Strategic Management

Developing Alternative Strategies

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Session 6: Developing Strategic Alternatives

• Complete ETS field exam signups—next time

• Please hand in your assignment • Initial groups are set; we will use

them in class today

Strategic Management

Developing Alternative Strategies

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Session 6: Assignment

• Study • H&W Ch 5, Section 5.4  Business Strategies• Readings in Vista on:

• Dell 2003, Dell 2005, and Dell 2006 • Value chain analysis

• Illustrate the development of each strategy cell, e.g., SO, WO, ST, WT (Reference H&W, Fig 5.2). (TOWS forms are available from the course web site in Assignments and Forms section.)  One entry per strategy cell is sufficient.     a.  State S and O      b.  State SO strategy that follows from the S and O     c.  Include results in a SWOT or TOWS slide

• Repeat above steps for WO, ST, and WT.  A different firm can be used for each, but be sure to identify the firm.

• Submit a paper copy at the beginning of class. • Be prepared to use the value chain model and distinctive

competency concepts to justify each strategy presented.

Strategic Management Searching for strengths & weaknesses

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STRENGTHS – S WEAKNESSES - W

OPPORTUNITIES – O SO STRATEGIES WO STRATEGIES

THREATS - T ST STRATEGIES WT STRATEGIES

Strategic Management

Developing Alternative Strategies

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Mar

gin

Margin

The internal value chain

Primary Activities

Su

pp

ort

Act

ivit

ies

Procurement

Serv-ice

Technology Development

Human resource management

Firm infrastructure

InboundLogistics

Opera-tions

Out-bound

Logistics

Market-ingand

sales

Which cells are strong?

Which are weak?

Which offer competitive opportunities?

Which cells are strong?

Which are weak?

Which offer competitive opportunities?

What strengths and weaknesses are revealed by this analysis?

What strengths and weaknesses are revealed by this analysis?

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Developing Alternative Strategies

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STRENGTHS – S WEAKNESSES - W              

OPPORTUNITIES – O

   

SO STRATEGIES 

WO STRATEGIES

 

THREATS - T

 

ST STRATEGIES WT STRATEGIES

Internal

External

TOWS -- Developing Alternative Strategies

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Developing Alternative Strategies

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Checklist for stating alternative strategies

• Begin with an action verb--which helps us keep an present future focus

• Build on intersecting internal/external forces

• Apply learned concepts• Assure strategy has value• Consider if strategy is feasible and realistic • Consider if strategy will give a good return

on resources required

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Developing Alternative Strategies

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Analysis concepts

• Strategy: purpose, formulation vs. implementation & elements of each; generic types

• Strategic Management: process & sub tasks, strategic decision making, top management’s role

• Hierarchy of strategy: corporate, business, functional• Organizational effectiveness: goal, RB, IP, stakeholders• Objectives vs. goals: criteria to distinguish; requirements of objectives• Analyzing external environment: societal & task; how to do it, Porter model, • Analyzing internal environment

• Resource-based: core & distinctive competencies, elements of sustainability • Value chain• Scanning internal resources: structure, culture, functional capabilities

• Strategic audit (appendix 11C)• SWOT and building a TOWS matrix of alternative strategies• Corporate strategy: directional (growth, stability, retrenchment), portfolio

analysis, parenting• Functional strategies: outsourcing, marketing, finance, R&D, operations, HR, IT• 3 tests of distinctive competency• Financial performance and condition• Implementing strategy: role of programs, budgets, procedures

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Developing Alternative Strategies

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Session 7: Applying concepts to PFS case

Assignment• Study

• H&W Ch 5, Section 5.4  Business Strategies• PFS: Daisytek’s growth strategy case  

•  Study questions for quiz prep & class discussion

• What is Daisytek’s corporate strategy?• What is PFS’ business strategy?  Does it differ from

Daisytek’s core business strategy?• What functional strategies are key to Daisytek's

current or future success? Why? • Quiz on the PFS case based on assignment

questions is certain.