1. I: Assignment for Session 6
For Dell
I: Illustrate the development of one strategy cell, e.g., SO, WO, ST, or WT.
Identify the relevant internal (S or W) and external (O & T) conditions
State a strategy that builds on the internal and external condition
Use the TOWS form & submit a copy at beginning of class. Keep a copy.
Individuals: be prepared to use the value chain model and distinctive competency concepts to justify the strategy stated.
Strategic Management
Developing Alternative Strategies

2. TOWS -- Developing Alternative Strategies
STRENGTHS – S
WEAKNESSES - W
OPPORTUNITIES – O
SO STRATEGIES
WO STRATEGIES
THREATS - T
ST STRATEGIES
WT STRATEGIES
Internal
External
Strategic Management
Developing Alternative Strategies

3. Checklist for alternative strategies
Begins with an action verb--which helps us keep an presentfuture focus
Builds on intersecting internal/external forces
Applies learned concepts
Is feasible and realistic
Has value
Will give a good return on resources invested to do it
Strategic Management
Developing Alternative Strategies

4. Developing Alternative Strategies
Analysis concepts
Strategy: purpose, formulation vs. implementation & elements of each; generic types
Strategic Management: process & sub tasks, strategic decision making, top management’s role
Hierarchy of strategy: corporate, business, functional
Organizational effectiveness: goal, RB, IP, stakeholders
Objectives vs. goals: criteria to distinguish; requirements of objectives
Analyzing external environment: societal & task; how to do it, Porter model,
Analyzing internal environment
Resource-based: core & distinctive competencies, elements of sustainability
Value chain
Scanning internal resources: structure, functional capabilities
SWOT and building a TOWS matrix of alternative strategies
Corporate strategy: directional (growth, stability, retrenchment), portfolio analyis, parenting
Functional strategies: outsourcing, marketing, finance, R&D, operations, HR, IT
3 tests of distinctive competency
Financial performance and condition
Implementing strategy: role of programs, budgets, procedures
Strategic audit
Strategic Management
Developing Alternative Strategies

5. Assignment for Session 7
H&W Ch 5, Section 5.4  Business Strategies
Articles on Amazon,  Costco, and Southwest Airlines
Study PFS: Daisytek’s growth strategy case.  Reading Packet 1:  
 Study questions for class discussion
What is Daisytek’s corporate strategy?
What is PFS’ business strategy?  Does it differ from Daisytek’s core business strategy?
What functional strategies are key to Daisytek's current or future success? Why?
Quiz on the PFS case based on assignment questions is certain.
Strategic Management
Developing Alternative Strategies