SWOT Analysis is a commonly used strategic management framework which scans internal strengths and internal weaknesses of a product or service industry and highlights the opportunities and threats of the external environment. This will help to focus on the strengths, minimize weaknesses and take the greatest possible advantage of opportunities available by overcoming threats. SWOT Analysis becomes a useless exercise if it is not extended to TOWS Analysis where the strengths are used to capitalize on opportunities and to counter threats and, the weaknesses are minimized using opportunities and both weaknesses and threats are avoided. Read More: SWOT Analysis — A Strategic Planning Tool Weihrich developed TOWS Matrix in 1982, as the next step of SWOT Analysis in developing alternative strategies. TOWS Matrix is a conceptual framework for identifying and analyzing the threats (T) and opportunities (O) in the external environment and assessing the organization’s weaknesses (W) and strengths (S). Continue reading
Strategic Management
Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It involves the systematic identification of specifying the firm’s objectives, nurturing policies and strategies to achieve these objectives, and acquiring and making available these resources to implement the policies and strategies to achieve the firm’s objectives. Strategic management, therefore, integrates the activities of the various functional sectors of a business, such as marketing, sales, production etc. , to achieve organizational goals. It is generally the highest level of managerial activity, usually initiate by the board of directors and executed by the firm’s Chief Executive Officer (CEO) and executive team.
Becoming a Successful Learning Organisation: Case Study of Apple
When faced with the challenges and difficulties in business environment nowadays, business need to improve knowledge continuously to survive and remain competitive with other business. Meanwhile, “learning organization” and “best practices” are two important concepts that can help businesses succeed. From an unknown organization has now become a famous brand with business strategy, the way in breaking success, Apple is one of the business organization encourages continuous personal learning to be able to overcome difficulties in the market today. We should study how organizations learn and practice such as Apple to see the strategic vision and ways of doing business that many companies in the world by surprise. How does Apple become a Learning Organization? Learning organization is one that sought to create their own future, said that learning is a continuous process and innovation for its members, and one in which the development, adaptation, and transform itself to meet Continue reading
GE/McKinsey Matrix
GE/McKinsey Portfolio Matrix Model GE/McKinsey Matrix is the business portfolio framework developed by General Electric with the help of McKinsey and Company, an American global management consulting firm. GE Business Screen includes nine cells based on long-term industry attractiveness and business strength/competitive position. Factors that Affect Market Attractiveness: There are several factors which can help determine attractiveness. These are listed below: Market Size Market growth Market profitability Pricing trends Competitive intensity / rivalry Overall risk of returns in the industry Opportunity to differentiate products and services Segmentation Distribution structure (e.g. retail, direct, wholesale) Factors that Affect Competitive Strength: There are several factors which can help determine the business unit strength. These are listed below: Strength of assets and competencies Relative brand strength Market share Customer loyalty Relative cost position (cost structure compared with competitors) Distribution strength Record of technological or other innovation Access to financial and other investment resources Continue reading
Evaluation of Porter’s Diamond Model
In the globalization era, we observed an increment of multinational corporations as well as small businesses that aim to internationalize. Those, in order to be successful in their internationalization process, try to find abroad a location that fits them the most institutionally, culturally and opportunities wise. To make this happen, MNCs uses home and host location strategies which reflect to international business theories through different models. Those models assess external environment analysis of a specific country and explain the concepts used behind the chosen location. Out of the many useful models explaining location strategies used by international companies, this article will focalize on the Diamond Model and discuss whether is a useful concept for international firms to pursue the best entry mode and furthermore argue the advantages and disadvantages through the examination of a real case example such as the multinational IKEA. The Diamond Model was introduced in the book Continue reading
Business Turnaround Strategies
When a firm has experienced a serious decline in its market position, it is a candidate to mount an all-out effort to turn the firm around and improve its market position. Use of a turnaround strategy appears to be most appropriate when the firm’s decline is caused by internal actions such as improper strategy selection or poor implementation and execution of a workable. If the analysis indicates the firm’s present strategy is appropriate, then the problem is poor implementation. If the analysis indicates the firm’s present strategy is inappropriate, then the problem is improper strategy selection. Turnaround strategies attempt to revitalize businesses in a slump. They involve a combination of cost-cutting measures and revenue-enhancing strategies. Before a firm elects a turnaround strategy, two questions should be asked: Does the firm have the capabilities to earn an acceptable level of profits in the future? Will the firm’s value after a successful Continue reading
Contemporary Forms of Organizational Design
Organizational design is the overall configuration of structural components that defines jobs, groupings of jobs, the hierarchy, patterns of authority, approaches to co-ordination and line-staff differentiation into a single and unified organizational system. Consider, for example, the differences in organizational design that might exist between a computer manufacturer and university. Since the computer manufacturer has to respond to frequent technological breakthroughs and changes in its competitive environment, it is likely to have a relatively flat and decentralized design whereas the university has a more stable environment and is less affected by technology. Therefore, it has a more centralized structure with numerous rules and regulations. Every organization has its own unique design depending on its technology, limits and potentials of its environment and the life cycle stage it follows. Following are the various contemporary forms of organizational design: 1. The U-Form Organization In the U-form organization. U stands for Unity, It Continue reading