ALTERNATIVE STRATEGY

BY

BIASTYA ADHIGANA

(D41181850)

GAYUH FADHEL FAISAL AKBAR

(D41180685)

POLITEKNIK NEGERI JEMBER

October 2019
 Chapter II

Discussion
The process of creating and choosing strategies

A set of the most interesting alternative strategies can be managed must be

developed. Advantage, losses, trade-offs, costs, and benefits of these strategies
must be determined. Identify and evaluating alternative strategies should
involving many managers and employees previously formulated a vision and
mission statement organization, conduct external audits and conduct internal
audits.
A. Comprehensive strategy formulation framework

B. Strategy formulation analytical framework

 Stage 1: The input stage
Contains basic input information needed for formulate a strategy. Push
input devices strategists to measure subjectivity during the initial stages of
the formulation process strategy more effectively.
 Stage 2: The matching stage

Focus on creating alternative strategies make sense by paying attention to

factors external and internal major. In most situation, the relationship between
external and internal more complex and the matching process requires in-
depth study of each strategy created.

 Strength-Weaknesses-Opportunities-threats (SWOT) Matrix

 SWOT is an important matching tool help managers develop

four types strategy: SO, WO, ST, and WT.
 SO (Strength-Opportunities) strategies utilize strength internal
company to take advantage of opportunities external.
 The WO (Weaknesses-Opportunities) strategy aims to fix
internal weaknesses by taking advantage of external opportunities.
 ST-Strength (Threats) strategy uses strength a company to
avoid or reduce the impact of external threats.
 WT (Weaknesses-Threats) strategy is a defensive tactic which
is directed to reduce internal weaknesses as well avoid external threats.

 SWOT matrix limitations

 SWOT does not show a way to achieve competitive advantage.
 SWOT is a static (or disjointed) assessment and subject to
time.
 SWOT analysis can make a company emphasize excess on one
internal or external factor certain in formulating a strategy. There is
an interrelation in between major internal and external factors which
are not indicated in SWOT but is important in use strategy.
 Strategy-Formulation Analytical Framework

Techniques designed to determine the relative attractiveness of viable

alternative strategies

 Quantitative Strategic Planning Matrix (QSPM)

 QSPM is a tool that allows strategists to evaluate alternative
strategies objectively, based on important external and internal success
factors identified earlier.
 Top QSPM base contains alternative strategies obtained from
the SWOT, SPACE, BCG, IE, and Grand Strategy mastrices.
  The specialty of QSPM is
1. The series of strategies can be observed sequentially or together.
2. Encourage strategists to incorporate relevant internal and external factors into
the decision process.
3. Developing QSPM minimizes the possibility that the main factors will be
missed or overweighted.
4. QSPM can be adapted for use by profit organizations and large and small
profit organizations so that it can be applied in almost every type of organization

 QSPM Limitations
1. QSPM requires intuitive judgment and based assumptions.
2. Discussions among strategists, managers and employees throughout the
strategy formulation process are "constructive" to improve the quality of strategic
decisions.
3. QSPM will only be good and useful as long as the prerequisite information
and matching analysis is the basis.

Chapter III
Conclusion

The essence of strategy formulation is the assessment of whether an organization is

doing the right thing and how strategy formulation can be more effective in its
application.

Reference

Fred R. David. Chapter 6 Analysis Strategy Choice