Module 3: S.W.O.
T Analysis Model
SWOT analysis
Strategic planning tool created by
Albert Humphrey to evaluate the SWOT
involved in a project or business venture.
Involves specifying the objective and
then identifying the internal and external
factors that are favorable and unfavorable to
achieve that objective.
Things to Consider in making S.W.O.T Analysis
Technique
Concept of Environment
Literally means the surroundings,
external objects, influences or circumstances
under which someone or something exists.
The environment of any organization is
“the aggregate of all conditions, events and
influences that surround and affect it” ( ).
Since the environment influences an
organization in multitudinous ways, it is of
crucial importance to understand it.
Characteristics of Environment
1. Environment is complex
2. Environment is dynamic
3. Environment is multi-faceted. Depends on
the perception of the observer.
4. Environment has a far-reaching impact.
Big and lasting effect that reaches a lot of
different areas.
External and Internal Environment
Internal: Strengths & Weaknesses
External: Opportunities &Threats
Strength is an inherent capacity which an
organisation can use to gain strategic
advantage: developmental skills
Weakness is an inherent limitation or
constraint which creates strategic
disadvantages: overdependence
Opportunity is a favourable condition in the
organisation’s environment which enables it
to consolidate and strengthen its position:
Growing Demand
Threat is an unfavourable condition in the
organisation’s environment which creates a
risk for, or causing damage to the
organisation: Emergence of strong new
competitor
Strategy Formulation
1. Leverage (S + O)
In this situation, integrate opportunities and
advantages. However, opportunities are often
fleeting, so companies must sharply capture
opportunities and seize the opportunity to
seek greater development.
2. Inhibitory (W + O)
Impeding, preventing, influencing and
controlling. In this situation, companies need
to provide and add certain resources to
promote the transformation of internal
resources and disadvantages into advantages
to cater to or adapt to external opportunities.
3. Vulnerability (S + T)
The decrease in the degree or intensity of
advantages. When environmental conditions
pose a threat to the company’s strengths, the
advantages cannot be fully exerted and
ending up with a fragile situation. In this
situation, companies must overcome the
threats to take advantage of them.
4. Problematic (W + T)
Companies face severe challenges. If they are
not properly handled, they may directly
threaten the survival of the company.
Advantages of SWOT Analysis
 Simple to use;
 Flexible and Adaptable;
 Leads to clarification of issues;
 Develops goal-oriented alternatives;
 Useful starting point for strategic analysis.
Disadvantages of SWOT Analysis
 Simplicity
 Compiling list rather for achieving
objectives
 Usually reflects an evaluator’s position
and viewpoint
 Strengths may be confused with
opportunities
 May encourage organisations to take a
lazy course of action
Module 4: Implementation and Evaluation
Implementing strategy affects an organization
from top to bottom; it affects all the functional and
divisional areas of a business. The best formulated
and best implemented strategies become obsolete
as a firm’s external and internal environments
change.
Strategic implementation is a process that puts
plans and strategies into action to reach desired
goals. The strategic plan itself is a written
document that details the steps and processes
needed to reach plan goals, and includes feedback
and progress reports to ensure that the plan is on
track.
WHAT STRATEGIC IMPLEMENTATION
ADDRESSES
WHO, WHERE, WHEN, and HOW of reaching the
desired goals and objectives. Implementation
involves assigning individuals to tasks and
timelines that will help an organization reach its
goals.
BASIC FEATURES IN STRATEGIC
IMPLEMENTATION
 Very visible leader, such as the CEO, as he
communicate the vision, excitement and
behaviors necessary for achievement.
 Everyone in the organization should engaged
in the plan.
 Performance measurement tool are helpful to
provide motivation and follow for follow-up.
 Implementation often includes a strategic map,
which identifies and maps the key ingredients
(finances, market, work environment,
operations, people and partners) that will direct
performance.
COMMON MISTAKES IN STRATEGIC
IMPLEMENTATION
 Not developing ownership in the process.
 Lack of communication and a plan
 Too fluffy, with little concrete meaning and
potentials, or it is offered with no way of
tracking its progress.
 Address the common mistake implementation
annually, allowing management and
employees to become caught up in the day-to-
day operations and neglecting the long term
goals.
 Not making employees accountable for
various aspects of the plan or powerful
enough to authoritatively make changes.
NECESSARY ELEMENTS IN STRATEGIC
IMPLEMENTATION
 The right people must be ready to assist you
with their unique skills and abilities.
 Resources, which include time and money, to
successfully implement the strategy.
 The structure of management must be
communicative and open, with scheduled
meetings for updates.
 Management and technology systems must be
in place to track the implementation,
 Environment in the workplace must be such
that everyone feels comfortable and
motivated.
STRATEGIC CONTROL MECHANISM
Strategic control is the process of
monitoring the various strategic of the
organization and determining whether there is a
parallelism between the organizational milieu and
that of the environment.
 Types of Strategic Control According to Purpose
Presupposition Control
Designed to check systematically and
regularly whether the arguments set during the
planning and implementation processes are still
binding.
Implementation Control
Applied to evaluate whether the
intermediate strategies are consistent with the
overall strategy.
Strategic Surveillance
Monitoring system whereby a broad range
of occurrences inside and outside the organization
threatens the implementation of an organization’s
strategy. Shadowing, observing, and scrutinizing
the milieu.
Vigilance Control
Special type of strategic control that is
applied when immediate reconsideration of an
organization’s strategy/strategies is pursued.
Types of Strategic Control According to
Approach
Sequential Strategic Control
Traditional way of looking at strategic
monitoring. It is sequential, looks simple,
straightforward, and less threatening due to its
chronological order, the approach does not lend
itself to change and versatility.
Interactive Strategic Control
Communicating and collaborative nature
of the process of strategy formulation, strategy
implementation, and strategy control.
Advantageous in all aspects. Takes into
consideration the limitless possibilities that may
occur in the environments thus, opportunities for
improvements are easily executed.
Feedback Strategic Control is a combination of the
sequential and interactive approaches.
STRATEGY EVALUATION
Involves looking back at the goals in your
strategic plan and assessing how well you’ve done
against achieving them.
Typically, the strategy evaluation process involves
answering questions such as:
*How much progress have we made towards our
Vision?
*Are our Strategic Focus Areas still relevant?
*Which of our Objectives have we completed?
*Which Objectives are no longer needed?
*Do we have sufficient Projects to deliver
incomplete Objectives?
*Are our KPIs still effective for measuring
progress towards our Objectives?
*Where we fell short of our targets, why did this
happen? Not valuing targeted
1. Evaluation starts at the start
2. Implement consistent processes and tools
3. Empower teams to evaluate their own
strategies
4. Take corrective action
5. Iterate your plan
6. Celebrate successes
FACTORS THAT MAY INFLUENCE A
COMPANY’S STRATEGIC DECISION MAKING
1. Size of Firm
2. Products
3. Market
4. Competition
5. Philosophy of Management
ORGANIZATIONAL COMPONENTS THAT
CAN ADD THE VALUE TO THE BUSINESS
ENTITY
Organizational Policies. The lifeblood of an
organization. They put organizational structure
and system in place. They ensure order, hierarchy
of authority, and clear delineation of functions,
efficiency, productivity, and good interpersonal
relationship.
Module 5: Organizational Strategies
CONCEPTS ON STRATEGY FORMULATION
Schools of thought on strategy formation
Strategic management is an evolutionary
process. In the course of its development, several
strands of thinking are emerging which are
gradually leading to a convergence of views.
ORGANIZATIONAL STRATEGIES
In most corporations there are several
levels of management.
Corporate strategy is the highest of these levels in
the sense that it is the broadest – applying to all
parts of the firm – while also incorporating the
longest time horizon. It gives direction to
corporate values, corporate culture, corporate
goals, and corporate missions.
Under this broad corporate strategy there are
typically business-level – (designed to position
the strategic business unit in a diversified
corporation. Each firm formulates a business
strategy in order to achieve a sustainable
competitive advantage) - competitive strategies
and functional (developed in key areas in the
organization such as marketing, finance,
production; consistent with long term objectives)
unit strategies. Hence, organizational strategy is
divided into three levels, the corporate level
strategy, the business level strategy, and the
functional level strategies

Types of Corporate Strategies
Business Strategy
Generic Competitive Strategies
introduced by Michael Porter
Competitive Tactics
Two categories of competitive tactics are those
dealing with timing and market location
Cooperative Strategies
Agreement or alliance between two or more
businesses formed to achieve strategically
significant objectives that are mutually
beneficial.
Types of Functional Strategies
 Marketing Strategy
 Financial Strategy
 Production/Operation
 Human Resources
 R&D Strategy
Operational strategy is an additional level of
strategy encouraged by Peter Drucker in his
theory of management by objectives (MBO).
 Very narrow in focus and deals with day-
to-day operational activities such as
scheduling criteria.
 Must operate within a budget but is not at
liberty to adjust or create that budget.
 Operational level strategies are informed
by business level strategies which, in turn,
are informed by corporate level strategies.
Dynamic Strategy
Since the turn of the millennium, some firms
have reverted to a simpler strategic structure
driven by advances in information
technology.
It is felt that knowledge management systems
should be used to share information and
create common goals. Strategic divisions are
thought to hamper this process. This notion
of strategy has been captured under the
rubric of dynamic strategy, popularized by
Carpenter and Sanders.
CHOOSING THE BEST STRATEGY
ALTERNATIVES
Choosing the best strategy is quite tough for
the organization.
▪ get as clear as possible about objectives and
decision criteria
▪ chosen strategies must be effective in
addressing the "critical issues" the company
faces at this time
▪ Consistent with the mission and other
strategies of the organization
▪ Consistent with external environment
factors, including realistic assessments of the
competitive environment and trends
▪ fit the company's product life cycle position
and market attractiveness/competitive
strength situation
▪ must be capable of being implemented
effectively and efficiently, including being
realistic with respect to the company's
resources
▪ The risks must be acceptable and in line with
the potential rewards