Notes #5 - 1 In Column 3(rating assign a 1.0 to 4.0 rating...

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1. In Column 3 ( rating ), assign a 1.0 to 4.0 rating to each factor to indicate whether that factor represents a major weakness (rating 1), a minor weakness (rating 2), a minor strength (rating 3), or a major strength (rating 4). Note that strengths must receive a 4 or 3 rating and weaknesses must receive a 1 or 2 rating . Ratings are, thus, company based, whereas the weights in Step 2 are industry based. 2. In Column 4 ( weighted score ), multiply each factor's weight by its rating to determine a weighted score for each variable. 3. Sum the weighted scores for each variable to determine the total weighted score for the organization. Internal/External Matrix Plots results of IFE (x-axis) and EFE (y-axis) Firms that fall into cells I, II, IV, can be described as
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Unformatted text preview: grow and build Firms that fall into cells III, V, or VII can be managed best with hold and maintain strategies Firms that fall into cells VI, VIII, or IX are recommended to harvest or divest Functional Strategies Chapter Objectives Understand the various functional strategies that can be used to achieve the organizational goals and objectives. Understand the differences between vertical and horizontal growth. Understand the differences between concentric and conglomerate diversification. Apply the principles of portfolio analysis and how the results help guide decisions in companies with multiple products and businesses....
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