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Cory Simek Email CorySimek@earthlink.net

Business Policies & Strategies
Webster University ~ BUSN 6200

GeoSoft
Geosoft is an educational & entertainment software firm with a focus on
developing markets. Our initial market will be Vietnam.

The purpose of this case is to illustrate the application of Strategic Management

concepts covered during our course. Students should work with the spreadsheet
to develop a personal understanding of the process.

The spreadsheet can also be used as a real strategic planning & analysis tool
for our course and outside of the classroom as well. Just overtype all of the data
from my company GeoSoft with data for the company you are analyzing.

Page 1
 Answer Page 1

Insert Header
Enter the name of the case company here.

External Factor Evaluation or EFE Matrix

Opportunities
Enter up to 10 opportunity critical success factors here.
1
2

5
6

Threats
Enter up to 10 threat critical success factors here.
1

Enter a weighted score for each factor that ranges from 0.0 (not important) to 1.0 (all important).
They must sum to 1. The weight indicates the relative importance of that factor to being successful
in the firm's industry.

Page 2
 Answer Page 1

Enter opportunity weight here

1
2

5
6

Enter threat weight here

1

Total 0

Rate the effectiveness of the firm's current strategies to respond to each factor from 1 to 4. Where
4 = superior, 3 = above average, 2 = average, 1 = poor.

Enter opportunity rate here

1
2

5
6
0

Enter threat rate here

1

4
0

Page 3
 Answer Page 1

Now click on the Tools menu and run the EFECleanup macro.
If you add or remove factors later, you MUST DO THIS AGAIN to have them appear on the matrix!

CPM or Competitive Profile Matrix

Enter a weighted score for each factor that ranges from 0.0 (not important) to 1.0 (all important).
They must sum to 1. The weight indicates the relative importance of that factor to being successful
in the firm's industry.

Market Share 1
Management 2
Financial Position 4
Product Quality 5
Consumer Loyalty 2

14.00

Enter the name for the first competitor. 3

Enter the name for the second competitor. 4

Rate the effectiveness of the firm's current strategies to respond to each factor from 1 to 4. Where
4 = superior, 3 = above average, 2 = average, 1 = poor.

Market Share 1
Management 4
Financial Position 3
Product Quality 4
Consumer Loyalty 5

Rate the effectiveness of the firm's current strategies to respond to each factor from 1 to 4. Where
4 = superior, 3 = above average, 2 = average, 1 = poor.

Page 4
 Answer Page 1

Market Share 4
Management 4
Financial Position 3
Product Quality 3
Consumer Loyalty 2

Rate the effectiveness of the firm's current strategies to respond to each factor from 1 to 4. Where
4 = superior, 3 = above average, 2 = average, 1 = poor.

Market Share 4
Management 3
Financial Position 2
Product Quality 1
Consumer Loyalty 3

Internal Factor Evaluation or IFE Matrix

Strengths

Enter up to 10 internal strength critical success factors here.

1 aaaaaa
2 dddd
3 ggg
4 tttt
5 rrr
6 tttt

Debilidades

Introduzca hasta 10 puntos dbiles internos factores crticos de xito

aqu

Page 5
 Answer Page 1

Introduzca una puntuacin ponderada para cada factor que oscile entre 0,0 (no importante) y 1,0 (todo importante).
Introduzca una puntuacin para cada factor que oscile entre 0,0 (no importante) y 1,0 (todo importante).

Introduzca el peso de la fuerza aqu

1 aaaaaa
2 dddd
3 ggg
4 tttt
5 rrr
6 tttt

Introduzca el peso de debilidad aqu

1

Total 0

Asigne una calificacin de 1 a 4 a cada factor para indicar si ese factor representa una debilidad importante (calificacin = 1),
Una debilidad menor (calificacin = 2), una fuerza menor (calificacin = 3), o una fuerza mayor (calificacin = 4).

Page 6
 Answer Page 1

Ingrese la tasa de fuerza aqu.

1 aaaaaa
2 dddd
3 ggg
4 tttt
5 rrr
6 tttt

Introduzca la tasa de debilidad aqu.

1

Ahora haga clic en el men Herramientas y ejecute la macro IFECleanup.

Si agrega o elimina factores ms adelante, DEBE hacerlo de nuevo para que aparezcan en la matriz!

Page 7
 Answer Page 1

Please do not alter this column.

Empty?
1
1
1
1
1
1
1
1
1
1

1
1
1
1
1
1
1
1
1
1

Page 8
 Answer Page 1

y weight here
1
1
1
1
1
1
1
1
1
1

1
1
1
1
1
1
1
1
1
1

1
1
1
1
1
1
1
1
1
1

1
1
1
1
1
1

Page 9
 Answer Page 1

1
1
1
1

0
0
0
0
0

0
0
0
0
0

Page 10
 Answer Page 1

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0
0
1
1
1
1

1
1
1

Page 11
 Answer Page 1

1
1
1
1
1
1
1

todo importante).

so de la fuerza aqu
1
1
1
1
1
1
1
1
1
1
so de debilidad aqu
1
1
1
1
1
1
1
1
1
1

mportante (calificacin = 1),

lificacin = 4).

Page 12
 Answer Page 1

de fuerza aqu.
1
1
1
1
1
1
1
1
1
1
sa de debilidad aqu.
1
1
1
1
1
1
1
1
1
1

Page 13
 Answer Page 2

TOWS or SWOT for

Using the middle column for data entry, devise strategies for the different factors.

Strengths S-O Strategies

Use strengths to take advantage of

opportunities

1 aaaaaa 1
2 dddd
3 ggg 1
4 tttt
5 rrr 3
6 tttt

Weaknesses W-O Strategies

Overcome weaknesses by taking

advantage of opportunities

1 1

1
2

Strengths S-T Strategies

Use strengths to avoid threats

Page 14
 Answer Page 2

1 aaaaaa 1 1
2 dddd
3 ggg
4 tttt
5 rrr
6 tttt

Weaknesses W-T Strategies

Minimize weaknesses and avoid threats

1 1 1
2

Now click on the Tools menu and run the TOWSCleanup macro.
If you add or remove factors later, you MUST DO THIS AGAIN to have them appear on the matrix!

SPACE MATRIX FOR

Internal Strategic Position

Financial Strength +1 +1 Worst +6 Best
Competitive Advantage -4 -6 Worst -1 Best

Page 15
 Answer Page 2

External Strategic Position

Environmental Stability -5 -6 Worst -1 Best
Industry Strength +6 +1 Worst +6 Best

x-axis: 6 + -4 = 2
y-axis: 1 + -5 = -4

Grand Matrix for

Click on these. If you think has a strong competitive position, click that box.
If you think is in an industry characterized by rapid market growth, click that box.

Now click on Answer Page 3 to continue.

Page 16
 Answer Page 2

Opportunities Empty?

1
1
1
1
1
1
1
1
1
1

Opportunities

1
1
1
1
1
1
1
1
1
1

Threats

Page 17
 Answer Page 2

1
1
1
1
1
1
1
1
1
1

Threats

1
1
1
1
1
1
1
1
1
1

n the matrix!

Page 18
Answer Page 2

+2
-4

Page 19
 Answer Page 3

Summary

Now click on the Tools menu and run the SummaryCleanup macro.
If you add or remove factors later, you MUST DO THIS AGAIN to have them appear on the matrix!

Click on the Summary tab at the bottom of the screen. This is where you decide what strategies you
want to place in the QSPM for further analysis.

Study the strategies you have developed in the TOWS. Also study the summary of the matrix analysis.
Devise possible alternative strategies from the summary page that you would like to test in the QSPM.

Enter two alternative strategies below.

QSPM

Strategy one Develop edutainment software for the market.

Strategy two Partner with an established publisher.

Now click on the tools menu and run the AnswerCleanup macro.
This macro cleans up this page so that the two strategies are visible in the titles.

Attractiveness Scores

Attractiveness scores are determined by each external factor, one at a time and asking the question,
"Does this factor affect the choice of strategies being made? If the answer to this question is yes,
then the strategies should be compared relative to that key factor. Specifically, Attractiveness Scores
should be assigned to each strategy to indicate the relative attractiveness of one strategy over others,
considering the particular factor. The range for Attractiveness Scores is 1 = not attractive,
2= somewhat attractive, 3 = reasonably attractive, and 4 = highly attractive. If the answer to the
above question is NO, indicating that the respective critical success factor has no effect upon the
specific choice being made, then do not assign Attractiveness Scores to the strategies in that set.

Develop
edutainment
software for the
market.
Strength
1 aaaaaa 4
2 dddd 3
3 ggg 3
4 tttt 2
5 ggg 3
6 tttt

Page 20
 Answer Page 3

Develop
edutainment
software for the
market.
Weaknesses
1 2
2
3
2
1

Develop
edutainment
software for the
market.
Opportunities
1 3
4
4
3
2

Develop
edutainment
software for the
market.
Threats
1 2
2
1

Page 21
 Answer Page 3

2
2

Now click on the Tools menu and run the QSPMCleanup macro.
If you add or remove factors later, you MUST DO THIS AGAIN to have them appear on the matrix!

This is the end of the data entry portion.

Now you can study the results of your work via the following spreadsheet tabs:

o Audits o SPACE
o EFE o GRAND
o CPM o IE
o IFE o Summary
o TOWS o QSPM

Page 22
 Answer Page 3

pear on the matrix!

e what strategies you

y of the matrix analysis.

ke to test in the QSPM.

d asking the question,

is question is yes,
Attractiveness Scores
e strategy over others,

he answer to the
no effect upon the
ategies in that set.

Partner with an
established
publisher.

3
4
3
2
2

Page 23
 Answer Page 3

Partner with an
established
publisher.

4
4
3
2
3

Partner with an
established
publisher.

3
3
3
3
2

Partner with an
established
publisher.

3
3
2

Page 24
 Answer Page 3

2
2

pear on the matrix!

Page 25
 Audits

External Audit

Opportunities

Threats

Internal Audit

Strengths

Weaknesses

Page 26
Audits

0
0
0
0
0
0
0
0
0
0
0
0
0

Page 27
 EFE

EFE MATRIX FOR

Weighted
Critical Success Factors Weight Rating Score
Opportunities
0 0 0.00
Threats
TOTAL 0.00 0.00

Page 28
 EFE

1
0

Page 29
 0 3 4

Critical Weighted Weighted Weighted

Success Factors Weight Rating Score Rating Score Rating Score

Market Share 1.00 1 1.00 4 4.00 4 4.00

Management 2.00 4 8.00 4 8.00 3 6.00
Financial Position 4.00 3 12.00 3 12.00 2 8.00
Product Quality 5.00 4 20.00 3 15.00 1 5.00
Consumer Loyalty 2.00 5 10.00 2 4.00 3 6.00

Total 14.00 51.00 43.00 29.00

 IFE

IFE MATRIX FOR

Weighted
Critical Success Factors Weight Rating Score
Strengths
aaaaaa 0 0 0.00
Weaknesses
TOTAL 0.00 0.00

Page 31
 IFE

0
0

Page 32
 SWOT or TOWS Matrix for

Strengths Weaknesses Empty?

1 aaaaaa 1 0
2 dddd 0
3 ggg 0
4 tttt 0
5 rrr 0
6 tttt 0
1
1
1
Opportunities S-O Strategies W-O Strategies 0
1 1 1
2 1
3 1
1
Threats S-T Strategies W-T Strategies 0
1 1 1 1
2 1
1
1
 Strategic Position & Action Evaluation or SPACE Matrix for

Conservative FS Aggressive

+6

+5

+4

+3

+2

+1

CA +0
-6 -5 -4 -3 -2 -1 +0 +1 +2 +3 +4 +5 +6
-1

-2

-3

-4

-5

-6

Defensive ES Competitive

A firm in the Competitive quadrant indicates a firm that has competitive advantages in a
high-growth or unstable industry. Competitive strategies include backward, forward and
horizontal integration, market penetration, market development, product development,
and joint venture.
0
 X>0 1
X<0 0
Y>0 0
Y<0 1

Aggressive 0
Conservative 0
Defensive 0
Competitive 1
IS On X or Yaxis 0

antages in a
forward and
velopment,
 GRAND

Grand Strategy Matrix for

RAPID MARKET
GROWTH

Quadrant II Quadrant I

WEAK
COMPETITIVE STRONG
POSITION COMPETITIVE
POSITION

Quadrant III Quadrant IV

SLOW MARKET
GROWTH

1. Market development
2. Market penetration
3. Product development
4. Horizontal integration
5. Divestiture
6. Liquidation
0

Page 36
 GRAND

Rapid Market Growth 1

Strong Competitive Position 0

Quadrant I 0
Quadrant II 1
Quadrant III 0
Quadrant IV 0

MPETITIVE

Page 37
 IE

The Internal & External (IE) Matrix

The IFE Total Weighted Score

Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
High I II III
3.0 to 3.99

Medium IV V VI
The EFE 2.0 to 2.99
Total
Weighted
Score
Low VII VIII IX
1.0 to 1.99

HARVEST OR DIVEST

Page 38
 IE

INTERNAL 0 3.5

I 0
II 0
III 0
IV 0
V 0

VI 0
VII 0

VIII 0
IX 1

Rapid Market Growth 1

Strong Competitive Position 1

Quadrant I 0
Quadrant II 1
Quadrant III 0
Quadrant IV 0

Page 39
 Summary

Matrix Analysis and TOWS Summary

Alternative Strategies IE SPACE GRAND COUNT

Forward Integration X 1
Backward Integration X 1
Horizontal Integration X X 2
Market Penetration X X 2
Market Development X X 2
Product Development X X 2
Concentric Diversification - 0
Conglomerate Diversification - 0
Horizontal Diversification - 0
Joint Venture - X 1
Retrenchment X 1
Divestiture X X 2
Liquidation X X 2

SO #VALUE!

ST

WT

Page 40
 Summary

###
1
1
1
0
1
1
0
1
1
0
1
1

Page 41
 QSPM

Quantitative Strategic Planning Matrix for

Strategic Alternatives

Develop edutainment Partner with an

software for the established
Critical Success Factors Weight market. publisher.
Strengths AS TAS AS TAS
aaaaaa 0.00 4.00 ---- 3.00 ----
dddd 0.00 3.00 ---- 4.00 ----
tttt 0.00 2.00 ---- 2.00 ----
ggg 0.00 3.00 ---- 2.00 ----
tttt 0.00 ---- ---- ---- ----
Weaknesses
0.00 2.00 ---- 4.00 ----
0.00 2.00 ---- 4.00 ----
0.00 3.00 ---- 3.00 ----
0.00 2.00 ---- 2.00 ----
0.00 1.00 ---- 3.00 ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
0.00 ---- ---- ---- ----
SUBTOTAL 0.00 0.00 0.00

Develop
edutainment Partner with an
software for the established
Critical Success Factors Weight market. publisher.
Opportunities AS TAS AS TAS
0.00 3.00 ---- 3.00 ----
0.00 4.00 ---- 3.00 ----
0.00 4.00 ---- 3.00 ----
0.00 3.00 ---- 3.00 ----
0.00 2.00 ---- 2.00 ----
0.00 ---- ---- ---- ----
Threats
0.00 2.00 ---- 3.00 ----
0.00 2.00 ---- 3.00 ----
0.00 1.00 ---- 2.00 ----

Page 42
 QSPM

0.00 2.00 ---- 2.00 ----

SUBTOTAL 0.00 0.00 0.00
SUM TOTAL ATTRACTIVENESS SCORE 0.00 0.00

Page 43
 QSPM

Empty?
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
0
0

0
0
1
1
1
1
1
1
0
1
1
1

Page 44
 QSPM

Page 45
 HOLD VARIABLES

This page is not used in your analysis. The page is used for spreadsheet management & operations.

GRAND
Q1 Q2 Q3

1. Market development 1. Market development 1. Retrenchment

2. Market penetration
3. Product development
4. Forward integration
5. Backward integration
6. Horizontal integration
7. Concentric diversification
2. Market penetration 2. Concentric diversification
3. Product development 3. Horizontal diversification
4. Horizontal integration 4. Conglomerate diversification
5. Divestiture 5. Divestiture
6. Liquidation 6. Liquidation

SPACE

Aggressive Conservative Defensive

A firm in the Aggressive quadrA firm in the Conservativ A firm in the Defensive quadran
external opportunities, (2) o and not taking excessive external threats. Defense strate
market penetration, market d penetration, market develconcentric diversification.
integration, horizontal integration, conglomerate diversification, concentric diversification
diversification, or a combination strategy can all be feasible.

Page 46
 HOLD VARIABLES

heet management & operations.

Q4

1. Concentric diversification
2. Horizontal diversification
3. Conglomerate diversification
4. Joint ventures

Competitive On X or Yaxis
A firm in the Competitive quadrant indicates a firm that has competitive advantages in a
high-growth or unstable industry. Competitive strategies include backward, forward and
horizontal integration, market penetration, market development, product development,
and joint venture.

Page 47