Case Analysis Format

1 Background of the Study 5 Alternative Courses of Action

2 Statement of the Problem 6 Conclusion

7 Recommendation
3 Objectives of the Study

4 SWOT Analysis / Other Tools

A Strategic Audit for a Corporation 1

The Strategy-Formulation Analytical Framework

Stage 1: Input Stage

External Factor Evaluation (EFE) Matrix Internal Factor Evaluation (IFE) Matrix

Competitive Profile Matrix (CPM)

Stage 1I: Matching Stage

Strengths, Weaknesses, Opportunities,
Internal-External Matrix
Threats (SWOT) Matrix

Strategic Position & Action Evaluation

Grand Strategy (GS) Matrix
(SPACE) Matrix

Boston Consulting Group (BCG) Matrix

Stage III: Decision Stage

Quantitative Strategic Positioning Matrix
A Strategic Audit for a Corporation 2
(QSPM)
Stage 1: Input Stage

External Factor Evaluation (EFE) Matrix

 allows strategists to summarize and evaluate economic,

social, cultural, demographic, environmental, political,
governmental, legal, technological, and competitive
information.

A Strategic Audit for a Corporation 3

 Stage 1: Input Stage External Factor Evaluation (EFE) Matrix

0.0 (not important)

to
1.0 (very important)

4 – the response is SUPERIOR

3 - the response is ABOVE AVERAGE
2 - the response is AVERAGE
1 - the response is POOR

A Strategic Audit for a Corporation 4

Stage 1: Input Stage External Factor Evaluation (EFE) Matrix

A Strategic Audit for a Corporation 5

Stage 1: Input Stage

Internal Factor Evaluation (IFE) Matrix

 summarizes and evaluates the major strengths and

weaknesses in the functional areas of a business, and it
also provides a basis for identifying and evaluating
relationships among those areas

A Strategic Audit for a Corporation 6

 Stage 1: Input Stage Internal Factor Evaluation (IFE) Matrix

0.0 (not important)

to
1.0 (very important)

4 – MAJOR STRENGTH
3 – MINOR STRENGTH
2 – MINOR WEAKNESS
1 – MAJOR WEAKNESS

A Strategic Audit for a Corporation 7

Stage 1: Input Stage Internal Factor Evaluation (IFE) Matrix

A Strategic Audit for a Corporation 8

Stage 1: Input Stage Competitive Profile Matrix (CPM)

Competitive Profile Matrix (CPM)

 identifies a firm’s major competitors and its particular strengths and

weaknesses in relation to a sample firm’s strategic position.

 the weights and total weighted scores in both a CPM and an EFE have the
same meaning. However, critical success factors in a CPM include both
internal and external issues.

A Strategic Audit for a Corporation 9

Stage 1: Input Stage
Competitor 1 Competitor 2 Competitor 3

0.0 (not important)

to
1.0 (very important)

4 – MAJOR STRENGTH
3 – MINOR STRENGTH
2 – MINOR WEAKNESS
1 – MAJOR WEAKNESS

A Strategic Audit for a Corporation 10

Stage 1I: Matching Stage

Strengths, Weaknesses, Opportunities, Threats (SWOT)

Matrix

 is an important matching tool that helps managers develop four

(4) types of strategies:
 SO (strengths-opportunities) Strategies
 WO (weaknesses-opportunities) Strategies
 ST (strengths-threats) Strategies
 WT (weaknesses-threats) Strategies

A Strategic Audit for a Corporation 11

 Strengths, Weaknesses, Opportunities,
Stage 1I: Matching Stage Threats (SWOT) Matrix

A Strategic Audit for a Corporation 12

 Strengths, Weaknesses, Opportunities,
Stage 1I: Matching Stage Threats (SWOT) Matrix

A Strategic Audit for a Corporation 13

 Strengths, Weaknesses, Opportunities,
Stage 1I: Matching Stage Threats (SWOT) Matrix

A Strategic Audit for a Corporation 14

Stage 1I: Matching Stage

Internal – External (IE) Matrix

 involves plotting organization divisions in a

schematic diagram; this is why they are both
called “portfolio matrices.”

A Strategic Audit for a Corporation 15

Stage 1I: Matching Stage Internal-External Matrix

A Strategic Audit for a Corporation 16

 Stage 1I: Matching Stage

Strategic Position & Action Evaluation (SPACE) Matrix

 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 (2) internal dimensions
1. financial position [FP]
2. competitive position [CP])

 Two (2) external dimensions

1. stability position [SP]
2. industry position [IP]
A Strategic Audit for a Corporation 17
 Strategic Position & Action Evaluation
Stage 1I: Matching Stage (SPACE) Matrix

Y axis = 5.6 + -2.6 = 3

X axis = -2.8 + 6 = 3.2

A Strategic Audit for a Corporation 18

 Strategic Position & Action Evaluation
Stage 1I: Matching Stage (SPACE) Matrix

A Strategic Audit for a Corporation 19

Stage 1I: Matching Stage

Grand Strategy Matrix

 is based on two (2) evaluative dimensions:
1. Competitive position
2. Market (Industry) growth

A Strategic Audit for a Corporation 20

Stage 1I: Matching Stage Grand Strategy (GS) Matrix

A Strategic Audit for a Corporation 21

Stage 1I: Matching Stage Grand Strategy (GS) Matrix

A Strategic Audit for a Corporation 22

Stage 1I: Matching Stage

Boston Consulting Group (BCG) Matrix

 is designed to help with long-term strategic planning, to help a

business consider growth opportunities by reviewing its portfolio of
products to decide where to invest, to discontinue, or develop
products.

A Strategic Audit for a Corporation 23

Stage 1I: Matching Stage Boston Consulting Group (BCG) Matrix

A Strategic Audit for a Corporation 24

Stage 1I: Matching Stage Boston Consulting Group (BCG) Matrix

A Strategic Audit for a Corporation 25

Stage III: Decision Stage

Quantitative Strategic Positioning Matrix (QSPM)

 this technique objectively indicates which alternative strategies are

best

 a useful analytical tool that helps you determine the relative

attractiveness of different strategies.

 it asks you to identify the important external and internal critical

success factors for your business unit, and then helps you assess
these strategies in the light of these critical success factors.

A Strategic Audit for a Corporation 26

 Quantitative Strategic Positioning Matrix
Stage III: Decision Stage (QSPM)

A Strategic Audit for a Corporation 27

 Quantitative Strategic Positioning Matrix
Stage III: Decision Stage (QSPM)

0.0 (not important)

to
1.0 (very important)

1 – not attractive
2 – somewhat attractive
3 – reasonably attractive
4 – highly attractive

A Strategic Audit for a Corporation 28

Stage III: Decision Stage

A Strategic Audit for a Corporation 29