Strategy

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EXECUTIVE SUMMARY

This report pertains to the strategic analysis of Purnamaa Printshop Enterprise which provides printing services in Dengkil. The strategic analysis was carried out in accordance with the Strategy Formulation Framework which was developed by Fred David. The strategic formulation framework encompasses three primary stages which comprises of the input stage, the matching stage and the decision stage. The report contains seven chapters and the first chapter is the introduction where each chapter of the report is described briefly. The second chapter describes the Strategy Formulation Framework. The descriptions in this chapter are general in nature and include the vision and mission, environment of the organization, the stages in the strategy formulation framework and the types of strategies. Chapter Three introduces the organization and provides factual information regarding the internal and external environment. Chapter four highlights the input stage of the strategy formulation framework. The Internal Factor Evaluation Matrix, External Factor Evaluation Matrix and Competitive Profile Matrix of the organization are developed in this chapter. Chapter five is regarding the matching stage where feasible strategic alternatives are developed and analysed based on tools such as SWOT matrix, SPACE matrix, Boston Consulting Group matrix, Internal-External Matrix and Grand Strategy Matrix. Chapter six consists of the decision stage which is the last stage of the strategy formulation framework. The Quantitative Strategic Planning Matrix (QSPM) tool is used to objectively evaluate between feasible alternative strategies and reveal the best strategy to pursue. The final chapter seven provides recommendations based on the strategic analysis performed on Purnamaa Printshop Enterprise.

Table of Contents

List of Tables and Figures

Chapter 1: INTRODUCTION

This chapter will provide an introduction to the strategic analysis which was carried performed for Purnama Printshop Enterprise. This strategic analysis is performed to develop a set of strategic options so that the organization may be able to follow through with the most appropriate strategy for it to achieve competitive advantage.

The framework to be used for this analysis is the Strategic Formulation Framework created by Fred R. David which is discussed in Chapter two .The strategic formulation framework helps to generate feasible strategy alternatives, evaluate those alternatives, and choose specific course of action. Strategy formulation framework comprises of three stages which has a total of ten tools that can be employed to lead an organization to identify a set of strategic alternatives for it to follow through. Strategic formulation framework involves three stages; The Input Stage, The Matching Stage, and The Decision Stage where the ten tools are Internal Factor Evaluation (EFE) Matrix, External Factor Evaluation (EFE) Matrix, Competitive Profile Matrix (CPM) Matrix, Strength-Weaknesses-Opportunities-Threats (SWOT) Matrix, Strategic Position and Action Evaluation (SPACE) Matrix, Boston Consulting Group (BCG) Matrix, Internal-External (IE) Matrix, Grand Strategy Matrix, Quantitative Strategic Planning Matrix (QSPM) and Porter’s 5 Forces Model.

Chapter three introduces the organization and discusses its external and internal environment. In order to successfully use the Strategic Formulation Framework it is vital to have a proper understanding of the internal and external environments of the organization. The internal and external environments of the organization can be understood through the following elements; Internal environments consist of resources, capabilities and core competencies while the External environment consist of demographic, economic, political, legal, sociocultural,...
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