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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STRENGTHS – S
Session 6: Assignment
OPPORTUNITIES – O
THREATS - T
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Study
Strategic Management
• H&W Ch 5, Section 5.4 Business Strategies
• Readings in Vista on:
WEAKNESSES - W
SO STRATEGIES
WO STRATEGIES
ST STRATEGIES
WT STRATEGIES
Searching for strengths &
weaknesses
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• 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
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• 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
Developing Alternative Strategies
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Which cells are strong?
Which are weak?
Which offer competitive opportunities?
The internal value chain
Support
Activities
Firm infrastructure
Human resource management
Technology Development
Procurement
MarketOutServing
Inbound Operabound
ice
Logistics tions
and
Logistics
sales
Strategic
Management
What strengths and weaknesses are
revealed by this analysis?
Primary
Activities
Developing Alternative
Strategies
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TOWS -- Developing Alternative Strategies
STRENGTHS – S
WEAKNESSES - W
Internal
External
OPPORTUNITIES – O
THREATS - T
Strategic
Management
SO STRATEGIES
ST STRATEGIES
Developing Alternative Strategies
WO STRATEGIES
WT 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
Strategic
Management
Developing Alternative Strategies
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Analysis concepts
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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
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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
Strategic
Management
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.
Strategic
Management
Developing Alternative Strategies
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