In this presentation, we will discuss about SWOT analysis concept, required for the various aspects in strategic management and its formulation.
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Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Strategic Management - SWOT Analysis & Strategic Formula
1. Chapter 4 Page 123
STRATEGIC MANAGEMENT IS CONCERNED WITH
ESTABLISHING THE PROPER ORGANISATION
AND
MATCHING THE ORGANISATIONAL FACTORS WITH
ENVIRONMENTAL FACTORS
INVOLVES AN ANALYSIS OF
• ORGANISATIONAL FACTORS
( STRENGTHS AND WEAKNESSES OF THE ORGANISATION )
• ENVIRONMENTAL FACTORS
( THREATS AND OPPORTUNITIES IN THE BUSINESS ENVIRONMENT )
2. Chapter 4 Page 123
SWOT ANALYSIS
IS
PRIME AND PRIMARY STEPS IN STRATEGIC MANAGEMENT
OTHER TERMS
SCOT - STRENGTHS, CONSTRAINTS , OPPORTUNITIES AND
THREATS
ETOP - ENVIRONMENTALTHREATS AND OPPORTUNITIES PROFILE
EFE - EXTERNAL FACTORS EVALUATION
IFE - INTERNAL FACTORS EVALUATION
3. Chapter 4 Page 124
MARKETING
STRENGTHS
• STRONG BRAND IMAGE
• HIGH QUALITY PRODUCT
• STRONG DISTRIBUTION NETWORK
• EFFICIENT AND MOTIVATED SALES FORCE
WEAKNESSES
• POOR BRAND IMAGE
• POOR QUALITY PRODUCT
• WEAK DISTRIBUTION
• LOW MORALE AND POOR SALES FORCE
4. Chapter 4 Page 124
PRODUCTION
STRENGTHS
• ECONOMICS OF SCALES
• STATE OF THE ART TECHNOLOGY
• EFFICIENT INPUT SOURCING
• STRONG R&D SUPPORT
WEAKNESSES
• HIGH COST DUE TO SMALL SIZE
• OBSOLETE TECHNOLOGY
• INEFFICIENT INPUT SOURCING
• NO R& D
5. Chapter 4 Page 124
FINANCE
STRENGTHS
• COMFORTABLE DEBT- EQUITY RATIO
• LARGE INTERNAL ACCRUALS
• HIGH DIVIDENDS AND MARKET CAPITALISATION
• HIGH CREDIT RATING
WEAKNESSES
• LOP - SIDED CAPITAL STRUCTURE
• HIGH INTEREST PAYMENTS
• POOR RESERVES
• LOW CREDIT RATING
6. Chapter 4 Page 125
OPPORTUNITIES / THREATS
( REGULATORY / POLITICAL )
OPPORTUNITIES
• DELICENSING
• DERESERVATIONS
• MRPTA RELAXATIONS
• IMPORT LIBERALISATION
• LIBERALISATION OF FOREIGN INVESTMENT ANDTECHNOLOGY
• CAPITAL MARKET REFORMS
THREATS
• OPPORTUNITIES FOR SOME ONE, ARE THREATS TO SOME OTHERS
7. Chapter 4 Page 125
DELICENSING IS AN OPPORTUNITY TO
• ENTER NEW BUSINESS
• EXPAND EXISTING BUSINESS
POSESS THREAT TO
• EXISTING FIRMS ENJOYING BENEFITS OF
PROTECTED MARKET
8. Chapter 4 Page 126
TECHNIQUES FOR ENVIRONMENTAL ANALYSIS
• VERBAL AND WRITTEN INFORMATION
• SEARCH AND SCANNING
• SPYING
• FORECASTING
GULECK
9. Chapter 4 Page 127
STRATEGY ( SWOT )
STRATEGY FORMULATION INVOLVES RELATING
ORGANISATIONAL STRENGTHS AND WEAKNESSES
TO ENVIRONMENTAL THREATS AND OPPORTUNITIES
10. Chapter 4 Page 127
TOWS MATRIX
WT OR MINI-MINI STRATEGY- MINIMISE THE WEAKNESSES AND
THREATS
WO OR MINI-MAXI STRATEGY- MINIMISING THE WEAKNESSES AND
MAXIMISING THE OPPORTUNITIES
ST OR MAXI-MINI STRATEGY- USES ORGANISATION’S STRENGTHS
WITH ENVIRONMENTAL THREATS
SO OR MAXI-MAXI STRATEGY- USES ORGANISATIONS STRENGTHS
TO EXPLOIT THE OPPORTUNITIES
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