You are on page 1of 2
Poge 19 [SWOT analysis “This appeoach focuses on Suengshs, Weaknesses, Opportunities and Threats. naddtion to assessing the opportnities and threats that a PEST arly might evel, it also includes an assessment o the organisations strengths and weaknesses and is capability of responding tthe deal and opportunities tha onion Stebes model canbe used o anticipate technological nd economic changes inthe environment nd initiate planned organisational changes that wll enable a ‘company to remain one step ahead ofthe competion, Stebel posits tha tht san evolutionary eyeeof competitive behavior and tht diffrent phases of the eye ace masked by break pons, He also suggests that, given proper tention vo competi tends, these beak poins can be predited in advance, The wo pases of the eyee are innovation and ficiency. ‘The stat ofthe inovacve phase ofthe eye botom lef of Figure 7.2) is characterised by a sharp eteasein divergence and begins when an incovaton by one competitors seen o create @ new business opportuniy. This tigger thes to innovate and gives se toa greater variety inthe offerings (products and services) available to customers. This process continues uni theese scope fr fuer innovation that offers supplies or customers much nthe way of added valu. At ‘his point divergence of ferngs begins to dele asthe best eaures of past innovations ae imitated by competi. ‘Te nex phase ofthe eyele begins when one or more providers begin to tum ther attention to efiieny rather than innovation. Cost reductions seen asthe out to ‘maintaining marke share and increasing profit. They achieve this by improving systems and proceses to reduce deivered cost. While each phase othe eye can _rese opporanities for some can also poss sheet fo thes. Inthe efiincy phase ofthe cyte ony the test suvive ad ineicient competitors are driven out fuses, Breshooint camargece ot igure 7.2 Suebes (1996) eyele of competitive behaviour ‘Source: Steel, P., “Breakpoint: How to Sayin the Game’, Mastering Management, 1996, Pact 17, Financial Fimes Page 80 ‘When mos ofthe opportunites fr gaining competitive advantage fm improving efcency have been exploited attention might switch once again fo innovation, and the eyle will peat itself. Strebel (1996) sugges indicators that ean be used to anticipate breakpoints. He also notes tha convergence i usually ease to anticipate than divergence because it involves a move towands greater similarity in existing product and services whereas divergence is based on potential new ofeings and ‘er existone might not ho known unl competitor aes thom to customer, Diagnosing internal alignment ‘Two examples of modals that are widely used o diagnos intemal alignment are Pascale and Athos 7 model and Weisbords sx-box organisational mode! Pascale and Athos (1981) 7S model ‘This model highligh seven element of organisations that re seen o make an important contribution to onganisationa effeiveness, However i doesnot make ‘explicit reference to outcomes oto he extemal envionment. The 7S framework points oa range of useful diagnostic questions such as: 1 Strategy. Purpose ofthe business nature ofthe competition; lationship between espoused and actal sayy. 2. Structure. Division of activites iseration ad coordination mechanisrs; mature of infra oration 53, Shstems, Formal procedues for measurement, eward and resoure allocation; informal routines for communicating, resolving conics and so Forth 4. Staff Demographic, cational and atinudinal characteristics of organisational member. 5. Sole. Typical behaviour pattems okey groups such as managers and othe professionals ad ofthe organistin 2 whole 6 Shared values, Core beliefs and values a how thse infuence the organises orientation to custome, employees, shareholders and society at lrg, 11. Skills. The organisation's core competencies and distinctive caabiies Welsbord’s (1978 sicbox medal \Weishord presents his sytemi model sa “practic theory" hat syntesises knowledge and experience frchange ages. I provides 8 conceptual mp of Six elements or boxes that canbe used to apply ay specific (component) theories tothe assessment ofthese elements in away tha can reveal new connections and relationships between elements. tis an open systems model tha ecoghises the importance of egansstion

You might also like