will be limited,
thereby limiting the innovation within the
entity.
23.What are the major advantage and
disadvantages of an integrative strategy?
24. Explain the steps involved in developing a
QSPM
a.Make a list of the firm’s key external
opportunities/threats
internalstrengths/weaknesses in the left
column of the QSPM.
b.Assign weights to each key external and
internal factor.
c.Examine the Stage 2 matrices and identify
alternative strategies that theorganization
should consider implementing.
d.Determine the Attractiveness Scores (AS).
e.Compute the total AS.f.Compute the sum
Total AS
25.How would you develop a set of objectives
for your school or business?
26.What do you think is the appropriate role
of a board of directors in strategic
management? Why?
or 27.Discuss the limitations of various strategy-
formulation analytical technique
new 28.Explain why cultural factors should be an
important consideration in analyzing and
choosing among alternative strategies
29.How are the SWOT Matrix, SPACE Matrix,
BCG Matrix, IE Matrix, and Grand Strategy
Matrix similar? How are they different?
SWOT Matrix : The Strengths-Weaknesses-
Opportunities-Threats (SWOT) Matrix is an
important matching tool that helps
managers develop four types of strategies:
SO (strengths-opportunities) strategies, WO
(weaknesses-opportunities) strategies, ST
(strengths-threats) strategies, and WT
(weaknessesthreats) strategies.3 Matching
key external and internal factors is the most
and difficult part of developing a SWOT Matrix,
as it requires good judgment—and there is
no one best set of matches.
SPACE Matrix : The Strategic Position and
Action Evaluation (SPACE) Matrix, another
important Stage 2 matching tool, Its four-
quadrant framework indicates whether
aggressive, conservative, defensive, or
competitive strategies are most appropriate
for a given organization. The axes of the
SPACE Matrix represent two internal position on the x-axis and (2) market
dimensions (financial position [FP] and (industry) growth on the y-axis. Any industry
competitive position [CP]) and two external whose annual growth in sales exceeds 5
dimensions (stability position [SP] and percent could be considered to have rapid
industry position [IP]). These four factors are growth. Appropriate strategies for an
perhaps the most important determinants of organization to consider are listed in
an organization’s overall strategic position. sequential order of attractiveness in each
BCG Matrix : The Boston Consulting Group quadrant of the Grand Strategy Matrix.
(BCG) Matrix and the Internal-External (IE)
Matrix are designed specifically to enhance a
multidivisional firm’s efforts to formulate
strategies. Allocating resources across
divisions is arguably the most important
strategic decision facing multidivisional
firms.
IE Matrix : The IE Matrix is similar to the BCG
Matrix in that both tools involve plotting a
firm’s divisions in a schematic diagram; this
is why they are both called portfolio
matrices. But there are four important
differences between the BCG Matrix and the
IE Matrix, as follows: 1. The x and y axes are
different. 2. The IE Matrix requires more
information about the divisions than does
the BCG Matrix. 3. The strategic implications
of each matrix are different. For these
reasons, 4. The IE Matrix has nine quadrants
versus four in a BCG Matrix.
Grand Strategy Matrix : All organizations
can be positioned in one of the Grand
Strategy Matrix’s four strategy quadrants. A
firm’s divisions likewise could be positioned.
the Grand Strategy Matrix is based on two
evaluative dimensions: (1) competitive
Why ”mathcing” internal with external factors such an important strategic management activity ?
Yes, because :
- Strategy id defined as the match an organization makes between itsinternal resources and skills
and the opportunities and risk created by its external factor
- The tools rely on information derivered from the input stage to match external opportunities
and threats with internal strenghths and weakness
- Matching external and internalkey factors is the essential for effectively generating feasible
alternative strategies

SPANCE Matrix Apple

Financial Position (FP) Stability Position (SP)

Increment in net sales 6,00 Technological change - 2,00
Increment in earnings for share 5,00 Price range of competing products - 3,00
Return on assets 5,00 Competitive pressure - 3,00
Revenue 6,00 Barriers to entry into market - 4,00
Average financial position 5,50 Average stability position - 3,00
Competitive Position (CP) Industry Position (IP)
Product quality - 5,00 Growth potential 5,00
Customer loyalty - 4,00 Profit potential 6,00
Technological know – how - 4,00 Financial stability 5,00
Control over suppliers and distributor – 3,00 Ease of entry in a market 6,00
Average competitive position - 4,00 Average industry position 5,50

Strategy formulation framework includes three stages and nine analytical tools

#Stage 1 : The Input Stage

External Factor Evaluation Competitive Profile Matrix Internal Factor Evaluation

(EFE) Matrix (CPM) (IFE) Matrix

#Stage 2 : The Matching Stage

SWOT SPACE BCG IE Grand Strategy

Matrix Matrix Matrix Matrix Matrix

#Stage 3 : The Decision Stage

Quantitative Strategic Planning Matrix (QSPM)

= All the stage and tools are important because each of the have their own power and can become
a goos strategy if the company can “Match” all of the tools in to a good stage “procedural” can
related.

SWOT Matrix Yourself

Strength (S) Weakness (W)

Internal Factor
- On time - Lazy
- Positive thinking - Mood changes
- Responsible - Forgetful
External Factor - Patient - Little shy in front of a lot
- Brave people
Opportunities (O) S – O Strategies W – O Strategies

- To an S1/ bacheor’s degree - Maintain and improve my - Try to not to be lazy to

academic and non academic improve personality
achievement so that I can - Try to appear confident in
graduate from S1 near a lot people

Threats (T) S – T Strategies W – T Strategies

- Much more experience labor
- Higher competition to get the
job
- Many scholar from other
collages are more benefit
- Find more connection for job - Keep trying and never give
- Improve skills to get value in up
yourself - Had to adapt to environment
or near a lot of people