3.3 Systems and strategy

Question 1

What is SWOT analysis?

Answer 1

Interpretation of the Strengths, Weaknesses, Opportunities and Threats around an organisation or a particular plan.

Question 2

What is meant by the micro-environment?

Answer 2

The external but “near” environment which includes close relationships such as those with banks etc, within the direct control of the organisation.

Question 3

What is meant by the macro-environment?

Answer 3

The area of the external environment outside the direct control of the organisation, e.g. interest rates.

Question 4

What three aspects make up the supply chain of an organisation?

Answer 4

Inputs (people, capital, knowledge)
Transformation process (unique selling point)
Outputs (goods and services)

Question 5

What are the three stages for establishing a “System structure”?

Answer 5

1) Draw the boundary - i.e. what falls within and outside the limits of the system
2) Identify the elements - what are the people/documents/processes that make up the system
3) Establish relationships - how do the elements link to one another?