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BUS 450 ch. 6
BUS ch. 6
| Question | Answer |
|---|---|
| Conservative Quadrant | In a SPACE Matrix analysis, when the firm’s directional vector points in the upper-left quadrant it suggests that the firm should pursue conservative strategies such as market penetration. |
| Question marks | A quadrant in the BCG Matrix for divisions that have a low relative market share position but compete in a high-growth industry; this is the upper-right quadrant |
| WO strategies | Strategies that result from matching a firm’s internal weaknesses with its external opportunities. |
| Grand Strategy Matrix | A four-quadrant, two-axis tool for formulating alternative strategies. |
| Strategy formulation analytical framework | A three-stage, nine-matrix array of tools widely used for strategic planning as a guide: (stage 1: input stage; stage 2: matching stage; stage 3: decision stage). |
| WT strategies | Strategies that result from matching a firm’s internal weaknesses with its external threats. |
| Decision stage | Stage 3 of the strategy formulation analytical framework that involves development of the Quantitative Strategic Planning Matrix (QSPM). |
| Recommendations Page | The page in a strategic planning case project where recommendations are listed along with an estimated dollar (respective currency) amount for the expected cost (or savings) of each recommendation over the next three years. |
| Input stage | Stage 1 of the strategy formulation analytical framework that summarizes the basic input information needed to formulate strategies; consists of an EFEM, CPM, and IFEM. |
| Directional vector | In a SPACE Matrix analysis, this line begins at the origin and goes into one of four quadrants, revealing the type of strategies recommended for the organization: aggressive, competitive, defensive, or conservative. |
| Industry growth rate | The vertical axis in a BCG Matrix; the average percentage increase or decrease in sales or revenues this year (versus last year) for a given industry. |
| Defensive Quadrant | In a SPACE Matrix analysis, when the firm’s directional vector goes into the lower-left quadrant it suggests that the firm should pursue defensive strategies such as retrenchment. |
| ST strategies | Strategies that result from matching a firm’s internal strengths with its external threats. |
| Matching | When an organization matches its internal strengths and weaknesses with its external opportunities and threats using, for example, the SWOT, SPACE, BCG, IE, or GRAND Matrices. |
| Sum Total Attractiveness Score (STAS) | In a QSPM, this is the sum of the Total Attractiveness Scores in each strategy column; value reveals which strategy is most attractive in each set of alternatives. |
| Competitive position | (CP) One of four dimensions or axes of the SPACE Matrix; determines an organization’s competitiveness, |
| Financial position | (FP) One of four dimensions or axes of the SPACE Matrix that determines an organization’s financial strength, considering such factors as return on investment, leverage, liquidity, working capital, and cash flow. |
| Stars | A quadrant in the BCG Matrix for divisions that have a high relative market share position and compete in a high-growth industry; this is the upper-left quadrant. |
| Matching stage | Stage 2 of the strategy formulation framework that focuses on generating feasible alternative strategies by aligning internal with external factors by using five matrices: BCG, IE, SWOT, GRAND, and SPACE. |
| Cash cows | A quadrant in the BCG Matrix for divisions that have a high relative market share position but compete in a low-growth industry; they generate cash in excess of their needs are often milked; this is the lower-left quadrant. |
| Stability position (SP) | determines how stable or unstable a firm’s industry is, |
| Quantitative Strategic Planning Matrix (QSPM) | An analytical technique designed to determine the relative attractiveness of feasible alternative actions. This technique comprises Stage 3 of the strategy formulation analytical framework; it objectively indicates which alternative strategies are best. |
| Strengths-Weaknesses-Opportunities-Threats Matrix (SWOT) | The most widely used of all strategic planning matrices; matches a firm’s internal strengths and weaknesses with its external opportunities and threat |
| Internal-External Matrix (IE) | A nine-quadrant, strategic planning analytical tool that places an organization’s various divisions as circles in a displaybased on tthe segment’s IFE total weighted scores on the x-axis and the segment’s EFE total weighted scores on the y-axis. |
| grow and build, hold and maintain, or harvest or divest. | Internal-External Matrix is divided into three major regions that have different strategy implications: |
| Attractiveness Scores | In a QSPM, the numerical value (rating) that indicates the relative attractiveness of each strategy given a single internal or external factor. |
| Business portfolio | Autonomous divisions (or profit centers or segments) of an organization as represented by circles in BCG and IE matrices. |
| Aggressive Quadrant | In a SPACE matrix analysis, when the firm’s directional vector points in the upper-right quadrant, the firm should pursue aggressive strategies. |
| SO strategies | Strategies that result from matching a firm’s internal strengths with its external opportunities. |
| Industry position (IP) | One of four dimensions or axes of the SPACE Matrix that determines how strong or weak a firm’s industry is |
| Champions | Individuals most strongly identified with a firm’s new idea, product, or service and whose futures are linked to its success. |
| Dogs | A quadrant in the BCG Matrix for divisions that have a low relative market share position and compete in a low-growth industry; this is the lower-right quadrant. |
| Recommendation | Any alternative strategy that is selected for implementation. |
| Relative market share position | The horizontal axis in a BCG Matrix, which is the firm’s particular segment’s market share (or revenues or number of stores) divided by the industry leader’s analogous number. |
| Portfolio analysis | A tool that compares divisions of a firm to determine how best to allocate resources among those divisions. |
| Boston Consulting Group Matrix (BCG) | A four-quadrant, strategic planning analytical tool that places an organization’s various divisions as circles in a display (similar to the IE Matrix) based on two key dimensions: relative market share position and industry growth rate. |
| Total attractiveness scores (TAS) | In a QSPM, the product of multiplying the weights by the Attractiveness Scores in each row. |
| Competitive Quadrant | In a SPACE Matrix analysis, when the firm’s directional vector points in the lower-right quadrant it suggests that the firm should pursue competitive strategies such as horizontal integration. |
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