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As a basic tool its mastery is a fundamental requirement for the marketer, entrepreneur or business person. A clear understanding of SWOT is required for business majors. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths S or weaknesses Wand those external to the firm can be classified as opportunities O or threats T.
Such an analysis of the strategic environment is referred to as a SWOT analysis. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan: Examples of such strengths include: Patents Strong brand names Good reputation among customers Cost advantages from proprietary know-how Exclusive access to natural resources Good access to distribution networks Slide 8 WeaknessesThe absence of certain strengths are a weakness.
For example, the following may be considered weaknesses: Lack of patent protection A weak brand name Poor reputation among customers High cost structure Lack of access to best natural resources Lack of access to key distribution channels Slide 9 Weaknesses - ContinuedIn some cases, a weakness may be the flip side of a strength.
For example, a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.
Slide 10 OpportunitiesThe external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include: An unfulfilled customer need Arrival of new technologies Loosening of regulations Removal of international trade barriers Slide 11 ThreatsChanges in the external environmental also may present threats to the firm.
Some examples of such threats include: Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity.
W-O strategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.
W-T strategies make a defensive plan to prevent the firm's weaknesses from making it susceptible to external threats.Powerpoint presentation, lockheed martin raising the bar: achieving 3 the organization planning process 5 organizational planning process strategic goals 2 evaluation 7 purpose & vision 1 strategic goals & objectives “current state”.
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Strategic Planning Strategic Planning First Stage of Strategic Planning may involve: Futures Thinking Thinking about what the business might need to do 10–20 years ahead Strategic Intents Thinking about key strategic themes that will inform decision making “The thicker the planning document, the more useless it will be” (Brent Davies.
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