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Using the results of the previously completed External Scan/Audit and the Internal Scan/Audit you will now proceed to determine the direction of the firm for the foreseeable future. This will entail developing corporate strategies, business strategies, functional strategies or any combination of the three. The following are guidelines to complete Strategy Formulation.
1. Developing a TOWS MATRIX – Please refer to pages 182-183 in the text. (Text Book – Concepts in strategic Management and business Policy by Thomas L. Wheelen and J. David Hunger – 13th Edition ISBN # 978-0-13-215335-5
Based on the information developed in the External Scan(Opportunities and Threats) and the Internal Scan(Strengths and Weaknesses) develop a TOWS Matrix according to the format on page 182. An example of a completed matrix can be found on page 185 in the text. Once you have completed the matrix you will have a full range of alternative strategies for your firm to pursue.
2. Corporate and Business Strategies –Corporate strategies set the overall direction of the firm. Business strategies are the means to achieve Corporate strategies.
Based on the information in the case and your own analysis both the current and future corporate and business strategies will be determined.
3. Strategic Choice – Selecting the strategies from the TOWS Matrix.
Based on the information collected in sections 1 and 2 above, select from the alternatives developed in the TOWS Matrix those strategies which best contribute to achieving the firm’s business strategies which in turn will contribute to achieving the firm’s corporate strategies.
This information can be presented in a format consisting of headings, bullet points and descriptive paragraphs. It should be long enough to be complete, thorough and comprehensive.
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