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MGT680Unit5GPSWOTandStrategyupd_1.pptExplanations and examples for conducting SWOT analysis and proposing strategies.
SWOT Analysis and Strategic Proposals
This SWOT and Strategy file (SASF) presents guidance, specification, explanation and examples for conducting SWOT analyses and developing strategies. The contents are divided into two sections:
I—SWOT Analysis
II—Strategy Proposal
PLEASE NOTE: There are two Common Mistakes sections, one for SWOT and one for Strategy. Read both carefully, do not make those mistakes.
I—SWOT Analysis
SWOT analysis is an important management tool. It improves knowledge and awareness of your environment—internal and external—thus enabling informed strategic decisions. You can perform a SWOT analysis on any entity—a firm, an industry, a department within a firm, a person, yourself, your marriage; any entity.
SWOT FACTORS
A SWOT factor is any issue, tangible or intangible, which may affect the subject entity of your analysis. In practice, strategists identify as many factors within each of the four SWOT categories—Strengths, Weaknesses, Opportunities or Threats—as possible. A thorough analysis will reveal many factors for each SWOT category. An analysis which reveals only 2, 3 or even 4 factors for each category is insufficient effort and cannot earn a good grade. Take the time to thoroughly assess the firm in question, list all the factors you find, then fully explain why each factor is important and why you placed it in the SWOT category you did. Five factors for each SWOT category is the minimum—a student must identify more than five valid factors for each category to earn best grades.
FACTOR EXPLANATIONS
It is imperative for your analysis to fully explain the factors you present. Your explanation should tell us why the factor is considered important and why you placed it in the category you did? The explanations should be in essay form and include any factor-related information you possess and your rationale for selecting that factor in your SWOT. The better you describe the factors, the more information and understandability your analysis provides to decision-makers. Brief, vague, or generic factor explanations cannot earn a good grade.
SWOT—Rules of Thumb
In practice, management often establishes decision points for segregating categories of factors—placing the factors in the correct category: S, W, O, or T. For some firms, these decision points are the result of complicated algorithms based on a variety of issues—including functionality, synergy, trends, forecasts, best estimates, etc. However, many firms set basic decision points, called rules-of-thumb. I offer two common rules-of-thumb, Control and Benefit, to help you select the proper category for your factor.
Rule-of-Thumb 1: Control
If the entity being analyzed has significant CONTROL over the factor being considered, then that factor is internal. If the entity has little or no control over the factor, it is external. For example, a firm’s product line is considered internal because the firm has control over its own products/services. Conversely, taxes for which a firm must account are considered external because the firm has little or no control over taxes—taxes are levied by governments. Therefore, a firm’s products are considered either a firm’s internal strengths or weaknesses and taxes are either external opportunities or threats. The question, which one are they?
Rule-of-Thumb 2: Benefit
If the factor being considered is a BENEFIT to the firm—is good for it—then it is either a strength or an opportunity. However, if the factor does not benefit the firm—is bad for it—then it is either a weakness or a threat. Which one depends upon the other rule of thumb, control. For example, if the firm’s products—remember, a firm’s products are considered internal—are poor quality, or are bested by competitor products, and do not hold good market share; they do not benefit the firm and can be considered weaknesses. Products which are good quality and hold significant market share can be considered strengths. Conversely, taxes—remember, the taxes for which a firm must account are considered external—on which governments offer subsidies or waivers to the firm are opportunities; while taxes levied against a firm may be considered threats. Remember, the fictitious firm from the unit 1 IP, is located in Tennessee. Tennessee, like many other autonomous areas, provides opportunities, or incentives, in the form of tax breaks, infrastructure improvements, regulation abeyance, etc., to encourage firms to locate in their areas.
Gray Areas
Some factors are difficult to assign. It depends upon several variables including the use and intent of the factor. Patents, for example, are regulated by the government. Therefore, using the rule-of-thumb logic above, you may see patents as external factors since the firm has little control over government regulation. However, patents are very different from usual government laws and regulations. Patents require significant input from the firm. The firm must develop the process or product being patented and must decide to seek a patent. In that light, the firm has significant control over the patent, its content and its existence.
Gray Areas
- Another example of a gray area is the high cost of labor. Based on the Control rule, labor cost is not internal to the firm being SWOT analyzed, it is an external factor. However, if you are devising rationale for relocating your firm, you could look at the high cost of labor as something the firm does control. The firm does control where it lives and could relocate elsewhere to areas of lower labor cost.
Gray Areas
- Therefore, patents, labor costs, and many other factors, can be gray-area factors which may be either internal or external, depending upon how the analyst views them and the situation in which they exist. Gray areas are another major reason why you need to fully explain why you selected the factor, why you think it’s important, why you placed it where you did, and how you intend to view it.
SWOT—COMMON MISTAKES
Loss of Time Frame
One of the common problems encountered when conducting a SWOT analysis is loss of time-frame. A SWOT factor must be current or future-oriented. A past weakness, one which has been resolved or simply no longer exists, is no longer a weakness. Similarly, an opportunity, past or taken advantage of, is no longer an opportunity. If it has been taken advantage of, the former opportunity is now internal to the firm and may now be a Strength or a Weakness. The same situation exists for Strengths and Threats. If the factor(s) no longer exist, they are no longer viable; therefore, they should not be part of your analysis. You should always research the subject of your SWOT to ensure current information—this is especially important when doing a SWOT from a case study—case data is usually a few years old. By researching current data from that firm and comparing it to the case time-frame data, the analyst may gain insight into the strategic moves the firm has made since the case was written.
SWOT—COMMON MISTAKES
Internal Opportunities
- Seeing the continued improvement of Strengths and/or the resolution of Weaknesses as Opportunities is another problem. Opportunities are not Internal.
- Opportunities are externally existing situations which the firm has yet to take advantage. Once taken advantage of by the firm, the Opportunity becomes internal; either a Strength or a Weakness.
SWOT—COMMON MISTAKES
Mixing Internal with External
Yet another more frequent mishap when conducting a SWOT analysis is mixing external factors with internal factors. Doing so can skew the results of your SWOT. Certainly, some factors can be argued to be either internal or external and some can be both, depending upon the situation, use, and intent. This is a major reason why a full explanation of each SWOT factor is required.
SWOT—COMMON MISTAKES
Duplicity of Factors
Each factor listed should cover a class, or type, of issue which is important to each category—Strengths, Weaknesses, Opportunities or Threats. For example, a firm’s successful products are considered Strengths. Listing more than one of a firm's successful products—e.g., Apple’s iPod, iPhone, iTunes, etc.—is still only one Strength factor, successful products. Simply listing all successful products does not cover a firm's Strengths. To develop successful products the firm must have other Strengths.
SWOT—COMMON MISTAKES
Duplicity of Factors—cont’d.
Similarly, listing more than one competing product, firm, or aspect of competition—e.g., Apple’s competitors like Sony, Motorola, Dell, HP, etc.; or competing products like MP3 players, smart phones, etc.; or aspects such as foreign competition, cloned products, Chinese imports, etc.—is only one Threat factor, competition. The same holds true for all categories. For example, listing every country where you could expand your markets, does not cover Opportunities, or listing every one of a firm's products which have malfunctions does not cover Weaknesses.
SWOT—COMMON MISTAKES
Multiple Points of View
Perspective is another equally important consideration which causes mistakes when developing a SWOT analysis. Factors identified for your firm may be seen differently if analyzed from another firm’s point of view. For example, a firm which possesses considerable global experience would see expansion into a new global area as an opportunity. However, another firm with little global experience may see the same expansion effort as a threat. Similarly, a firm with strengths in distribution systems may see things differently than firms with weaknesses in distribution. Consequently, you should maintain a constant perspective throughout your analysis.
SWOT—COMMON MISTAKES
Fiction versus Fact
- SWOT factors must be fact or you have created fiction. You cannot assume or presume factors.
- Factors must be based in fact—either stated in the assignments or supported by researched fact.
- The ‘expert’ strategist can and does draw logical conclusions based on research. However, be sure to realize, a logical conclusion is based on fact; whereas, an assumption is based on guesswork.
HINTS for your SWOT
- There are some basics which you may want to consider with SWOT analysis. Opportunities and Threats are external to the firm; thus, many external factors may be shared by all firms in the same industry. For example, all auto firms may share the same Threat of increased pollution control laws, or the same Opportunity of developing a new alternative fuel vehicle. All auto firms share similar safety laws and issues, similar customer desires, etc.
- If the firms are in the same industry, even some internal Strengths and Weaknesses may be similar—recall problems, customer service issues, the need to add that something extra to set your products ahead of the competition, etc.
- Do not simply research a SWOT of Apple, Ford, or Toyota and use their factors—you are supposed to develop the SWOT and factors.
REQUIRED SWOT FORMAT-1
When doing a SWOT analysis it is important to show all the factors you found and explain the rationale behind their selection. To do so, you need to provide: 1) the SWOT Category, 2) a key word, or phrase, which identifies the SWOT factor, and 3) an essay explanation for each SWOT factor. A full and complete explanation of each factor is very important. Each factor must be explained to enable any decision-maker reading your strategy to understand your logic of the factor’s importance and why you placed it in the category you did. A complete explanation of each factor also helps the strategist maintain perspective and frequently pinpoints any discrepancies in your analysis.
REQUIRED SWOT FORMAT-2
Strengths
Factor 1—use a key word, or phrase, that identifies the factor.
Then, fully explain in essay form why this factor is important and why you placed it in this category, how it affects the firm, and any other pertinent information you deem necessary to help further analysis and decision-making.
Factor 2 through Factor n: continue providing new factors keywords and their explanations until you have identified and explained at least five Strength factors.
Continue providing both key words and explanations of the several (at least five) factors selected for each remaining SWOT category—Weaknesses, Opportunities, and Threats.
REQUIRED SWOT FORMAT-3
- STRENGTHS
- Factor 1—keyword, then Full Essay Explanation
- Factor 2—keyword, then Full Essay Explanation
- Factor 3—keyword, then Full Essay Explanation
- Factor 4—keyword, then Full Essay Explanation
- Factor 5—keyword, then Full Essay Explanation
- WEAKNESSES
- Factor 1—keyword, then Full Essay Explanation
- Factor 2—keyword, then Full Essay Explanation
- Factor 3—keyword, then Full Essay Explanation
- Factor 4—keyword, then Full Essay Explanation
- Factor 5—keyword, then Full Essay Explanation
- OPPORTUNITIES
- Factor 1—keyword, then Full Essay Explanation
- Factor 2—keyword, then Full Essay Explanation
- Factor 3—keyword, then Full Essay Explanation
- Factor 4—keyword, then Full Essay Explanation
- Factor 5—keyword, then Full Essay Explanation
- THREATS
- Factor 1—keyword, then Full Essay Explanation
- Factor 2—keyword, then Full Essay Explanation
- Factor 3—keyword, then Full Essay Explanation
- Factor 4—keyword, then Full Essay Explanation
- Factor 5—keyword, then Full Essay Explanation
Do not be brief, tell us as much as you know about all the factors. Tell us why each of the factors is important, how you intend to use them, and why you placed them in this SWOT category.
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II—Strategy Proposal
A strategy is much more than a simple idea. A strategy proposal must provide three necessary elements: 1) an implementation plan—HOW you would implement your strategy, not just describe the problem or state the result desired, but identify the steps needed to achieve your strategic plan; 2) potential ramifications—you need to identify and fully explain several sets of both advantages and disadvantages which may result from the implementation of your strategy and the ramifications need to address both internal and external possibilities; and 3) evaluation feedback—you need to identify specific four-faceted evaluation feedback to determine the success or failure of your strategy.
Strategy Proposal-feedback
Feedback mechanisms must be both 1) proactive and 2) reactive, while feedback measures need be both 3) quantitative and 4) qualitative. Note that a mechanism is a vehicle for feedback, like financial reports or customer surveys; while a measure is a specific data element gathered by a mechanism, like ROI in financial statements or ease of use in customer surveys. Specific feedback mechanisms and measures must provide evaluative information throughout the entire implementation process (proactive mechanisms), not only after it is completed (reactive mechanisms). A firm needs to know the success or failure of their strategy all during its implementation in order to allow them to change direction to avoid failure or to achieve better success. A brief or casual response to a strategy will not earn a good grade in a strategy class.
Strategy Proposal-HOW
The description of HOW to implement your strategies need not be overly detailed, but should show your knowledge of business functions and your awareness of the necessary steps to employ your strategies. Since you are being assessed on your knowledge of business, you should do as complete an analysis as possible and identify all the steps YOU SEE to achieve your objectives..
Strategy Proposal-What If
- The potential ramifications are especially important in strategy. They show the conditional thinking required for a good strategy—IF I do this, THEN this may happen. The strategic analyst must be aware of the ramifications—the advantages and disadvantages from internal and external perspectives—of implementing her strategies. Consequently, identify as many ramifications as YOU SEE
Strategy Proposal-four facets
The third required element of your strategy is four-faceted evaluation. The specific feedback mechanisms and measures must consider four aspects, or facets: 1) proactive and 2) reactive mechanisms, and 3) qualitative and 4) quantitative measures. Simply counting beans—comparing production volume, sales or revenue, or the like—does not provide sufficient measurement. They are all numeric factors. You must also measure non-numeric factors, like product/service quality, ease of use, customer acceptance, distribution systems, etc. Additionally, reactive evaluation—assessing after-the-fact factors—such as product/service sales totals or dollar mounts, or customer acceptance of the product do not adequately evaluate your strategy. You must also be proactive in your measurement and evaluate your strategy as it progresses through its implementation in order to affect changes, if need be.
STRATEGY—COMMON MISTAKES
Identifying WHAT instead of HOW
The most common mistake made in strategy proposal is to provide the WHAT and not the HOW. For example, a novice strategist may simply say that a new innovative product should be developed—that is only ‘what’ you want to do. The first thing the manager will say is HOW do we develop it? So, a good strategist digs deeper and explains HOW to develop an innovative product from the start—think about it, HOW do you innovate?
STRATEGY—COMMON MISTAKES
Assuming innovation
- Another common mistake in strategy proposal is to assume the firm already has the marvelous product that can complete against the subject firm. You cannot assume you have a better product, you must tell us HOW to develop that better product.
STRATEGY—COMMON MISTAKES
Few Ramifications, Brief Feedback
- Another common mistake is to provide only one or a few pros and cons for the potential ramifications of following your plan. This is often accompanied by brief or no explanations—without full explanation, your ramifications may be misleading not realized. The strategist needs to go deep enough into her plan to see all the potential advantages and disadvantages which may result from following her plan. It would not be prudent to have planned the transfer of an automated factory to Saudi Arabia, if you missed the fact that your predominantly female work force was not allowed entry to the Islamic Kingdom. Consequently, strategic proposals with few ramifications and less than full explanations are not well-received. Do not be brief, vague or non-definitive.
STRATEGY—COMMON MISTAKES
No four-faceted feedback
- Yet another common mistake is to provide only one or a few feedback mechanisms or measures when you need specific proactive and reactive mechanisms (plural) and specific qualitative and quantitative measures (plural) to gather for evaluative feedback. Again, you are looking to satisfy the decision-makers with your strategic plan, to give them enough information to make an informed decision
STRATEGY—COMMON MISTAKES
Proposing Marketing Strategies
Another common error is the development of marketing strategies. Marketing is only part of business—and this is not a marketing class. Corporations have to be managed, factories have to be operated, products and services have to be developed, and many more business departments have to be involved before there is a product or service to be marketed. The strategic plans you develop for this class should be directed more toward the overall business of the firm, its business processes and the way it conducts business.
Strategy Common Mistakes
Duplicity of Strategies
- Duplicity of Strategies
- As in the SWOT Common Mistake, Duplicity of Factors, it is also a mistake to duplicate strategies. In the unit 5 GP assignment, you are required to develop three separate and unique strategies, one for each of the three time-frames; one, five and ten-year. Repeating the same strategy may be acceptable in practice, especially if it is in a different region of the world, but that is contrary to your assignment; we want you to work on three separate strategies.
STRATEGY—COMMON MISTAKES
Tactical plans or Procedures
Still another common problem when proposing strategies is using a standard procedure or a tactical plan. Tactical plans are subordinate to strategic plans. While the strategy looks at the big picture, the tactical plan looks at elements of the big picture. For example, if your strategy was for the firm to become more cost efficient, simply planning to cut some jobs in some divisions is not a strategy, it is a tactical plan. Cost efficiency entails much more than just cutting some jobs—of course, if your cost reduction efforts only entail cutting jobs, the firm most likely has a bigger problem. Another example: a plan to differentiate between consumer and professional tools by painting them different colors or changing packaging is a tactical plan not a strategic plan; or a plan to use forward foreign exchange contracts to hedge foreign currency exchange fluctuation is a standard procedure not a strategic plan.
STRATEGY—COMMON MISTAKES
Proactive feedback
All strategic evaluation needs both proactive and reactive mechanisms gathering qualitative and quantitative measures—four-faceted feedback. Proactive feedback can be thought of as a gauge to help you guide your strategy, and to assess the success of your strategy all during its implementation. Proactive feedback is necessarily gathered as early as possible and at the shortest intervals possible to allow a better sense of your strategy's worthiness. For example, if your implementation plan was to develop a new hi-tech product and it takes six months to complete your plan, there would be several important milestones along the way. There would be a mandatory date for staffing, for facilities, for raw material or component parts, for prototype development, for performance testing, etc. You would want to know if three months into the effort the facilities were no longer available. If you knew that ahead of time, you may be able to find other facilities and save the project.
STRATEGY—COMMON MISTAKES
Reactive feedback
Reactive feedback can be considered the 'proof' of the worth of the strategy. Obviously, the reactive elements are those issues you can resolve after the implementation is complete. The best practice is to develop a benchmark for important issues—sales, costs, capacities, quality, consumer preference, etc—under the old system, and when completed, compare those same important issues under the new system. This way, you have specific 'proof' of the worth of the strategy implemented.
STRATEGY FORMAT
Required For Every Strategy
State your strategy name (keyword/phrase) as a subsection, or section, label and provide a brief description. Under that label develop your three required sections; 1) implementation—tell how to (not just what to do) implement it, 2) ramifications—discuss all potential ramifications (several sets of pros/cons) of your strategy and 3) evaluation—describe the four-faceted (proactive, reactive, quantitative, and qualitative) specific feedback mechanisms (plural) and specific measures (plural) you suggest. For example:
STRATEGY FORMAT
Strategy Name—a keyword or phrase
Strategy Description—a brief explanation of the strategy
Implementation
This strategy can be implemented by . . . . . . . describe HOW you could accomplish your strategic objectives, identify as many business steps as you can which would be needed to achieve your plan, show me what YOU know of business.
Ramification
The ramifications of this strategy are . . . . . . . .identify several potential advantages (pros) and potential disadvantages (cons) which may result from following YOUR implementation plan.
Evaluation
To measure the success of this strategy . . . . . . . . . . identify four-faceted feedback—which includes 1) proactive and 2) reactive mechanisms as well as specific 3) qualitative and 4) quantitative measures to gather in those mechanisms—to enable management to assess the success or failure of the implementation.
Each strategy proposal should follow this format.
STRATEGY FORMAT
Ramification Layout
- Pro 1 key word, full explanation of the pro
- Pro 2 key word, full explanation of the pro
- . . . . .
- Pro n key word, full explanation of the pro
- Con 1 key word, full explanation of the con
- Con 2 key word, full explanation of the con
- . . . . .
- Con n key word, full explanation of the con
STRATEGY FORMAT
Evaluation
To measure the success of this strategy . . . . . . . . . . identify four-faceted feedback—which includes 1) proactive and 2) reactive mechanisms as well as specific 3) qualitative and 4) quantitative measures to gather in those mechanisms—to enable management to assess the success or failure of the implementation.
Each strategy proposal should follow this format.
STRATEGY FORMAT
- Proactive Mechanism 1 keyword, full explanation
- Qualitative Measure 1 keyword, full explanation
- Qualitative Measure 2 keyword, full explanation
- Qualitative Measure n keyword, full explanation
- ____________________________________________
- Quantitative Measure 1 keyword, full explanation
- Quantitative Measure 2 keyword, full explanation
- Quantitative Measure n keyword, full explanation
- Proactive Mechanism 2 keyword, full explanation
- Qualitative Measure 1 keyword, full explanation
- Qualitative Measure 2 keyword, full explanation
- Qualitative Measure n keyword, full explanation
- _____________________________________________
- Quantitative Measure 1 keyword, full explanation
- Quantitative Measure 2 keyword, full explanation
- Quantitative Measure n keyword, full explanation
STRATEGY FORMAT
- Reactive Mechanism 1 keyword, full explanation
- Qualitative Measure 1 keyword, full explanation
- Qualitative Measure 2 keyword, full explanation
- Qualitative Measure n keyword, full explanation
- ____________________________________________
- Quantitative Measure 1 keyword, full explanation
- Quantitative Measure 2 keyword, full explanation
- Quantitative Measure n keyword, full explanation
- Reactive Mechanism 2 keyword, full explanation
- Qualitative Measure 1 keyword, full explanation
- Qualitative Measure 2 keyword, full explanation
- Qualitative Measure n keyword, full explanation
- _____________________________________________
- Quantitative Measure 1 keyword, full explanation
- Quantitative Measure 2 keyword, full explanation
- Quantitative Measure n keyword, full explanation
SAMPLE STRATEGY
Many firms are outsourcing, both resources and facilities—perhaps going overseas to find cheaper facilities, cheaper resources (raw materials, components, labor, etc.) and cheaper operating expense (equipment, taxes, land, and construction prices). Let's look at lowering costs to become more cost efficient through relocating facilities overseas and effectively using current manufacturing technology. If that is your strategy, you would have to explain how you would do it.
SAMPLE STRATEGY—Implementation
Strategy Name—Cost Reduction
Strategy Description—A global strategy proposed to make our firm overall more cost efficient.
Implementation
Your strategy will begin with an idea—often derived from a SWOT analysis. You will need to seek management approval for a feasibility study to develop your strategic implementation plan. The feasibility study will establish the potential worth of your strategic idea. You should research to compare the costs of producing your product or service overseas and to find the most appropriate locations to do so.
SAMPLE STRATEGY
You would need to find a suitable foreign nation with business friendly laws, a proper infrastructure, access to resources, a technical climate, and the skill-level needed for your firm’s products or services. Once the location has been selected and its pros and cons identified, you will need to develop a plan for expansion into that region. That plan will have to tell HOW you will take your firm global.
SAMPLE STRATEGY
Let’s say that you explained where you would find that suitable foreign climate where you could produce your products/services at lower cost. You would need to learn the culture, business customs and applicable foreign laws and funds repatriation criteria. You would need to describe who and what would be sent overseas—whether you would have American workers and/or management, or whether local skill levels would allow you to use local talent. You would also need to determine the type of involvement—whether you would manufacture overseas, merely assemble there, or just have a sales distributorship, etc. You would need to determine whether or not you would establish a presence with a local JV—it is always better to have insider information and contacts. A successful local partner, perhaps in a similar, or complementary, industry would certainly help.
SAMPLE STRATEGY
Let’s say you decided on direct foreign investment and setting up your own facilities with a JV partner. You would have to provide times and procedures for each step of your plan—acquiring the overseas facilities, purchasing current production equipment and supplies, setting-up production processes, establishing supply and distribution networks, staffing the operation, developing life support systems for your expatriate personnel, training new employees, reaching operational readiness, planning the eventual shut-down of the old facilities, structuring severance systems or simply laying-off old employees, dismantling old production lines, disposing of old assets, etc.
SAMPLE STRATEGY
Once your plan is completed, you need to acquire management support and funding through presentation and justification of your plan—often requiring a plan for acquiring funding. At each step, a full explanation is needed. You need to be specific, not brief and vague, and show me you understand the rigors and hoops you need to master. I am not expecting a fully detailed strategic plan that will be expected of you in practice as an MBA, but I do need enough information to see that you know the business functions and the necessary machinations to go about implementing a strategy.
So, think the “how to implement your strategy” part through—I think you can get the idea from this—now, lets look at the potential ramifications.
SAMPLE STRATEGY—Ramification
Ramification
If you closed up shop here in the States and went to that selected place overseas, the best potential outcomes—the advantages or pros—are expanding your markets, increasing your market share and production capacity; while cutting costs through cheaper, facilities, labor, operating expenses, raw materials, regulatory fees, etc., so your firm makes tons of money. However—the disadvantages or cons—you may simply spend a lot of time, effort, and money to gain nothing or lose consumer faith in your products. You will also need to consider what happens to your US domestic workforce and the local service industries which supported them in the States. What happens to your image and brand name if you are no longer made in the USA?
SAMPLE STRATEGY
What do you do about the foreign laws regarding non-local workers and local content requirements? What if the foreign laws regulate profit repatriation? What training and skill development must be undertaken to bring the foreign workforce up to your standards? What cultural and legal differences are present in this foreign land? Be careful, the ramifications are both pros and cons. We need to know the advantages and disadvantages of implementing the strategy and several sets of pros/cons are needed.
SAMPLE STRATEGY
The pros are usually the impetus behind your strategy—in this case, the advantages are the potential profit, the cost savings, and the expanded market, better distribution systems, and perhaps, a workforce with a better work ethic and fewer demands—that is if you planned your strategy correctly. The other end of the spectrum may be loss of money and effort, loss of business, consumer dissatisfaction with your products, loss of brand image and ultimate failure. The list goes on—if you think this issue through.
SAMPLE STRATEGY—Evaluation
Evaluation
A proactive mechanism may be milestone audits at the due dates for the steps mentioned in your implementation plan—acquiring the overseas facilities, purchasing current production equipment and supplies, setting-up production processes, etc. Each milestone audit mechanism would gather measures such as: implementation step, percent complete, funds expended, problems encountered, workarounds used, plausible completion date, etc., to assess whether or not your plan is meeting expectations. If not, you have the opportunity to adjust the plan to help ensure a successful implementation.
SAMPLE STRATEGY
A reactive mechanism may be production reports, where you would rely on benchmarks based on the old manufacturing processes. The production reports mechanism of the new production system would gather measures such as: production capacity, cost per unit, defects per 100 units, labor costs, testing the quality, ease of use, or various options of each unit produced, etc. and compare them with their benchmarked counterparts as proof of success or failure of your plan.
SAMPLE STRATEGY
The quantitative measures are numeric data gathered from both proactive and reactive mechanisms—such as percent complete or funds expended in your proactive milestone audits; or labor costs and production capacity in your reactive production reports.
The qualitative measures are the non-numeric quality-oriented or opinionated data gathered from both proactive and reactive mechanisms—such as problems encountered or workarounds used in your proactive milestone audits; and the quality, ease of use or product options in your reactive production reports.
Be aware that you need to identify several specific four-faceted feedback mechanisms and measures.
CONCLUSION
- This has been a basic orientation on SWOT and Strategy. In practice more detail will be expected.
- For example, dozens, or even hundreds, of factors may be needed for a complete SWOT analysis. Each factor would have a complete explanation of its importance and use.
- Implementation plans for strategies would go deep into the operational and functional machinations of each business department, would mandate dozens of potential ramifications, and require specific and detailed explanations of four-faceted feedback mechanisms and measures.
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