Strategic Planning and Business Policy 1.Should all organizations change strateg

ID: 428137 • Letter: S

Question

Strategic Planning and Business Policy
1.Should all organizations change strategies when performance declines? Explain. 2. What types of alternatives can be generated from a SWOT matrix? 3. How do a SWOT analysis and SW/OT matrix help managers in the strategic decision-making process? Strategic Planning and Business Policy
1.Should all organizations change strategies when performance declines? Explain. 2. What types of alternatives can be generated from a SWOT matrix? 3. How do a SWOT analysis and SW/OT matrix help managers in the strategic decision-making process?
1.Should all organizations change strategies when performance declines? Explain. 2. What types of alternatives can be generated from a SWOT matrix? 3. How do a SWOT analysis and SW/OT matrix help managers in the strategic decision-making process? 1.Should all organizations change strategies when performance declines? Explain. 2. What types of alternatives can be generated from a SWOT matrix? 3. How do a SWOT analysis and SW/OT matrix help managers in the strategic decision-making process? 2. What types of alternatives can be generated from a SWOT matrix? 3. How do a SWOT analysis and SW/OT matrix help managers in the strategic decision-making process?

Explanation / Answer

1. Should all organizations change strategies when performance declines? Explain.

No, all organizations cannot change their strategies when performance declines because there are various reasons of decline in performance and organization first have to analyze the factors. If reason behind decline is seasonal then they may not have to change their strategies or if there are external factors which are common for all sectors like recession in economy then also they may not have to change their strategies. Apart from that organizations have to analyze costs and benefits of changing their strategies.

2. What types of alternatives can be generated from a SWOT matrix?

A Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis is very useful tool for the analyzing the strengths and weaknesses of the business and looking at the opportunities and threats they face in their businesses. The components of a SWOT analysis –

Positive

Negative

Internal

Strengths (strengths of the firm)

Weaknesses (weakness of the firm)

External

Opportunities (What are the opportunities in the specific Industry )

Threats (What are the threats in the specific Industry )

Therefore the alternatives that can be generated from a SWOT matrix –

3. How do a SWOT analysis and SW/OT matrix help managers in the strategic decision-making process?

SWOT analysis helps the companies to plan the best way by keeping in mind of their strengths and take advantage of opportunities while reducing their risks by accurately analyzing their weaknesses. SWOT analysis and SW/OT matrix are also helpful in the selection of a strategic direction of the business as it analyses positives and negatives of both internal and external environment and gives a complete outlook of the business.

The strengths of the company are related to its internal factors like its capital, human resource, strategic location, R & D work, production unit etc.

The potential weaknesses of the company is also related to its internal factors where company needs an improvement to remain completive in business for example its product quality, its high price, its limited resources etc.

Opportunities are related to the external factor like positive market growth for the products of the company are the good opportunity for the company to plan for the business.

Threats are also related to the external factors of the business which are not in the company’s control but can adversely affect the business so an analysis is important. Examples are technological changes or shifting consumer’s behaviors.

Therefore SWOT analysis and SW/OT matrix help managers in the strategic decision-making process guide through its approach and understanding to the basic strategic management process and planning for future direction of business.