BUSINESS OPERATION SKILLS- KIM

104
Session 02: Introduction to Business Strategy
Presented By: Muhammad Mahbub Alam FCA
Corporate appraisal- SWOT Analysis

 Corporate appraisal brings together the results of the external and

internal analyses so that the business can assess its strengths,
weaknesses, opportunities and threats (SWOT analysis).

 SWOT is an acronym used to describe the particular Strengths,

Weaknesses, Opportunities, and Threats that are strategic factors for
a specific company. A SWOT should represent an organizations
core competencies while also identifying opportunities it can not
currently use to its advantage due to a gap in resources.

 Strengths and weaknesses are often internal to your organization,

while opportunities and threats generally relate to external factors.
For this reason, SWOT is sometimes called Internal-External
Analysis and the SWOT Matrix is sometimes called an IE Matrix.
Corporate appraisal- SWOT Analysis

Strengths (S) Weakness (W)

What advantages does your organization have? What could you improve?
What do you do better than anyone else? What should you avoid?
What unique or lowest-cost resources can you draw upon What are people in your market likely to see as weaknesses?
that others can't? What factors lose you sales?
What do people in your market see as your strengths?
What factors mean that you "get the sale"?
What is your organization’s unique selling proposition.

Opportunities (O) Threats (T)

What good opportunities can you spot?
What interesting trends are you aware of?
Useful opportunities can come from such things.
Changes in technology and markets on both a broad and
narrow scale
Changes in government policy related to your field.
Changes in social patterns, population profiles, lifestyle
changes, and so on.
Local events.
What obstacles do you face?
What are your competitors doing?
Are quality standards or specifications for your job, products
or services changing?
Is changing technology threatening your position?
Do you have bad debt or cash-flow problems?
Could any of your weaknesses seriously threaten your
business?
Mission and Objectives
 Mission is a general statement of how you will achieve your vision. Strategies are a series of ways of using the mission to
achieve the vision.

 Goals are statements of what needs to be accomplished to implement the strategy. Objectives are specific actions and
timelines for achieving the goal.
GAP Analysis
A comparison between an entity's desired future performance level (expressed in terms of profit) and the expected performance of
projects both planned and underway. Differences are classified in a way which aids the understanding of performance, and which
facilitates improvement.
The gap is not between the current position of the business and the desired future position. It is the gap between the position
forecast if the business continues with current activities, and the desired future position as set out in the strategic objectives.
Gap analysis is based on two questions.
1. What are the business's objectives?
2. What would the business be expected to achieve if it 'did nothing' – it did not develop any new strategies, but simply carried on
in the current way with the same products and selling to the same markets?
This difference is the gap. New strategies should close this gap, so that the business can expect to achieve its objectives.

 The business estimates the effects on the gap

of any projects or strategies in the pipeline.
Some of the gap might be filled by a new
project already underway
 Then, if a gap remains, new strategies have to
be developed to close it