Strategy Formulation, Situation Analysis and Business Analysis

1595 Words Jan 21st, 2014 7 Pages
Strategy Formulation: Situation Analysis and Business Strategy

Institut für Strategisches Management

Institut für Strategisches Management

Situational Analysis
Strategy Formulation - developing a corporation’s mission, objectives, strategies and policies Situation Analysis - the process of finding a strategic fit between external opportunities and internal strengths while working around external and internal weaknesses

Wheelen / Hunger, 2010, p 224



SWOT Analysis
SWOT- Strengths-WeaknessesOpportunities-Threats Strategy = opportunity / capacity Opportunity has no real value unless a company has the capacity to take advantage of that opportunity

Wheelen / Hunger, 2010, p 224

Institut für Strategisches
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4, Table 4-5 (p 174)

IFAS: Internal Factor Analysis Summary
Ch. 5, Table 5-2 (p 212)

SFAS: Strategic Factor Analysis Summary
Ch. 6, Figure 6-1 (p 226)

Institut für Strategisches Management

SFAS – Matrix - Structure
1. SWOT - strategic factors – list of most important EFAS and IFAS factors 2. Weight: assign weights to all factors
(total 1.00)

3. Rating: 5.0 = outstanding; 1 = poor 4. Weighted Score: weight score x rating score 5. Duration: short, intermediate, long
(only in combined table)

6. Comments
Wheelen / Hunger, 2010, p 225

Institut für Strategisches Management

SFAS – Matrix
External and internal strategic factors are listed in one table Combination of EFAS and IFAS tables into the SFAS matrix deals with some of the criticisms of SWOT analysis
Reduction of list of factors to a manageable number Weight is put to each factor Allows one factor to be listed as both a strength and a weakness, as an opportunity and threat

Institut für Strategisches Management

SFAS – Matrix (1)

FIGURE 6-1 Strategic Factor Analysis Summary (SFAS) Matrix
Wheelen / Hunger, 2010, p 226

Institut für Strategisches Management

SFAS – Matrix (2)

FIGURE 6-1 (continued) Strategic Factor Analysis Summary (SFAS) Matrix
Wheelen / Hunger, 2010, p 226

Institut für Strategisches Management

SFAS – Matrix (3)

FIGURE 6-1 (continued)…

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