CHAPTER 3 Flashcards
(23 cards)
is the process that identifies an organization’s strengths, weaknesses, opportunities and threats.
SWOT Analysis
is a basic, analytical framework that assesses what an entity can and cannot do, for factors both internal as well as external.
SWOT
The main purpose of this is to add value to goods and services that would result to easy recruitment of new customers.
SWOT Analysis
ELEMENTS OF SWOT ANALYSIS
STRENGTH (TOP LEFT) ( + INTERNAL FACTOR)
WEAKNESS (TOP RIGHT) (- INTERNAL FACTOR)
OPPORTUNITY (BOTTOM LEFT) ( + EXTERNAL FACTOR)
THREAT (BOTTOM RIGHT) (- EXTERNAL FACTOR)
Describe what an organization excels at and separate it from the competition.
Strengths.
Example of these, are strong brand, loyal customer base, strong balance sheet, and unique technology.
Strengths.
Are areas where the business needs to improve to remain competitive such as high levels, of debt, an inadequate supply chain, lack of capital, limited expertise, substandard service or physical location.
Weaknesses
Examples of Weaknesses
(Doesn’t need to memorize, but be familiar to it)
ONLINE PRESENCE
BRANDING AND REPUTATION
OUTDATED TECHNOLOGY
MARKETING BUDGET
HUMAN RESOURCES
Refers to favorable external factors that an organization can use to give it a competitive advantage such as market growth, lifestyle changes, resolution of current problems or the basic ability to offer a higher degree of value in relation to competitors to promote and increase demand.
Opportunities.
Refers to factors that have the potential to harm an organization such as
cost for inputs,
increasing competition,
tight labor supply,
unsustainable price,
increased government regulation,
economic downturns,
negative press coverage,
shifts in consumer behavior
Threats
MAJOT BENEFIT OF SWOT ANALYSIS.
Cost-effective
Wide range of application
Promotes Discussion
Provides Visual Overview
Offers Insights
Integration and Synthesis
Fosters Collaboration
Refers to the process of concentrating resources and efforts on a specific set of goals or priorities to achieve a competitive advantage or success in business.
Strategic Focus
It provides clear direction, optimizes the allocation of resources, and ensures that actions are aligned with long-term objective.
Strategic Focus
FOUR MAJOR DIRECTIONS FOR STRATEGIC EFFORTS.
(A - D - T - D)
AGGRESSIVE
DIVERSIFICATION
TURNAROUND (wALANG SPACE)
DEFENSIVE
Achieving rapid growth by using the organization’s strengths and capitalizing on favorable market conditions.
Aggressive
Reducing risk and stabilizing revenue streams by expanding into new markets, industries, or product lines.
Diversification
Reviving a struggling business by addressing operational inefficiencies, cutting costs, or reorienting the business model.
Turnaround
Were developed by globally pre-eminent management thinkers.
Blue Ocean Strategy
Red Ocean Strategy
Protecting the company’s existing market position and assets by minimizing risks and guarding against external threats.
Defensive
Who are the globally pre-eminent management thinkers.
Chan Kim and Renee Mauborgne
Represents all the industries in existence today – the known market space.
Red Ocean Strategy
referred to a market for a product where there is no competition or very less competition and there is no pricing pressure.
Blue Ocean Strategy
In this, the companies compete within established boundaries, often leading to intense competition.
Red Ocean Strategy.
