Strategic

Analysis &
Choice
PRESENTED BY:
GUTHPUDEEN AIBAK(22414010)
HIMANSHU VERMA(22414012)
IMAAD HARIS(22414013)
Strategic Analysis & Choice
Strategy Analysis & Choice is a process that reconciles strategic actions, market opportunities, corporate strengths and
resources, values of managers and legal requirements and social responsibilities to select “The Best” mission, strategic
thrust and set of strategic actions.

It is meant to answer questions like

Why?

What?

Who?

How?

When?

Where?
Nature of Strategic Analysis & Choice
 Establish long-term objectives

 Generating alternative strategies

 Evaluating feasible alternative strategies

 Selecting strategies to pursue

Process of Strategic Analysis & Choice
Evaluate the current Business performance

Evaluate current strategy’s consistency & assess the

urgency to change it.

Develop & evaluate strategic proposals

Commit and prepare to implement

 External

Base of Environment

Alternative
Strategies
 Vision Current Alternative
 Mission
Strategy
Strategy
 Objectives

 Internal Audit

 External Audit
Internal
Environment
 Past successful strategies
 Techniques of Analysis
Several techniques are there which can be used for these analysis, some of them are:

 SWOT Matrix

 IFE(Internal Factor Evaluation)

 EFE(External Factor Evaluation)

 SPACE Matrix

 BCG Matrix

 GE 9 Cell Matrix

 Grand Strategy Matrix

 QSPM Matrix
SWOT Matrix
Each of these techniques work on different factors and different criterion and per analysis we can derive & opt for
different strategy.

For Example:
SWOT Matrix
S: Strength
Evaluate internal factor and find what are strength points for the firm.
W: Weakness
Same way after evaluating internal factors find out the weaknesses.
O: Opportunity
Identify the opportunities in external environment.
T: Threat
Same way identify the potential threats to the business entity.

After analysing these factor strategists can opt different-different strategies like SO strategy, WO strategy, ST strategy,
etc.
 S: Strength W: Weakness
SWOT Matrix
(List Strengths) (List Weaknesses)

SO Strategies WO Strategies
O: Opportunity
Use strengths to take advantage of Overcome weaknesses by taking
(List Opportunities)
opportunities. advantage of opportunities.

WT Strategies
T: Threat ST Strategies
Minimize weaknesses to avoid
(List threats) Use strength to avoid threats.
risk of threats.
 FS (Financial Strength)

Conservative Aggressive
SPACE Matrix
Strategic
CA IS
Position (Competitive (Industry
& Advantage) Strength)

Action

Evaluation
Defensive Competitive
In SPACE matrix two axes FS, CA are
internal dimensions whereas other two
IS & ES are external ones.

ES (Environmental
Stability)
Some of the dimensions used in Space Matrix
Internal Strategic Position
Financial Strength(FS)
• Risk involved in business;
• Debt to equity ratio;
• Working capital condition;
• Leverage;
• Liquidity;
• Ease of exit from market;
• Cash flow statement;
• Return on investment, etc.
Competitive Advantage(CA)
• Access to the market;
• Market share;
• Quality of products & services;
• Product life cycle;
• Customer loyality;
• Capacity/Location/Layout;
• Technological know-how;
• Backword & Forward integration, etc.
External Strategic Position
Environmental Stability(ES)
• Impact of technology;
• Price elasticity of demand;
• Political situation;
• Demand variability;
• Price range of competing products;
• Rate of inflation;
• Competitive pressure, etc.
Industry Strength(IS)
• Demand & supply factors;
• Resource utilization;
• Growth potential;
• Profit potential;
• Financial stability;
• Productivity/Capacity utilization;
• Capital intensity;
• Ease of entry into market, etc.
Conclusion
• It is almost next to impossible to consider all feasible alternatives that could benefit the firm, because
there are an infinite number of possible actions and infinite number of ways to implement those actions.
Hence, a manageable set of the most attractive alternative strategies must be developed.
• The strategic analysis process provides valuable insights into the internal and external factors
influencing our organization's performance;
• The strategic choices made after this analysis align with organizational goals, leveraging strengths to
capitalize on opportunities while addressing weaknesses and mitigating threats;
• The chosen strategies reflect a comprehensive understanding of resources, market positioning, and the
competitive environment, ensuring a sustainable and competitive advantage.
• Continual monitoring and adaptation will be crucial to ensure the selected strategies remain relevant and
effective in an ever-evolving business landscape.
Thank
You