Strategy Analysis & Choice
                       •           Establishing long-term objectives
                            Generating alternative strategies
                            Selecting strategies to pursue
                            Best alternative ==> achieve mission & 
                     objectives
       Copyright © 2009 Pearson Education, Inc. 
       Publishing as Prentice Hall
     Ch 7                              Copyright © 2011 Pearson Education
 Alternative Strategies Derive From:
  •  Vision
  •  Mission
  •  Objectives
  •  External audit
  •  Internal audit
  •  Past successful strategies
  Generating Alternatives
 •  Manageable set of the most attractive alternative strategies must 
    be developed 
 •  Adv. Disadv. trade offs costs and benefits of these strategies should 
    be determined. 
 •  Participation in generating alternative strategies should be as broad 
    as possible
 •  Alternative strategies proposed by participants should be 
    considered, discussed, and ranked in order of attractiveness 
    Comprehensive Strategy-Formulation Framework
                                      Stage 1:
                                The Input Stage 
                                                                                                          
                                       Stage 2:
                                The Matching Stage
                                       Stage 3:
                                 The Decision Stage
                                            Stage 1:
                                     The Input Stage 
                                      Internal Factor EvaluationMatrix (IFE)
                        External Factor EvaluationMatrix (EFE)
  •Basic input information for the matching & decision stage matrices
                                                
  •Requires strategists to quantify subjectivity early in the process
  •Good intuitive judgment always needed