Role of SWOT Analysis in Identifying Strategic Issues

1
Role of SWOT Analysis inIdentifying Strategic
Issues
2
Identifying the Strategic Issues

• Are the results accomplishing the companys
  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 companys 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
  companys resource weaknesses and vulnerabilities?

3
Stating the IssuesClearly 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.

4
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.

5
Lack of a Core Competence / Distinctive Competence
Objective/Goal/Vision
Core Competence / Distinctive Competence
Strength
Weakness
Issue
Opportunity
Threat
Competitive Force / Driving Force KSF Strategic
Group
Competitive Force / Driving Force KSF Strategic
Group
Competitive Advantage
Competitive Advantage
6
Coming up with aRecommendation

• With the issue phrased in the form of a question
• the recommendation is simply the answer to the
  question.

7
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.

8
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.

9
Lack of a Core Competence / Distinctive Competence
Objective/Goal/Vision
Core Competence / Distinctive Competence
Strength
Weakness
Issue
Opportunity
Threat
Competitive Force / Driving Force KSF Strategic
Group
Competitive Force / Driving Force KSF Strategic
Group
Competitive Advantage
Competitive Advantage
Recommendation