SWOT/TOWS Analysis McMillan Matrix

1
SWOT/TOWS AnalysisMcMillan Matrix
2
First Step

• Assess your Organization
• Assess your Environment

3
What to See in Your Organization

• The Men
• The Money
• The Machines
• The Methods

4
What to See in the Environment

• Political issues and government policies
• Economic Trends and Changing Donors Preferences
• Social and Cultural Trends
• Technological Changes

5
SWOT

• Factors affecting the organizations can be
  divided into four categories
• Internal Factors that can help the organization
  Strengths
• Internal Factors that can harm an organization
  Weaknesses
• External Factors that can help the organization
  Opportunity
• External Factors that can harm the organization
  Threats

6
SWOT
7
By Government Departments
8

• Now you know your organization and the
  environment it is working in,
• Now how to use it!!!
• Do a TOWS.

9
Strengths Availability of Time Good Reputation of Researcher Links with Ministry Weakness No links in other parts of the Government. Small Skill base Little alternative in case of absentees.
Opportunities Working on topical issue. Government support to NGO. NGO support. Maxi Max Mini Max
Threats Reaction to Report. Chances of Nullification of Findings by Government Departments Maxi Min Mini Min
10
The WT Strategy (mini-min)

• In general, the aim of the WT strategy is to
  minimize both weaknesses and threats.
• An organization faced with external threats and
  internal weaknesses may indeed be in a precarious
  position.
• In fact, such a firm may have to fight for its
  survival or may even have to choose liquidation.
• But there are other choices.
• For example, such a firm may prefer a merger, or
  may cut back its operations, with the intent of
  either overcoming the weaknesses or hoping that
  the threat will diminish over time (too often
  wishful thinking).
• Whatever strategy is selected, the WT position is
  one that any firm will try to avoid.

11
The WO Strategy (mini-max)

• The second strategy attempts to minimize the
  weaknesses and to maximize tile opportunities.
• A company may identify opportunities ill the
  external environment but have organizational
  weaknesses which prevent the firm from taking
  advantage of an opportunity. For example, lack of
  Skills/technology in certain areas.
• One possible strategy would be to acquire this
  Skills/technology through cooperation with a firm
  having competency in this field.
• An alternative tactic would be to hire and train
  people with the required technical capabilities.
• Of course, the firm also has the choice of doing
  nothing, thus leaving the opportunity to
  competitors.

12
The ST Strategy (maxi-min)

• This strategy is based on the strengths of the
  organization that can deal with threats in the
  environment. The aim is to maximize the former
  while minimizing the latter.
• This, however, does not mean that a strong
  organization can meet threats in the external
  environment head-on.

13
The SO Strategy (maxi-max)

• Any company would like to be in a position where
  it can maximize both, strengths and
  opportunities.
• Such an enterprise can lead from strengths,
  utilizing resources to take advantage
• Successful enterprises, even if they temporarily
  use one of the three previously mentioned
  strategies, will attempt to get into a situation
  where they can work from strengths to take
  advantage of opportunities.
• If they have weaknesses, they will strive to
  overcome them, making them strengths. If they
  face threats, they will cope with them so that
  they can focus on opportunities.

14
Macmillan Matrix

• The matrix is based on the assumption that
  duplication of existing comparable services
  (unnecessary competition) among nonprofit
  organizations can fragment the limited resources
  available, leaving all providers too weak to
  increase the quality and cost-effectiveness of
  client services.
• The matrix also assumes that trying to be all
  things to all people can result in mediocre or
  low-quality service instead, nonprofits should
  focus on delivering higher-quality service in a
  more focused (and perhaps limited) way.

15
Macmillan Matrix

• The Components of the matrix are
• Fit
• Program Attractiveness
• Alternative Coverage
• Competitive Position

16
1- Fit

• Fit is the degree to which a program belongs or
  fits within an organization. Criteria for good
  fit include
• Congruence with the purpose and mission of the
  organization
• Ability to draw on existing skills in the
  organization and
• Ability to share resources and coordinate
  activities with programs.

17
2- Program Attractiveness

• Program attractiveness is the degree to which a
  program is attractive to the organization from an
  economic perspective, as an investment of current
  and future resources (i.e., whether the program
  easily attracts resources).
• Any program that does not have high congruence
  with the organizations purpose should be
  classified as unattractive.
• No program should be classified as highly
  attractive unless it is ranked as attractive on a
  substantial majority of the criteria given on
  next slide.

18

1. High appeal to groups capable of providing
   current and future support
2. Stable funding
3. Market demand from a large client base
4. Appeal to volunteers
5. Measurable, reportable program results
6. Focus on prevention, rather than cure
7. Able to discontinue with relative ease, if
   necessary (i.e., low exit barriers)
8. Intended to promote the self-sufficiency or
   self-rehabilitation of client base

19
3- Coverage

• Alternative coverage is the extent to which
  similar services are provided.
• If there are no other large, or very few small,
  Comparable programs being provided in the
• same region, the program is classified as low
  coverage.
• Otherwise, the coverage is high.

20
4- Competitive Position

• Competitive position is the degree to which the
  organization has a stronger capability and
  potential to deliver the program than other
  agencies a combination of the organizations
  effectiveness, quality, credibility, and market
  share or dominance.
• Probably no program can be classified as being
  in a strong 3 competitive position unless it
  has some clear basis for declaring superiority
  over all competitors in that program category.

21

• Criteria for a strong competitive position
  include
• Good location and logistical delivery system
• Large reservoir of client, community, or support
  group loyalty
• Past success securing, raising funds
• Superior track record (or (image) of service
  delivery
• Large market share of the target clientele
  currently served
• Better quality service and/or service delivery
  than competitors and a better price
• Superior skill at advocacy
• Superiority of technical and organizational
  skills needed for the program
• Superior ability to communicate to stakeholders.

22
(No Transcript)