1. Provide a list with internal and external factors: strengths and weaknesses can be
compiled from the IFE Matrix. Opportunities and threats are taken from the EFE
Matrix.
2. Identify strategic alternatives: strategic alternatives are taken from the TOWS
analysis.
3. Assign weights: weights are assigned to key internal and external factors. Those
weights are taken from the IFE and EFE matrices.
4. Assign attractiveness scores: attractiveness scores are assigned based on whether
the factor makes a difference in the decision about which strategy to pursue. If the
answer is “yes”, then the score of 1 = not attractive, 2 = somewhat attractive, 3 =
reasonably attractive, and 4 = highly attractive. If the answer is “no”, the score will be
0.
5. Calculate total attractiveness score: multiply the weights with the attractiveness
scores and sum up the products.
The strategic alternative with the biggest total attractiveness score portrays the most
attractive strategy for the company.
GRAND STRATEGY MATRIX
The Grand Strategy Matrix was applied to develop strategies for Starbucks’ different
business units. Product categories are allotted to four different quadrants according to their
competitive position and market growth. From each quadrant, different strategies can be
chosen:9
1. Quadrant I: product categories with a strong competitive position and rapid market
growth.
2. Quadrant II: product categories with a weak competitive position but rapid market
growth.
3. Quadrant III: product categories with a weak competitive position and slow market
growth.
4. Quadrant IV: product categories with a strong competitive position but slow market
growth
1. Provide a list with internal and external factors: strengths and weaknesses can becompiled from the IFE Matrix. Opportunities and threats are taken from the EFEMatrix.2. Identify strategic alternatives: strategic alternatives are taken from the TOWSanalysis.3. Assign weights: weights are assigned to key internal and external factors. Thoseweights are taken from the IFE and EFE matrices.4. Assign attractiveness scores: attractiveness scores are assigned based on whetherthe factor makes a difference in the decision about which strategy to pursue. If theanswer is “yes”, then the score of 1 = not attractive, 2 = somewhat attractive, 3 =reasonably attractive, and 4 = highly attractive. If the answer is “no”, the score will be0.5. Calculate total attractiveness score: multiply the weights with the attractivenessscores and sum up the products.The strategic alternative with the biggest total attractiveness score portrays the mostattractive strategy for the company.GRAND STRATEGY MATRIXThe Grand Strategy Matrix was applied to develop strategies for Starbucks’ differentbusiness units. Product categories are allotted to four different quadrants according to theircompetitive position and market growth. From each quadrant, different strategies can bechosen:91. Quadrant I: product categories with a strong competitive position and rapid marketgrowth.2. Quadrant II: product categories with a weak competitive position but rapid marketgrowth.3. Quadrant III: product categories with a weak competitive position and slow marketgrowth.4. Quadrant IV: product categories with a strong competitive position but slow marketgrowth
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