company analysis
rt1911
Tool11SWOT.pptxStrategic Management Tool Eleven
MGT 4810
Dr. Amye Melton
Tool Eleven
Each of the ten individual analyses discussed previously produce outcomes in the form of strengths, weaknesses, opportunities and threats. You should have summarized and listed the appropriate outcomes at the conclusion of each tool.
Strengths (S) and Weaknesses (W) are either advantages or limitations, respectively, of a firm arising from internal resources, skills, and capabilities possessed by the firm relative to it competitors.
Opportunities and threats, on-‐the-‐other-‐hand, are major favorable (O) or unfavorable (T) situations arising in a firm’s external environment.
Tool Eleven (cont.)
Seeing linkages and connections between the various SWOT elements and crafting [framing] a strategy that uses those elements to make the organization better or stronger is creative. Framing a strategy correctly is critical. It is common to reword a strategy several times to allow for flexibility in the implementation phase as well as assuring consistency with the company’s Mission and Generic Strategy.
Tool Eleven (cont.1)
Generally, there are four categories of strategies that can be created. Matching an Opportunity with Strength yields an EXPLOITIVE strategy. Matching an Opportunity with a Weakness leads to the creation of an ALLIANCE Strategy. Putting a Threat together with Strength will yield a DEFENSIVE Strategy while a Threat combined with a Weakness will evoke the creation of a REACTIVE or COVERT Strategy.
SWOT
Tool Eleven (cont.2)
A question often arises as to how many strategies should be framed and recommended in the final version of the strategic plan. Theoretically, the response is as many as required to neutralize or mitigate all of the threats and weaknesses facing the organization. Practically speaking, most large publically held companies would have the slack resources and the will to implement ten corporate-‐level strategies because implementation requires time and money, both of which are scarce commodities. Combine these factors with the risk orientation of top management, final strategy selection, prioritizing, and recommendation becomes an issue for the analyst.
Tool Eleven (cont.3)
You will develop 10 strategies for recommendation. You will need to develop at least two strategies for each type: exploitive, defensive, alliance, and covert.
In addition to the recommendation, you should include the expected outcome of the strategy.
An example is on the next couple of slides.
Strengths
Weaknesses
Opportunities
Threats
This is only for exploitive, you will also create this for the four types of strategies.
