NOTE REGARDING TOOLBOX EXERCISES – These exercises are meant to be cumulative in nature. Each week we will perform an exercise that will serve as the foundation for your Strategic Plan and Final Presentation. Your frame of reference for these exercises should be the shoe company you manage on the Business Simulation Game.
A Strategic Decision Matrix is used to facilitate decisions regarding which strategies to choose and prioritize. This is a very important exercise that many organizations forget while creating strategies. The net effect is that strategies are selected that are “pet projects” or “flavors of the month.”
· Using the Internal Factor Evaluation Matrix and the External Factor Evaluation Matrix previously completed, list the key external opportunities/threats and internal strengths/weaknesses in the left hand column of the matrix. Also transfer the weights associated with each item onto this matrix.
· List two alternative strategies the organization is considering at the top, right columns of the matrix.
· Using group discussion, determine an attractiveness score (AS) for each strategy and each IFE/EFE element. This score is determined by asking “how well does this strategy address this item?” and assigning a score of 1 to 4, where 1 = not attractive, 2 = somewhat attractive, 3 = reasonably attractive, and 4 = very attractive. Work row by row in scoring the matrix. Please note that some possible strategies will not address every particular IFE/EFE item, and a dash should be inserted in those cases.
· Calculate a total attractiveness score for each strategy by multiplying the weight by the attractiveness score for each strategy by multiplying the weight by the attractiveness score and summing.
· Repeat with two more strategies until all strategies under serious consideration are scored.
· Compare the scores of the possible strategies. Strategies receiving the highest score should warrant the most consideration or priority. Please see the following abbreviated example.
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