19. Strategy and SWOT

Question 1

What is strategy?

Answer 1

Strategy is the long-term planning and work of the organization. Strategy guides the day-to-day operations work in the organization and provides a framework and feedback mechanism to evaluate the long-term effects of that work on the future of the organization.

Question 2

What are the five steps of the Strategic Planning Process?

Answer 2

1. Define the Vision and Mission
2. Environmental Scanning
3. Strategy Design
4. Strategy Implementation
5. Evaluation and Control

Question 3

What is the difference between the vision statement and a mission statement of an organization?

Answer 3

The vision statement describes what the organization intends to be or become, and answers the question, “Who are we?” The vision statement subsequently guides the development of the mission statement.

The mission statement describes what the organization is committed to do or how it will act. The mission statement answers the question, “What do we do?”

Question 4

What are the aspects that form an organization’s environment?

Answer 4

• The world in which the organization operates
• Competitors, current and potential
• Customers, current and potential
• Suppliers and other stakeholders
• The organization’s internal structure

Question 5

What is SWOT?

Answer 5

SWOT is a tool that can be used for both environmental scanning and designing strategy. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT separates factors into internal factors (Strengths and Weaknesses) and external factors (Opportunities and Threats).