Author(s)

Yang Lijie

Corresponding Author

Yang Lijie

Abstract

This study aims to build a more workable strategy-formulation framework by improving the comprehensive framework in David’s (2016) textbook Strategic Management Concepts[1]. This new framework, containing 5 steps namely determining internal and external key factors (IEKF), generating strategies by matching internal and external key factors in a SWOT Matrix (SWOTM), determining of the corporate level strategy by combining IFE, EFE and SWOT (IES), Hierarchically clustering strategies (HCS), and evaluating strategies by using QSPM, could be more workable for the three contributions: first, determining corporate strategy by combining usage of IFE, EFE and SWOT; second, modifying the rule for assigning ratings in EFE in the step when using SWOT to determine corporate strategy; three, strategies are hierarchically clustered and evaluated in three levels, i.e. corporate strategy, competitive strategy, and functional strategy, respectively. No real data for application is the limitation of the study.

Keywords

Strategy-formulation framework; SWOT matrix; EFE; IFE; QSPM