2- SWOT analysis.ppt
- 2. SWOT ANALYSIS A traditional approach to internal analysis: SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a historically popular technique through which managers create a quick overview of a company’s strategic situation.
- 3. SWOT COMPONENTS An opportunity is a major favorable situation in a firm’s environment A threat is a major unfavorable situation in a firm’s environment A strength is a resource or capability controlled by or available to a firm that gives it an advantage relative to its competitors in meeting the needs of the customers it serves A weakness is a limitation or deficiency in one or more of a firm’s resources or capabilities relative to its competitors that create a disadvantage in effectively meeting customer needs
- 5. LIMITATIONS OF SWOT ANALYSIS A SWOT analysis can overemphasize internal strengths and downplay external threats A SWOT analysis can be static and can risk ignoring changing circumstances A SWOT analysis can overemphasize a single strength or element of strategy A strength is not necessarily a source of competitive advantage
- 7. PORTFOLIO OR BCG OR GROWTH-SHARE MATRIX A portfolio matrix is a chart used to define products in terms of both the growth in their industry and their specific market share.
- 8. Growth share matrix is a portfolio planning method that evaluates a company’s products in terms of their market growth rate and relative share. Products are classified as: Stars, Cash Cows, Question marks and Dogs The BCG Matrix
- 10. Stars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows. Cash cows are low-growth, high-share businesses or products that are established; require less investment to maintain market share in a stable market. Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share. Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash. Not worth much investment.
- 11. Problems with Matrix Approaches Difficulty in measuring market share and growth Time consuming Expensive Focus on current businesses, not future planning The BCG Matrix
- 13. ORGANIZATIONAL STRUCTURE Chain of Command The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom
- 15. LINE ORGANIZATION Advantages Simple Fixed responsibility Unity of command Quick Decisions Economical Coordination Discipline Disadvantages Overloading Lack of specialization
- 17. STAFF/FUNCTIONAL ORGANIZATION Merits Specialization Increased efficiency Limited Duties Demerits Conflict in authority Expensive Lack of coordination
- 18. Line and Staff Authority Line managers have the authority to issue orders to those in the chain of command Staff managers have advisory authority, and cannot issue orders to those in the chain of command (except those in their own department)
- 19. LINE AND STAFF ORGANIZATION
- 20. LINE AND STAFF ORGANIZATION Merits Specialization Better decisions Research advancement Lesser burden on line officers Demerits Conflict Expensive More reliance on staff