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study guideII fall2010

# study guideII fall2010 - MGT 476 Topics to Study for the...

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MGT 476 Topics to Study for the Second Exam Study Chapter 6 especially the sections on the SWOT Matrix, BCG Matrix, IE Matrix, and Grand Strategy Matrix. Know these sections in great detail. Strengths – S List Strengths Weaknesses – W List Weaknesses Opportunities – O List Opportunities SO Strategies Use strengths to take advantage of opportunities WO Strategies Overcoming weaknesses by taking advantage of opportunities Threats – T List Threats ST Strategies Use strengths to avoid threats WT Strategies Minimize weaknesses and avoid threats Limitations to swot Does not show how to achieve a competitive advantage Provides a static assessment in time May lead the firm to overemphasize a single internal or external factor in formulating strategies Boston Consulting Matrix Enhances multidivisional firm in formulating strategies Autonomous divisions = business portfolio Divisions may compete in different industries Focus on market-share position & industry growth rate

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Limitations COUNTERCLOCKWISE Static (in time) Limited by having only four cells…cannot capture “average” Simplistic…only one factor determines each axis The size of the circle is REVENUE, and the slice of pie is indicates the proportion of corporate PROFIT generated by that division. IE matrix Positions an organization’s various divisions in a nine-cell display Similar to BCG Matrix except the IE Matrix: Requires more information about the divisions Strategic implications of each matrix are different Based on two key dimensions The IFE total weighted scores on the x -axis The EFE total weighted scores on the y -axis Divided into three major regions Grow and build – Cells I, II, or IV Hold and maintain – Cells III, V, or VII Harvest or divest – Cells VI, VIII, or IX
Grand Strategy matrix Tool for formulating alternative strategies Based on two dimensions Competitive position Market growth International strategies Be able to recognize and describe different international strategies. Exporting Common way to enter new markets No need to establish operations in other countries Establish distribution relationships through contractual relationships May have high transportation cost May enter high import tariffs May have less control on marketing and distribution Licensing/Franchising strategy Firm authorizes another firm to manufacture and sell it’s products Licensing firm is paid royally on each unit produced and sold Licensee takes risks in manufacturing investments Least risky way to enter a foreign market Licensing firm loses control over product quality and distrubtion Strategic alliances or joint ventures Enables firms to share risks and resources to expand into international ventures

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study guideII fall2010 - MGT 476 Topics to Study for the...

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