Strategy

Analysis and
Choice:
SWOT Matrix

Chapter Eight
 A Comprehensive Strategic-
Management Model

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 The Process of Generating and
Selecting Strategies
 A manageable set of the most attractive
alternative strategies must be developed
 The advantages, disadvantages, trade-
offs, costs, and benefits of these
strategies should be determined

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 The Process of Generating and
Selecting Strategies
 Identifying and evaluating alternative
strategies should involve many of the
managers and employees who earlier
assembled the organizational vision and
mission statements, performed the
external audit, and conducted the internal
audit.

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 The Process of Generating and
Selecting Strategies
 Alternative strategies proposed by
participants should be considered and
discussed in a series of meetings.
 Proposed strategies should be listed in
writing.
 When all feasible strategies identified by
participants are given and understood, the
strategies should be ranked in order of
attractiveness.
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 A Comprehensive Strategy-
Formulation Framework
 Stage 1 - Input Stage
 summarizes the basic input information
needed to formulate strategies
 consists of the EFE Matrix, the IFE Matrix,
and the Competitive Profile Matrix (CPM)

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 A Comprehensive Strategy-
Formulation Framework
 Stage 2 - Matching Stage
 focuses on generating feasible alternative
strategies by aligning key external and internal
factors
 techniques focused with the Strengths-
Weaknesses-Opportunities-Threats (SWOT)
Matrix

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 A Comprehensive Strategy-
Formulation Framework
 Stage 3 - Decision Stage
 involves the selection of most feasible
strategies.
 reveals the relative attractiveness of
alternative strategies and thus provides
objective basis for selecting specific
strategies

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 The Matching Stage

 The Strengths-Weaknesses-
Opportunities-Threats (SWOT) Matrix
helps managers develop four types of
strategies:
 SO (strengths-opportunities) Strategies
 WO (weaknesses-opportunities) Strategies
 ST (strengths-threats) Strategies
 WT (weaknesses-threats) Strategies

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 The Matching Stage

 SO Strategies  WO Strategies
 use a firm’s  aim at improving
internal strengths internal
to take advantage weaknesses by
of external taking advantage
opportunities of external
opportunities

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 The Matching Stage

 ST Strategies  WT Strategies
 use a firm’s  defensive tactics
strengths to avoid directed at
or reduce the reducing internal
impact of external weakness and
threats avoiding external
threats

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 SWOT Matrix

1. List the firm’s key external opportunities

2. List the firm’s key external threats
3. List the firm’s key internal strengths
4. List the firm’s key internal weaknesses
5. Match internal strengths with external
opportunities

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 SWOT Matrix (cont.)

6. Match internal weaknesses with external

opportunities, and record the resultant WO
Strategies
7. Match internal strengths with external
threats, and record the resultant ST
Strategies
8. Match internal weaknesses with external
threats, and record the resultant WT
Strategies
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 A SWOT Matrix for Bitmap Mktg. Corp.
STRENGTHS WEAKNESSES
1. Carrying trusted & genuine products. 1. Lack of salesforce.
2. Increased in sales & acquired more
clients. 2. Limited market coverage.
SWOT Matrix 3. Friendly & trustworthy staff. 3. Inefficient marketing strategy.
4. Office location is not strategically
4. Effective low pricing strategy. located.
5. Six and a half office hours & on-time
delivery. 5. Lack of employees.

OPPORTUNITIES SO Strategies WO Strategies

1. Increasing demand for use of office 1. Develop a sales team to market products 1. Develop BTL strategies to increase
supplies & equipment. (S1, O1) sales (W3,O4)
2. Send flyers or quotations to other City's 2. Market development and penetration
2. Office modernization in the Philippines. firms. (S1,O2) in Northern Luzon.(W2,O3)
3. Hire additional two sales person
3. Market expansion in Northern Luzon. (W2,W5,O1)
4. Adaptation of marketing strategy.
5. Joint venture to large scale organization.

TREATS ST Strategies WT Strategies

1. Provide flyers or quotations to 1. Market development & penetration in
1. Higher competition existing & new prospect Northern Luzon. (W2,T1)
firms with product use & awareness 2. Develop a sales team to market the
2. Imitation or fake products. (S5,T1) products
3. Patronization of some firms to imitated
products. 2. Hire additional two sales person (S5, T1) (W1, T1, T3)
4. Global financial crisis.
5. Recession & firm shut-down.
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