PART III: STRATEGIC FIT ANALYSIS Strategic Fit/Critical Issues Analysis:

PART III: STRATEGIC FIT ANALYSIS Strategic Fit/Critical Issues Analysis:

Critical issues should be the most challenging issues coming from driving forces or industry success

factors (Reiterate them). A table after a brief

review will serve the purpose better. Out of these issues,

the most significant one is identified for immediate actions in the recommendations. Without the

correct anchor in this section, your external and internal environment analysis does not serve any

p

urpose and there is no logic flow of both your individual project and team project. You need to justify

how and why it is the most significant issue facing the company. Since you have analyzed all the critical

issues, you do not need to analyze them all ov

er again in detail in this section, but to crystalize your

decision. You should see a nice flow from the external analyses to the summaries (DFs and KSFs), and

then to the fit analysis between your external challenges and internal capabilities and resource

s to make

conclusion of your opportunities and threat before you discuss your alternatives of how to achieve your

optimal solution for the future challenges and firm survival (Your individual project does not include

alternatives and recommendations, which

are the tasks for the final team term project). The same is

true with the internal analysis and SW. Can you build a link among these factors so that it can help to

make decisions in your company concerning strategic priority and resource allocation for th

e coming

year(s)?

That is how

strategy is crafted (not simply made). After all, what is the two most challenging

issue that you need to address immediately? Without the correct anchor in this section, your team

Value chain analysis:

Your value chain analysis should include analysis for the company and for at least

ONE of the competitors you identified so that you can assess the company

's cost competitiveness in

relation to its rivals. Be sure to identify major activities undertaken to deliver value to the customer, and

value chain activities that firm does more or less well (or more or less efficiently/cost effectively) than

competitors

. Your analysis should help you understand the internal cost structures of the firm (vis

-

a

-

its

competitors), and the resources and capabilities of the firm (which you will present separately in final

report for the Team Project).

project goes nowhere.

Dynamic SWOT Analys

is:

(You are advised to study the sample projects for better understanding.) You

should also provide a summary of the SWOT analysis in a table that summarizes the strengths,

weaknesses, opportunities, and threats. Process: External environment => Challenge

s (DFs & KSFs) =>

Firm resources and capabilities (positive or negative) Yes or No; If Yes, strong, medium or week? Strong

=> Strength => Opportunity; If medium, can we improve it? If yes, => Strength => Opportunity; If no

=weakness => Threat; If weak or n

o capabilities => Weakness => Threat; If DF is disruptive and WT, firm

is doomed; If DF is ongoing challenge, and WT, firm has no capability to make use of opportunity

because opportunity without capability is only an illusion. Note: See my comments in M

issing Link and

samples for better understanding. SWOT analysis should be put at the very end of the Strategic Fit

analysis. SWOT should be a concise summary of your environment analyses, not a replicate of the

analysis done for the situational analysis (a

nalysis on the internal and external environments). This is the

match between the external challenges and internal resources and capabilities.

·

S & W

–

come from

internal analysis

-

Strengths

–

Company’s core competencies

-

Weakness

–

Company’s inability to

overcome its challenges

·

O & T

–

come from external analysis

-

Opportunities

–

If company has

resources to overcome or meet its challenges.

-

Threats

–

Things that are beyond the company’s control,

where the firm has no

or very weak capabilities and resources to overcome or meet its challenges.

PART III: STRATEGIC FIT ANALYSIS Strategic Fit/Critical Issues Analysis:

Critical issues should be the most challenging issues coming from driving forces or industry success

factors (Reiterate them). A table after a brief review will serve the purpose better. Out of these issues,

the most significant one is identified for immediate actions in the recommendations. Without the

correct anchor in this section, your external and internal environment analysis does not serve any

purpose and there is no logic flow of both your individual project and team project. You need to justify

how and why it is the most significant issue facing the company. Since you have analyzed all the critical

issues, you do not need to analyze them all over again in detail in this section, but to crystalize your

decision. You should see a nice flow from the external analyses to the summaries (DFs and KSFs), and

then to the fit analysis between your external challenges and internal capabilities and resources to make

conclusion of your opportunities and threat before you discuss your alternatives of how to achieve your

optimal solution for the future challenges and firm survival (Your individual project does not include

alternatives and recommendations, which are the tasks for the final team term project). The same is

true with the internal analysis and SW. Can you build a link among these factors so that it can help to

make decisions in your company concerning strategic priority and resource allocation for the coming

year(s)? That is how strategy is crafted (not simply made). After all, what is the two most challenging

issue that you need to address immediately? Without the correct anchor in this section, your team

Value chain analysis: Your value chain analysis should include analysis for the company and for at least

ONE of the competitors you identified so that you can assess the company's cost competitiveness in

relation to its rivals. Be sure to identify major activities undertaken to deliver value to the customer, and

value chain activities that firm does more or less well (or more or less efficiently/cost effectively) than

competitors. Your analysis should help you understand the internal cost structures of the firm (vis -a- its

competitors), and the resources and capabilities of the firm (which you will present separately in final

report for the Team Project).project goes nowhere.

Dynamic SWOT Analysis: (You are advised to study the sample projects for better understanding.) You

should also provide a summary of the SWOT analysis in a table that summarizes the strengths,

weaknesses, opportunities, and threats. Process: External environment => Challenges (DFs & KSFs) =>

Firm resources and capabilities (positive or negative) Yes or No; If Yes, strong, medium or week? Strong

=> Strength => Opportunity; If medium, can we improve it? If yes, => Strength => Opportunity; If no

=weakness => Threat; If weak or no capabilities => Weakness => Threat; If DF is disruptive and WT, firm

is doomed; If DF is ongoing challenge, and WT, firm has no capability to make use of opportunity

because opportunity without capability is only an illusion. Note: See my comments in Missing Link and

samples for better understanding. SWOT analysis should be put at the very end of the Strategic Fit

analysis. SWOT should be a concise summary of your environment analyses, not a replicate of the

analysis done for the situational analysis (analysis on the internal and external environments). This is the

match between the external challenges and internal resources and capabilities.  S & W – come from

internal analysis - Strengths – Company’s core competencies - Weakness – Company’s inability to

overcome its challenges  O & T – come from external analysis - Opportunities – If company has

resources to overcome or meet its challenges. - Threats – Things that are beyond the company’s control,

where the firm has no or very weak capabilities and resources to overcome or meet its challenges.