1. Strategic ManagementDeveloping Alternative Strategies1 Session 6: Developing Strategic Alternatives Complete ETS field exam signups—next time Please hand in your assignment Initial groups are set; we will use them in class today

2. Strategic ManagementDeveloping Alternative Strategies2 Session 6: Assignment Study H&W Ch 5, Section 5.4 Business Strategies Readings in Vista on: Dell 2003, Dell 2005, and Dell 2006 Value chain analysis Illustrate the development of each strategy cell, e.g., SO, WO, ST, WT (Reference H&W, Fig 5.2). (TOWS forms are available from the course web site in Assignments and Forms section.) One entry per strategy cell is sufficient. a. State S and O b. State SO strategy that follows from the S and O c. Include results in a SWOT or TOWS slide Repeat above steps for WO, ST, and WT. A different firm can be used for each, but be sure to identify the firm. Submit a paper copy at the beginning of class. Be prepared to use the value chain model and distinctive competency concepts to justify each strategy presented.

3. Strategic ManagementDeveloping Alternative Strategies3 Margin The internal value chain Primary Activities Support Activities Procurement Serv- ice Technology Development Human resource management Firm infrastructure Inbound Logistics Opera- tions Out- bound Logistics Market- ing and sales Which cells are strong? Which are weak? Which offer competitive opportunities? Which cells are strong? Which are weak? Which offer competitive opportunities? What strengths and weaknesses are revealed by this analysis?

4. Strategic ManagementDeveloping Alternative Strategies4 STRENGTHS – SWEAKNESSES - W OPPORTUNITIES – O SO STRATEGIES WO STRATEGIES THREATS - T ST STRATEGIESWT STRATEGIES Internal External TOWS -- Developing Alternative Strategies

5. Strategic ManagementDeveloping Alternative Strategies5 Checklist for stating alternative strategies Begin with an action verb--which helps us keep an present  future focus Build on intersecting internal/external forces Apply learned concepts Assure strategy has value Consider if strategy is feasible and realistic Consider if strategy will give a good return on resources required

6. Strategic ManagementDeveloping Alternative Strategies6 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, culture, functional capabilities Strategic audit (appendix 11C) SWOT and building a TOWS matrix of alternative strategies Corporate strategy: directional (growth, stability, retrenchment), portfolio analysis, 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

7. Strategic ManagementDeveloping Alternative Strategies7 Session 7: Applying concepts to PFS case Assignment Study H&W Ch 5, Section 5.4 Business Strategies PFS: Daisytek’s growth strategy case Study questions for quiz prep & 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.