College of Natural and

Computational Science
School of Information Science
Introduction to Management
Assignment
(Section 3)

Group members:
Dandy Herko --------------------------UGR/3573/15
Beshah Ashenafi ------------------------UGR/5569/15
Elshaday Bilelign ----------------------UGR/4850/15
Kenbon Leta ----------------------------UGR/8977/14
Melat Mamushet -----------------------UGR/3703/15

Submitted to: Ali E.

Question #3) Why the organizations analyze the internal strength and weakness and external threat and opportunities?
How and what managers are trying to solve problems & exploit the opportunities available in the environment?

Analyzing strength and weakness of organization

For a company to know and understand their status and where there progress is leading them they have to analyse
their weakness and strength, either with on their organization or their relationship with their environment. These
operation could be accomplished by different means and its process is know as SWOT Analysis (strength, weakness,
opportunity and treats).

Through the process finding the problem a company one can understand the weakness, strength , the treat and the
opportunity given to the current state of an organization. There are different problem type with in a company one
leading to what gives the strengths to a company and the other to the weakness of the company.

Manager, to analyse the strength or the weakness of an organization with in or externally, after finding the source of
the problem the next stage is to diagnose to the cause of the problem. There are several ways in which this could be
achieved: Scanning stage, categorization stage and diagnosis stage.

SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business, as well as
part of a business such as a product line or division, an industry, or other entity. SWOT analysis was first used to
analyze businesses. Now, it's often used by governments, nonprofits, and individuals, including investors and
entrepreneurs. There is seemingly limitless applications to the SWOT analysis.
Components of SWOT Analysis
Every SWOT analysis will include the following four categories. Though the elements and discoveries within these
categories will vary from company to company, a SWOT analysis is not complete without each of these elements:
Strengths :describe what an organization excels at and what separates it from the competition: a strong brand, loyal
customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed
a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to
attract new investors.
Weaknesses: stop an organization from performing at its optimum level. They are areas where the business needs to
improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply
chain, or lack of capital.
Opportunities: Opportunities refer to favorable external factors that could give an organization a competitive
advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing
sales and market share.
Threats: Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to
a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like
rising costs for materials, increasing competition, tight labor supply. and so on.

Solving problems
Exploiting opportunity

Generally, to conclude on why organizations analyze the internal strength and weakness and external threat and
opportunities so that they could gain a comprehensive understanding of their current position and the
environment in which they operate. By identifying internal strengths, such as skilled employees or efficient
processes, and weaknesses, such as outdated technology or lack of resources, organizations can capitalize on their
strengths and address their weaknesses to improve performance.

Similarly, by assessing external threats, such as competition or market changes, and opportunities, such as emerging
trends or new markets, organizations can proactively plan for potential challenges and take advantage of favorable
conditions. This analysis helps organizations make informed decisions, develop strategic plans, and allocate resources
effectively to achieve their goals and remain competitive in their industry.

Solving problems and Exploiting Opportunities

Managers play a critical role in solving problems and exploiting opportunities within the dynamic and often
unpredictable business environment. Their ability to navigate challenges and capitalize on favorable circumstances is
essential for the success and sustainability of their organizations. In this essay, we will explore how managers
approach problem-solving and opportunity exploitation, as well as the strategies they employ to address these aspects
of organizational management.

Problem-Solving in Management: Managers are frequently confronted with a wide range of challenges, including
operational inefficiencies, conflicts among team members, financial constraints, and external market pressures. To
effectively address these issues, managers often employ structured problem-solving methodologies. One such
approach is the use of root cause analysis, which involves identifying the underlying reasons for a problem before
developing and implementing solutions. By understanding the fundamental causes of an issue, managers can avoid
merely addressing symptoms and instead implement lasting solutions.

Opportunity Exploitation in Management: In parallel to problem-solving, managers are tasked with identifying and
exploiting opportunities within the business environment. Opportunities can manifest in various forms, such as
emerging market trends, technological advancements, strategic partnerships, or shifts in consumer behavior. To
capitalize on these opportunities, managers must maintain a proactive and forward-thinking mindset.

Managers often engage in environmental scanning, which involves monitoring the external business environment for
potential opportunities and threats. This may include analyzing market trends, conducting competitive intelligence,
and staying abreast of regulatory changes. By staying informed about external developments, managers can position
their organizations to take advantage of emerging opportunities and mitigate potential risks.

Strategies for Effective Problem-Solving and Opportunity Exploitation:

To navigate the complexities of problem-solving and opportunity exploitation, managers often employ several key
strategies. These may include:

1. Strategic Planning: Developing long-term strategic plans that align with the organization's goals and values, while
also accounting for potential challenges and opportunities.

2. Risk Management: Implementing risk management processes to identify, assess, and mitigate potential threats to
the organization, while also recognizing opportunities that may arise from calculated risks.

3. Continuous Improvement: Embracing a culture of continuous improvement, where managers and employees are
encouraged to seek out inefficiencies and develop innovative solutions to enhance organizational performance.

4. Flexibility and Adaptability: Remaining flexible and adaptable in the face of changing circumstances, allowing for
swift adjustments to strategies and tactics in response to new challenges and opportunities.

5. Empowering Employees: Empowering employees to contribute to problem-solving and opportunity identification,

recognizing that diverse perspectives and experiences can lead to more comprehensive and effective solutions.

To conclude, managers play a pivotal role in addressing challenges and leveraging opportunities within the business
environment. By employing structured problem-solving methodologies, fostering a culture of innovation, and staying
attuned to external developments, managers can effectively navigate complexities and drive their organizations
toward sustainable success. Through strategic planning, risk management, and a commitment to continuous
improvement, managers can position their organizations to thrive in an ever-evolving business landscape.

WHY MANAGER IS STUDY THE INTERNAL STRENTH AND WEAKNESS AND THE EXTERNAL TREATE
AND OPPRTUNITY OF A COMPANY?
 RECOGNIZE THE CURRENT STATE OF A COMPANY AND
 IMPROVE THE PERFORMANCE OF COMPANY
WHAT MANAGERS ARE TRYING TO SOLVE PROBLEMS & EXPLOIT THE OPPORTUNITIES
AVAILABLE IN THE ENVIRONMENT?

1. Why manager is study the internal strenth and weakness and the external treate and opprtunity of a company?

A manager may analyze the internal weakness and strength and the external threat and opportunity of a company to
understand the current situation and performance of the company, as well as to identify the potential areas for
improvement and growth. By conducting such an analysis, a manager can:

 Recognize the core competencies and competitive advantages of the company, as well as the areas that need to
be improved or eliminated.
 Evaluate the external factors that may affect the company’s success or failure, such as market trends, customer
preferences, competitors’ actions, and environmental changes.
 Develop strategic goals and plans that align with the company’s vision and mission, and that leverage the
strengths and opportunities while minimizing the weaknesses and threats.
 Monitor and measure the progress and outcomes of the strategic actions, and make adjustments as needed.

One of the tools that a manager can use to conduct such an analysis is the SWOT model, which stands for Strengths,
Weaknesses, Opportunities, and Threats. The SWOT model is a simple but effective framework that helps a manager to
assess the internal and external factors that are relevant to the company’s objectives1. The SWOT model can be
represented by a table, as shown below:
 Strengths Weaknesses

Internal factors that give the company an advantage over others Internal factors that limit the company’s performance or potential

Examples: strong brand, loyal customers, innovative products, efficient processes, Examples: high costs, low quality, outdated technology, poor reputation, lack
skilled workforce, etc. of resources, etc.

Opportunities Threats

External factors that the company can exploit to achieve its goals External factors that can harm the company or reduce its chances of success

Examples: new markets, emerging trends, favorable regulations, customer Examples: new competitors, changing preferences, unfavorable regulations, economic
needs, etc. downturn, etc.

Another tool that a manager can use to complement the SWOT analysis is the PESTLE model, which stands for Political,
Economic, Social, Technological, Legal, and Environmental. The PESTLE model is a comprehensive framework that
helps a manager to scan the external macro-environment that the company operates in, and to identify the opportunities
and threats that may arise from it1. The PESTLE model can be represented by a list of questions, as shown below:

 Political: What are the political factors that may affect the company, such as government policies, stability, trade
agreements, etc.?
 Economic: What are the economic factors that may affect the company, such as growth, inflation, interest rates,
exchange rates, etc.?
 Social: What are the social factors that may affect the company, such as demographics, culture, values, attitudes,
lifestyles, etc.?
 Technological: What are the technological factors that may affect the company, such as innovation, research,
development, automation, etc.?
 Legal: What are the legal factors that may affect the company, such as laws, regulations, standards, compliance,
etc.?
 Environmental: What are the environmental factors that may affect the company, such as climate, natural
resources, pollution, sustainability, etc.?

By using the SWOT and PESTLE models, a manager can conduct a thorough and systematic internal and external
analysis that can help the company to achieve its strategic objectives.

2. what managers are trying to solve problems & exploit the opportunities available in the environment?

Managers are trying to solve problems and exploit the opportunities available in the environment to achieve their goals
and improve their performance. Problems are situations that prevent managers from reaching their desired outcomes,
while opportunities are situations that offer potential benefits or advantages for managers to pursue. Managers need to
identify, analyze, and resolve problems, as well as identify, evaluate, and exploit opportunities, using various tools and
techniques.

One of the tools that managers can use to solve problems is the problem-solving cycle, which consists of six steps 1:

 Define the problem: Clarify the nature, scope, and impact of the problem, and state the desired outcome.
 Analyze the problem: Gather relevant data and information, identify the root causes and effects of the problem,
and generate possible solutions.
 Evaluate the alternatives: Compare the pros and cons of each solution, and select the best one based on the
criteria and constraints.
 Implement the solution: Plan and execute the actions required to implement the chosen solution, and monitor
the progress and results.
 Evaluate the results: Assess the effectiveness and efficiency of the solution, and measure the outcomes against
the desired goals.
 Learn from the experience: Identify the lessons learned from the problem-solving process, and apply them to
future problems.

One of the tools that managers can use to exploit opportunities is the opportunity analysis, which consists of four steps 2:

 Identify the opportunity: Recognize the potential value or benefit of a situation, and state the desired outcome.
 Analyze the opportunity: Gather relevant data and information, identify the key factors and assumptions of the
opportunity, and generate possible strategies.
 Evaluate the alternatives: Compare the costs and benefits of each strategy, and select the best one based on the
criteria and constraints.
 Implement the strategy: Plan and execute the actions required to implement the chosen strategy, and monitor
the progress and results.
By using these tools, managers can solve problems and exploit opportunities in a systematic and effective way, and
enhance their decision-making and performance.