STR MNGT Ch 6 ox 28 9

STR MNGT Ch 6 ox 28 9 - Chapter6 Generatingstrategies....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 6 Generating strategies. 6.1 Introduction The various strategic decisions, let it be operational, business or corporate levels need to be generated and gone are the days when “gut feeling”, “hunch” or even “from my past experience” methodologies are accepted willingly by managers and stakeholders. Today’s executive staff are educated, well exposed and knowledgeable, require much more rationality and even would like to participate and contribute towards any strategic decisions. Thus the decision makers have to understand that without a satisfactory rationalisation behind the decisions, executives might not be able to show full commitment and dedication in implementing the strategic plans. Very senior managers and especially the owner or the majority shareholders, will still make the final decision on which strategy to adopt but its derivation better be clear and systematic, rationally derived and acceptable by the majority if it is to be implemented successfully. There are several models that are made available today and though the most commonly used one is still Albert Humphrey’s from Stanford University. His SWOT Model which was applied on a research done on data gathered from the top fortune 500 companies in the mid 60’s is still being discussed and applied currently. Others have appeared and some are sustainable, while others are applicable but not as valued and therefore remain in the background appearing once in a while when the need arises. The ones to be discussed in this paper is based on its applicability as well as its academic values as related to other business disciplines as in finance, economics and operations. Models that have been identified and discussed are: a. SWOT, b. SPACE, c. Experience curve, d. Break-even point, e. Product life cycle, f. Porter’s Five factor Model, g. Blue Ocean Strategy. h. Portfolio Models: a. BCG, b. General Electric, c. SHELL 6.2 SWOT Model, 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Albert Humphrey’s SWOT Model in a nut shell is to match the opportunities and threats generated from the result of the external environmental analysis with that of strengths and weaknesses of the result of analysis from analysing the company itself. By matching these two groups of factors (external and internal) then a rational strategic decision can be derived. But deriving these factors can be a task of its own and it can be done through a thorough analytical process or derived through an in- depth discussion with senior personnel in an organisation. The degree of analysis is also dependent on the size and degree of competition faced by the company. From the standpoint of a small enterprise operated by members of a family and whose operations is confined to within a district, the owner operator could easily list out his company’s strengths and weaknesses based on his daily operations and the kinds of sales that he is getting. He also gauges the external environment to be able to list out another list of opportunities and threats and on discussion with the family members could within a short time finalise a list of the SWOT factors.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/27/2010 for the course GSM 5660 taught by Professor Ahmad during the Spring '10 term at Zhejiang University.

Page1 / 79

STR MNGT Ch 6 ox 28 9 - Chapter6 Generatingstrategies....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online