3. CHOICES & TYPES OF STRATEGIES

18. Michael Porter’s Generic Strategies Target Market

22. ANALYTICAL TOOLS FOR STRATEGIC DIRECTION-SETTING

24. SAMPLE SWOT STRENGTHS--S 1. Good editorial quality. 2. High readership ratings. 3. Market leadership. 4. Strong staff loyalty. 5. United Board of Directors OPPORTUNITIES—O 1. Better relations with government. 2. The youth market 3. The lower income markets. 4. Better newspaper technology. 5. Digital advertising. SO STRATEGIES 1. Introduce a new product for the youth market (S1, S2, S3,O1,O2) 2. Introduce a new product for the lower income market (S1,S2,S3, O1,O3) 3. Offer digital advertising services (S3, O4, O5). THREATS--T 1. Television. 2. High newsprint costs. 3. Declining readership. 4. Slowdown in the economy. 5. Internet and on-line publications. ST STRATEGIES 1. Introduce a free print medium. (S1,S2,S3, T1,T4) 2. Introduce a youth website. (S1,S3,T1,T5) WT STRATEGIES 1. Set up regional printing sites (W1, T2). 2. Merge non-revenue earning classifieds products into the main classifieds (W2,T2). WO STRATEGIES 1. Develop a readership program involving employees (W3,W4,O2,O3). 2. Convert non-revenue earning products into a youth publication (W1,W2, O2). WEAKNESSES—W 1. Profit margin squeeze. 2. No. 2 in classifieds. 3. Lack of a shared culture. 4. Complacency. 5. Lack of entrepreneurial spirit

25. Space Matrix Internal Strategic Position y-axis=fs + es IFE EFE

26. Space Matrix Example CPM External Strategic Position x-axis=ca + is 5 Forces

27. SPACE MATRIX Industry Strength -6 -5 -4 -3 -2 -1 Conservative Defensive Competitive Aggressive +1+2+3+4+5+6 +6 +5 +4 +3 +2 +1 -2 -3 -4 -5 -6 (+4.6, -3.2) External Strategic Position x-axis=ca(-1.0)+is(5.6)= +4.6 Internal Strategic Position y-axis=es(-5.2)+fs(2.0)= -3.2 The Company is competing fairly well in an unstable environment Financial Strength Environmental Stability Competitive Advantage

32. SAMPLE INTERNAL-EXTERNAL (IE) MATRIX I IV VII II VIII IX VI III V AVERAGE 2.0-2.99 WEAK 1.0-1.99 STRONG 3.0-4.0 MEDIUM 2.0-2.99 LOW 1.0-1.99 HIGH 3.0-4.0 Intensive Integrative TOTAL IFE WEIGHTED SCORE= 3.2 TOTAL EFE WEIGHTED SCORE = 3.0 ABC

34. STRATEGIES SUMMARY STRATEGY OPTIONS TOWS SPACE IEM GSM TOTAL INTEGRATION STRATEGIES 1 Forward Integration 1 1 2 2 Backward Integration 1 1 2 3 Horizontal Integration 1 1 2 INTENSIVE STRATEGIES 0 4 Market Penetration 1 1 1 1 4 5 Market Development 1 1 1 3 6 Product Development 1 1 1 3 DIVERSIFICATION STRATEGIES 0 7 Concentric Diversification 1 1 2 8 Conglomerate Diversification 1 1 9 Horizontal Diversification 1 1 DEFENSIVE STRATEGIES 0 10 Joint Venture 0 11 Retrenchment 0 12 Divestiture 0 13 Liquidation 0

37. SAMPLE QSP MATRIX (QSPM)

38. SETTING OF STRATEGIC OBJECTIVES