6. strategy formulation

7/28/2019 6. Strategy Formulation

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ProgramCourse

1. Presentation & Strategy definition2. Administrative Process3. Strategy Process

4. Strategic Thinking & Scenario'sVisualization

5. Strategic Diagnostic

6. Strategy Formulation7. Strategy Types8. Performance Measurement9. Organizational Structure10. Cultural Change


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MatrixSWOT

http://www.businessinsurance.org/wp-content/uploads/2012/02/business-swot-quotes.jpg


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MatrixBCG


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MatrixS.P.E.A (P.E.Y.E.A)

Setting strategy based on four

factors: Financial Strength

Competitive Advantage Environmental Stability

Industrial Strength


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1

2

3

4

5

6

-6

-5

-4

-3-2

-1 1 2 3 4 5 6-6 -5 -4 -3 -2 -1

Financial Strength

Environmental Stability

ompetitivedvantage

IndustrialStrength


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S.P.E.A Matrix Steps:1. Selecting relevant variables for

each factor


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S.P.E.A Matrix Steps:2. Qualify each of the variables as

follows:

+1 (worst) to +5 (best) forFinancial Strength and Industrial

Strength


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S.P.E.A Matrix Steps:2. Qualify each of the variables as

follows:

-5 (worst) to -1 (best) forCompetitive Advantage and

Environmental Stability


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S.P.E.A Matrix Steps:3. Calculate the average for each

factor


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S.P.E.A Matrix Steps:4. Adding Competitive Advantage

and Industrial Strength as X

coordinateAdding Financial Strength andEnvironmental Stability as Y

coordinate


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S.P.E.A Matrix Steps:5. Draw a vector from the origin to

XY coordinates


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S.P.E.A Matrix Steps:6. Identify the strategy type


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1

2

3

4

5

6

-6

-5

-4

-3-2

-1 1 2 3 4 5 6-6 -5 -4 -3 -2 -1

FS

ES

CA IS

Conservative

Strategy

Aggressive

Strategy

Defensive

Strategy

Competitive

Strategy


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12345

6

-6

-5-4-3-2-1 1 2 3 4 5 6-6 -5 -4-3 -2 -1

FS

ES

CA IS

Conservative

Strategy

Dont takeexcessive risk

Use the

organizational skills Functional

strategies


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12345

6

-6

-5-4-3-2-1 1 2 3 4 5 6-6 -5 -4-3 -2 -1

FS

ES

CA IS

Market penetration Market

development Product

development Conglomerate

diversification Concentric

diversification

AggressiveStrategy


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123456

-6-5-4-3-2-1 1 2 3 4 5 6-6 -5 -4-3 -2 -1

FS

ES

CA IS

Horizontalintegration

Vertical integration

Alliances Mergers Joint Ventures

Competitive

Strategy


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123456

-6-5-4-3

-2-1 1 2 3 4 5 6-6 -5 -4-3 -2 -1

FS

ES

CA IS Reduce operations Disinvestment Liquidation Reengineering

Defensive

Strategy


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MatrixRelational

DependenciaMocdd

Zona depoder

Zona deconflicto

Zona deproblemasautnomos

Zona dedependencia


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MatrixRelational

DependenciaMocdd

Zona depoder

Zona deconflicto

Zona deproblemasautnomos

Zona dedependencia


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MatrixRelational

List of Variables

Make the list of critical

variables that could explain the

system specifying the contextfor each variable.


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MatrixRelational

Prioritization of theVariables

Each expert must qualify each

variable between 0 and 3 in

accordance with theimportance level for thesystem.


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MatrixRelational

Prioritization of theVariables

Select at the very least the

most 10 or between the 10 and

15 important variables for thesystem.


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MatrixRelational

Incidence Analysis

Analyze how the rowvariable

affects the columnvariable.


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MatrixRelational

VariableTech.

renovation

Market

opening

Training

level

Technologicalrenovation

Market opening

Training level


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MatrixRelational

Type of

incidentDescripcin Valor

Strength Every effect causes variable modifications 2

ModerateThe effects cause variable changes without

altering the strengths or weaknesses1

Weak The effects cant cause variable changes 0

PotentialOther effects are required to cause changes in

the variables1

NullNo relationship exists between the variables

incidence 0

6. strategy formulation

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