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Running head: STRATEGY ANALYSIS AND SITUATIONAL ANALYSIS 0

Strategy Analysis and Situational Analysis

Name: Kellian Bailey

Professor: Stephen Katz

Due Date: March 10, 2021

Strategy Analysis and Situational Analysis

Directional strategies both part of the situational analysis and part of strategy formulation

The direction strategies provide the fundamental direction of the organization. The directional strategies include mission, vision, values, and goals. In a situational analysis, directional describes the current state of the organization and classify its basic beliefs and philosophy (Ginter, Duncan, & Swayne, 2018). Still, directional strategies are part of the strategy formulation because they help set the direction for the organization. Directional strategies are important in situational analysis and strategy formulation as it helps the organization defines what the organization stands for and what the firm hope to achieve.

Strategy formulation related to the situational analysis

Strategy formulation and situational analysis relate in this way, first, situation analysis provides information on external and internal environment of the firm. This information is needed in the strategy formulation to develop strategic alternatives and select the strategies for the organization (Ginter, Duncan, & Swayne, 2018). External environmental factors include threats and opportunities that organizations need to consider before implementing a strategy. Internal environmental factors include strengths and weaknesses. The strategies developed should focus on addressing the threat, leveraging on available opportunities, and fixing weakness to ensure the organization is within mission parameters, move forward toward achieving its mission statement, and later fulfill the organization's goals.

Expansion, reduction, and maintenance of scope strategies

The expansion strategy includes related diversification and it involves adding new related products or services categories. The second expansion strategy includes unrelated diversification which entails adding new unrelated products. The third expansion strategy is the forward vertical and it entails the addition of the new member along the distribution channel for present products and services (Ginter, Duncan, & Swayne, 2018). Product development entails improving the present product of services or extending the present product line. Product penetration focuses on increasing the market share for the present product or services in the present market by employing marketing efforts such as promotion, channel, and price.

The contraction strategies include divestiture. This strategy focuses on selling an operating business unit to another organization. Liquidation entails selling all or part of the organization's assets to generate cash. Harvesting strategy entails providing fewer resources for new business in declining markets. Retrenchment strategy entails reducing the scope of operation by defining the target market ad cutting down personnel, product, or services.

Maintenance strategy has a measure that is enhancement and status quo (Ginter, Duncan, & Swayne, 2018). Enhancement entails strategy of improving operation within present product or services via quality program while status quo focus on marinating position relative to others within a market.

Reference

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Strategic management of health care organizations. Hoboken, New Jersey: Wiley, [2018], Eight Edition