BUS 490 Study guide 2

1. Matching is the key to effectively generating feasible alternative strategies for a company. Matching stage of the strategy-formulation framework consists of five techniques that can be used in any sequence: the Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, the SPACE Matrix, the BCG Matrix, the IE Matrix and the Grand Strategy Matrix. These tools rely on information derived from the input stage to match external opportunities and threats within internal strengths and weaknesses. The first is the SO Strategies; it uses a firm’s internal strengths to take advantage of external opportunities. The WO strategy. This strategy aims at improving internal weaknesses by taking advantage of external opportunities. ST Strategies uses a firm’s internal strengths to avoid or reduce the impact of external threats. The last strategy to use is the WT strategy. Defensive tactics directed at reducing internal weaknesses and avoiding external threats is used in this strategy. Examples: 1)JPMorgan chase has a strong brand name and financial position(Strength). They could use that to expand into other countries. 2) Another JPmorgan chase example would be if they decided to use their assets to acquire a competitor and take control of a major percentage of the industry. 3) Strong R&D expertise (internal Strength) and decreasing number of younger adults (external threat)= develop new products for elderly
2. each one; x-axis CP + IP; y-axis SP + FP 3. Up to the right, Size of circle is revenue, inside coloring is profit (example 59%) (make sure to average), IFE scores top, EFE on side
4. First, structure largely dictates how objectives and policies will be established. For example, objectives and policies established under a geographic organizational structure are couched in geographical terms. Second reason is that structure dictates how resources will be allocated. If an organization’s structure is set up along functional lines, then functional areas