Role of SWOT Analysis in Identifying Strategic Issues StrengthsOpportunities WeaknessesThreats

Identifying the Strategic Issues Are the results accomplishing the company’s stated objectives? –If yes, what opportunities and strengths are critical in the light of key success factors? Are there opportunities that can be exploited given the company’s resource strengths and capabilities? –If no, what threats and weaknesses are critical in the light of key success factors? Are there threats that are relevant given the company’s resource weaknesses and vulnerabilities?

Stating the Issues Clearly and Precisely A well-stated issue involves such phrases as –“What should be done about …….?” –“How should …….?” –“Should the company …….?” Issues need to be precise, specific, and require an answer.

Justifying the Issues Completely An issue can be justified by… –explaining how the issue leads to or prevents goal/vision attainment; and –showing how the issue responds to a threat and/or an opportunity; and –stating how a company strength and/or weakness relates to the given threat and/or opportunity.

Issue Objective/Goal/Vision Strength OpportunityThreat Weakness Competitive Advantage Competitive Advantage Core Competence / Distinctive Competence Lack of a Core Competence / Distinctive Competence Competitive Force / Driving Force KSF Strategic Group Competitive Force / Driving Force KSF Strategic Group

Coming up with a Recommendation With the issue phrased in the form of a question… …the recommendation is simply the answer to the question.

Justifying a Recommendation How do you come up with the issue? –The issue stems from an opportunity and a strength OR a threat and a weakness. –A competitive advantage derives from a match between a strength and an opportunity. –A competitive disadvantage arises out of a weakness coupled with a threat.

Justifying a Recommendation To justify a recommendation completely… –It must be explained how it would complement a competitive advantage that derives from this strength and opportunity; OR –It must be explained how it would resolve the competitive disadvantage that arises out of this weakness and threat.

Recommendation Issue Objective/Goal/Vision Strength OpportunityThreat Weakness Competitive Advantage Competitive Advantage Core Competence / Distinctive Competence Lack of a Core Competence / Distinctive Competence Competitive Force / Driving Force KSF Strategic Group Competitive Force / Driving Force KSF Strategic Group