CHAPTER FIVE

STRATEGY FORMULATION: STRATEGY ANALYSIS AND CHOICE

5.1. The nature of strategy analysis and choice

There are many strategies that are used to achieve the goals and objectives of the organization.
Each alternative strategy has countless variations. For example, market penetration can include
adding salespersons, increasing advertising expenditures, coopering, and using similar actions to
increase market share in each geographic area. Vertical integration strategies allow a firm to gain
control over distributors, suppliers, and/or competitors whereas horizontal integration refers to a
strategy of seeking ownership of or increased control over a firm's competitors. One of the most
significant trends in strategic management today is the increased use of horizontal integration as a
growth strategy.

Types of strategy
5.2. Corporate level strategy: Major corporate strategies (growth, stability & defensive)
5.3. Business level strategy: The five generic competitive strategy
5.4. Functional Level Strategy
5.5. Long term objectives
5.6. Comprehensive strategy formulation framework
5.6.1. The decision stage
5.6.2. BSC model

5.6.3. The 7’S model