INDUSTRY ANALYSISINDUSTRY ANALYSIS A firm operates in an industryA firm operates in an industry

You need to compare your company’s operations with You need to compare your company’s operations with others especially your best-in-class rivalsothers especially your best-in-class rivals

Look at the current level of competition, technologies Look at the current level of competition, technologies employed, the influences/forces from other industrial employed, the influences/forces from other industrial stakeholders, and Key Success Factors of your chosen stakeholders, and Key Success Factors of your chosen industry among other key issues.industry among other key issues.

Look at the key sectors in the industry in Look at the key sectors in the industry in relation to;relation to;

CustomersCustomers Suppliers Suppliers CompetitorsCompetitors

Industrial trends in line with your industry’s life cycle Industrial trends in line with your industry’s life cycle from introduction to decline stage should be looked at from introduction to decline stage should be looked at in line your goals and objectives, your strategy, and in line your goals and objectives, your strategy, and your competitors stage in this cycle.your competitors stage in this cycle.

Customers:Customers: Who are they in terms of characteristics Who are they in terms of characteristics

and behaviours?and behaviours? How manageable are their needs, How manageable are their needs,

wants ,expectations, tastes and preferences?wants ,expectations, tastes and preferences? Why do they buy/what they value most?Why do they buy/what they value most? When/how do they buy?When/how do they buy? Where do they buy?, etcWhere do they buy?, etc Do all these trends/factors/developments Do all these trends/factors/developments

favor/benefit us (opportunities) or really favor/benefit us (opportunities) or really scare/are against us (threats)?scare/are against us (threats)?

Suppliers;Suppliers; Do we have alternative sources of Do we have alternative sources of

suppliers?suppliers? Can we rely on these suppliers to Can we rely on these suppliers to

provide our needed inputs in the provide our needed inputs in the right quantities ,quality, at the right right quantities ,quality, at the right time and place?time and place?

If the answer is yes , those are If the answer is yes , those are opportunities. While no shows a opportunities. While no shows a threat (s)threat (s)

What are their costs?What are their costs? What are their terms of delivery and/or What are their terms of delivery and/or

payment?payment? How powerful are they?How powerful are they? What is their rate of entry and exit?What is their rate of entry and exit? Which supplier is the best?Which supplier is the best? Which supplier (s) will give us competitive Which supplier (s) will give us competitive

advantages (opportunities) or not/scare advantages (opportunities) or not/scare us( threat)?us( threat)?

Competitors;Competitors; How many competitors of our size How many competitors of our size

and competence are we facing? Few-and competence are we facing? Few-opportunity, many-threatopportunity, many-threat

What market share do they What market share do they hold/how strong are they? hold/how strong are they? Smaller/weaker-opportunity, Smaller/weaker-opportunity, Big/strong- threatBig/strong- threat

Cost of the available substitutes? Cost of the available substitutes? Find outFind out

What are their competitive behavior? What are their competitive behavior?

Friendly/cooperative- Opportunity, Un Friendly/cooperative- Opportunity, Un

friendly-Threatfriendly-Threat

What are the entry and exit barriers for What are the entry and exit barriers for

these competitors? Easy for new rivals to these competitors? Easy for new rivals to

join but difficult for the current ones to join but difficult for the current ones to

leave the industry-threat, Difficult to enter leave the industry-threat, Difficult to enter

but easy to exit-favorable/opportunitybut easy to exit-favorable/opportunity

Before joining an industry, a firm Before joining an industry, a firm should consider;should consider;

Industry size, structure, Industry size, structure, profitability, long term profitability, long term attractiveness, life cycleattractiveness, life cycle

Competitive situation analysisCompetitive situation analysis

Level of technology in the Level of technology in the industryindustry

Competitive position of the Competitive position of the firmfirm

Ease of entry in the industryEase of entry in the industry

Michael Porter’s modelMichael Porter’s model Michael E. Porter of the Harvard Business Michael E. Porter of the Harvard Business

School developed this framework which helps School developed this framework which helps managers with the task of analyzing the managers with the task of analyzing the competitive forces in an industry in order to competitive forces in an industry in order to identify the opportunities and threats identify the opportunities and threats confronting their company (ies).confronting their company (ies).

To him the stronger the 5 competitive forces, the To him the stronger the 5 competitive forces, the more serious the threat and vise versa because you more serious the threat and vise versa because you can not increase prices anyhow meaning the profits can not increase prices anyhow meaning the profits are being depressedare being depressed

However through strategic change you can alter the However through strategic change you can alter the strengths of such forcesstrengths of such forces

Cont-Cont-

Need to understand the forces in the Need to understand the forces in the industry, their impact/seriousness, how industry, their impact/seriousness, how and when they benefit or be against and when they benefit or be against you, and their sources.you, and their sources.

Confirm which forces favour your Confirm which forces favour your business success (opportunities) or business success (opportunities) or scare your business success (threats) scare your business success (threats)

Suggests five competitive forces;Suggests five competitive forces;Rivalry within the industryRivalry within the industry

Threat of new entrantsThreat of new entrants

Threat of substitute productsThreat of substitute products

Bargaining power of buyersBargaining power of buyersBargaining power of suppliersBargaining power of suppliers

Relevancy and Limitations Relevancy and Limitations LimitationsLimitations Limited availability of the required information i.e Limited availability of the required information i.e

high level of secrecy in government bodies and high level of secrecy in government bodies and some business associationssome business associations

The available information may not be up-to-date, or The available information may not be up-to-date, or be irrelevant or even inaccuratebe irrelevant or even inaccurate

The model ignores other trends like changes in The model ignores other trends like changes in demand, technology used in production, and the demand, technology used in production, and the market growth/attractivenessmarket growth/attractiveness

Points to notePoints to note External environmental analysis is aimed at External environmental analysis is aimed at

identifying/anticipating opportunities and threatsidentifying/anticipating opportunities and threats Opportunities/external friends are favourable factors( Opportunities/external friends are favourable factors(

trends/developments/unruly forces) in the external trends/developments/unruly forces) in the external environmentenvironment

Threats/external enemies are unfavourable trends/factors in Threats/external enemies are unfavourable trends/factors in the external environmentthe external environment

You not only end at external environmental analysis because You not only end at external environmental analysis because in order to competitively face such challenges, you should in order to competitively face such challenges, you should know your strengths and weaknesses through know your strengths and weaknesses through organizational/internal analysisorganizational/internal analysis

ORGANIZATIONAL ORGANIZATIONAL ANALYSISANALYSIS

The central challenge of using our managerial The central challenge of using our managerial competences to create particular/specific competitive competences to create particular/specific competitive advantage (s)-In terms of financial performance, advantage (s)-In terms of financial performance, individual departmental capabilities, appropriateness of individual departmental capabilities, appropriateness of our organizational structure, goal contract, customer our organizational structure, goal contract, customer value adding activities, identifying/anticipating value adding activities, identifying/anticipating performance gaps etcperformance gaps etc

You should examine the competence/incompetence of You should examine the competence/incompetence of your functional areas / departments in relation to your your functional areas / departments in relation to your competititorscompetititors

Identify those critical strengths and weaknesses in each Identify those critical strengths and weaknesses in each of these departments (functional analysis)of these departments (functional analysis)

1)Financial Performance Analysis1)Financial Performance Analysis

Basing on the financial ratios from the trend analysis, has our Basing on the financial ratios from the trend analysis, has our financial standing improved or deteriorated over time? What is financial standing improved or deteriorated over time? What is the financial health of our business?the financial health of our business?

Are we financially stronger compared to our rivals in the Are we financially stronger compared to our rivals in the industry at this point in time? If so, can we continue industry at this point in time? If so, can we continue maintaining this position? Key stakeholders need to be sure of maintaining this position? Key stakeholders need to be sure of this before deciding to/continuing to deal with.this before deciding to/continuing to deal with.

You have to combine leverage, liquidity, activity, and You have to combine leverage, liquidity, activity, and profitability ratios in order reasonably establish your firm’s profitability ratios in order reasonably establish your firm’s financial standing and performancefinancial standing and performance

ContinuationContinuation You can not fully rely on financial ratio analysis because;You can not fully rely on financial ratio analysis because;

1.1. The analysis is based on past records which rarely consider The analysis is based on past records which rarely consider the currently situation on groundthe currently situation on ground

2.2. Different organizations use/follow different accounting Different organizations use/follow different accounting standards and procedures even when using ISs (in standards and procedures even when using ISs (in determining materiality) determining materiality)

3.3. Bases on quantitive data ignoring qualitative dataBases on quantitive data ignoring qualitative data4.4. The source documents may not be accurate hence giving a The source documents may not be accurate hence giving a

wrong picturewrong picture

2)Functional Area Analysis2)Functional Area Analysis

Key activities of the company’s function areas Key activities of the company’s function areas have to be analyzed to identify those areas have to be analyzed to identify those areas where we are performing well (strengths), and where we are performing well (strengths), and where we need to improve (weaknesses)where we need to improve (weaknesses)

BBarriers between departments should be arriers between departments should be avoided for synergyavoided for synergy

Both resource &competence- related tangible Both resource &competence- related tangible and intangible factors should be considered and intangible factors should be considered

Marketing DepartmentMarketing Department Responsible for identifying, anticipating,& satisfying the Responsible for identifying, anticipating,& satisfying the

right customer needs and expectations.right customer needs and expectations.

Market share (strength & competitiveness in the market), Market share (strength & competitiveness in the market), and size of our loyal customer/corporate account base?and size of our loyal customer/corporate account base?

Our marketing information systems’ efficiency Our marketing information systems’ efficiency &effectiveness?&effectiveness?

Level of market research and development (in relation to Level of market research and development (in relation to customers, markets, & competitors)customers, markets, & competitors)

Product/brand positioning & corporate image?Product/brand positioning & corporate image? Branding and packaging (are they unique and preferred Branding and packaging (are they unique and preferred

by our target customers?)by our target customers?)

Customer service/care and customer Customer service/care and customer loyalty programs? Doing it well-loyalty programs? Doing it well-strength, Need to improve-weaknessstrength, Need to improve-weakness

Promotion effectiveness? Giving us Promotion effectiveness? Giving us competitive advantages-strengths, a competitive advantages-strengths, a competitive disadvantage to us-competitive disadvantage to us-weaknessweakness

Appropriateness of our pricing Appropriateness of our pricing strategies to our customers?strategies to our customers?

Appropriateness of our distribution Appropriateness of our distribution channels?channels?

EtcEtc

Finance and AccountingFinance and AccountingResponsible for ensuring the Responsible for ensuring the

financial soundnessfinancial soundness Financial strengths and stability Financial strengths and stability

(financial ratios)?(financial ratios)? Financial planning capabilities Financial planning capabilities

(strengths), incapability (strengths), incapability (weakness) ? (weakness) ?

Finance & A/cing-continuesFinance & A/cing-continues

We avoid some taxes without evading taxes We avoid some taxes without evading taxes (strength), dealing mainly in taxable transactions (strength), dealing mainly in taxable transactions (weakness)(weakness)

We can raise additional capital when needed by We can raise additional capital when needed by appropriately balancing own vs debt sources appropriately balancing own vs debt sources (strength), if not (weakness)(strength), if not (weakness)

Accuracy, Completeness, and Timeliness of Accuracy, Completeness, and Timeliness of financial statements/reports?financial statements/reports?

How good are our relationships with our How good are our relationships with our stockholders?stockholders?

Human Resource Dept.Human Resource Dept. Responsible for attracting and maintaining the right/competent Responsible for attracting and maintaining the right/competent

(and compatible) human resources / employees and managers in (and compatible) human resources / employees and managers in the right positions, at the right time, for achieving organizational the right positions, at the right time, for achieving organizational goalsgoals

Organization structure, climate, and culture give us a competitive Organization structure, climate, and culture give us a competitive advantage (strengths)-inappropriate to the company’s strategic advantage (strengths)-inappropriate to the company’s strategic direction (weakness)direction (weakness)

We have qualified and experienced/competent staff who are We have qualified and experienced/competent staff who are compatible with our business (strengths), compatible with our business (strengths), unqualified/inexperienced/incompatible staff who need training or unqualified/inexperienced/incompatible staff who need training or to be transferred (weaknessto be transferred (weakness

Is the staff morale enough, sense of goal contract, and team work?Is the staff morale enough, sense of goal contract, and team work?

Stable workforce/is our labour turn over low?Stable workforce/is our labour turn over low?

Conti-Conti-

Our staff are proud of working for our Our staff are proud of working for our organization-strength, if not-weaknessorganization-strength, if not-weakness

Productivity of staff/our record for Productivity of staff/our record for achieving objectives compared to our achieving objectives compared to our rivals? Better-OPP, Poor-Weaknessrivals? Better-OPP, Poor-Weakness

Is there an ‘HR Strategic Fit’ ? ,i.e are Is there an ‘HR Strategic Fit’ ? ,i.e are our HR policies and programs our HR policies and programs compatible with our human capital? compatible with our human capital? Core competence-OPP, No fit-WeaknessCore competence-OPP, No fit-Weakness

Production and operationsProduction and operations Responsible for turning the product design/ideas/raw materials into the Responsible for turning the product design/ideas/raw materials into the

right finished products (services) to be sold to our customers. right finished products (services) to be sold to our customers. Benchmark with WCM practices or even trend set.Benchmark with WCM practices or even trend set.

Are we producing high quality products/operating at lower overall costs Are we producing high quality products/operating at lower overall costs compared to our rivals?compared to our rivals?

How efficient and effective are our production processes, systems, and How efficient and effective are our production processes, systems, and strategies?strategies?

Can we produce the required capacity to meet our customers’ demand Can we produce the required capacity to meet our customers’ demand (s)?(s)?

Strategic location and layout of facilities (the plant, offices, equipment, Strategic location and layout of facilities (the plant, offices, equipment, raw materials, information, etc)?raw materials, information, etc)?

Plant and equipment maintenance (including its age)Plant and equipment maintenance (including its age)

Inventory control systems/relationship with our Inventory control systems/relationship with our suppliers?suppliers?

Quality control measures-are they customer Quality control measures-are they customer oriented?oriented?

Do we have a high (weakness) or low level Do we have a high (weakness) or low level (strengths) of rejects?(strengths) of rejects?

Flexibility in operations-do we have alternatives Flexibility in operations-do we have alternatives like generators, a pool of casual staff, compatible like generators, a pool of casual staff, compatible staff, and alternative systems of production?staff, and alternative systems of production?

Are our lead times especially during peak Are our lead times especially during peak periods? Delays-weakness, quick service-strengthperiods? Delays-weakness, quick service-strength

TASK:TASK: Analyze the following;Analyze the following; Procurement and supplies dept.Procurement and supplies dept. Research and developmentResearch and development Top management’s/CEO’s/General Manager’s Top management’s/CEO’s/General Manager’s

DepartmentDepartment IT/Information systems departmentIT/Information systems department Other units in case of Other units in case of

product/customer-based/market/project product/customer-based/market/project organizational structures.organizational structures.

Etc.Etc.

Procurement & Supplies DeptProcurement & Supplies Dept

Securing products and services at the right quality, Securing products and services at the right quality, quantity, price, place, and from the right sourcesquantity, price, place, and from the right sources

How high/low are our procurement costs (e.g. cost per How high/low are our procurement costs (e.g. cost per order or overall procurement costs)?order or overall procurement costs)?

What is / is our relationship with our core suppliers What is / is our relationship with our core suppliers improving?improving?

Are we effectively controlling our supply chain?Are we effectively controlling our supply chain? Is our procurement documentation accurate enough for Is our procurement documentation accurate enough for

auditing purposes?auditing purposes? How much procurement bypasses the department/is done How much procurement bypasses the department/is done

out of contract/is there appropriate contract compliance? out of contract/is there appropriate contract compliance?

ContinuationContinuation

If we are using e-procurement, how are those ICTs If we are using e-procurement, how are those ICTs interoperated/compatible with our other procurement interoperated/compatible with our other procurement systems?systems?

After placing in a requisition, how long does it take to After placing in a requisition, how long does it take to receive the goods?receive the goods?

Can the system used provide management with real-Can the system used provide management with real-time visibility of the procurement activities?time visibility of the procurement activities?

Does the system ensure Corporate governance Does the system ensure Corporate governance (transparency, accountability, disclosure, and trust)?(transparency, accountability, disclosure, and trust)?

3)Portfolio Analysis (PA)3)Portfolio Analysis (PA) A biz portfolio may be any a A biz portfolio may be any a

brand/branch/budget/product division/income brand/branch/budget/product division/income generating assetgenerating asset

PA is usually applied to firms with multiple SBUs (more PA is usually applied to firms with multiple SBUs (more than one product/services, customer categories, than one product/services, customer categories, markets , divisions)markets , divisions)

Helps managers to in taking decisions regarding which Helps managers to in taking decisions regarding which SBUs to allocate more or less resources to at a given SBUs to allocate more or less resources to at a given strategic timestrategic time

A firm should always strive to not only to A firm should always strive to not only to diversify/retrench but to also have a balanced portfolio diversify/retrench but to also have a balanced portfolio (minimize risk and maximize return) of all portfolios(minimize risk and maximize return) of all portfolios

Portfolio Analysis Models:Portfolio Analysis Models: The B.C.G model (Growth/Share matrix)The B.C.G model (Growth/Share matrix)

The G.E Multi-factoral model (competitive The G.E Multi-factoral model (competitive

strengths/Attractiveness matrix)strengths/Attractiveness matrix)

Contribution Margin Analysis (how much profit Contribution Margin Analysis (how much profit

margin does that biz portfolio contribute?)margin does that biz portfolio contribute?)

Question Question marksmarks

Cash cowsCash cows DogsDogs

Industry/ market

growth rate

Relative market share

High

Low

The BCG(Boston Consulting Group) model

High Low

Stars

Industry/ market

attractiveness

Competitive Strengths

High

Low

The GE model

Strong Average

Medium

Weak

Determinants of industry attractivenessDeterminants of industry attractiveness

Market growth Market growth and sizeand size

Industry Industry profitabilityprofitability

SeasonalitySeasonality Porter's five forces Porter's five forces

Technology & Technology & Capital Capital requirementsrequirements

Economies of scaleEconomies of scale Emerging Emerging

opportunities and opportunities and weaknessweakness

etcetc

Determinants of competitive strengthsDeterminants of competitive strengths

Relative Relative market sharemarket share

Production Production capacitycapacity

Company Company Image Image

Profit marginsProfit margins

TechnologicalTechnological capabilitiescapabilities

R & D strengthsR & D strengths Market and Market and

customer customer knowledgeknowledge

Employee Employee committmentcommittment

Etc.Etc.

4)Value Chain Analysis4)Value Chain Analysis

1.1. What do our current and potential customers value What do our current and potential customers value most?most?

2.2. Are our primary and supportive value chain Are our primary and supportive value chain activities creating customer value?activities creating customer value?

3.3. Primary Value Chain Activities-in bound logistics, Primary Value Chain Activities-in bound logistics, production/operations, out bound logistics, production/operations, out bound logistics, marketing and sales, after sale servicemarketing and sales, after sale service

4.4. Supportive Activities-Company infrastructure, HR Supportive Activities-Company infrastructure, HR management, procurement, value-adding management, procurement, value-adding technologytechnology

Some questions to answerSome questions to answer How can we best provide that customer value at reduced cost How can we best provide that customer value at reduced cost

and make better profits?and make better profits?

Which activities are now core or non core in relation to Which activities are now core or non core in relation to creating better customer value?creating better customer value?

Which ones are we known to have competence in/give us a Which ones are we known to have competence in/give us a competitive advantage (core competence)?competitive advantage (core competence)?

How can we strategically manage such activities either by How can we strategically manage such activities either by ourselves or through well controlled out-sourcing to ourselves or through well controlled out-sourcing to competent firms?competent firms?

Strategic Gap AnalysisStrategic Gap Analysis

A futuristic strategic gap in performanceA futuristic strategic gap in performance

Involves some proactive control/managementInvolves some proactive control/management

If it is there, what new strategies to we need to correct If it is there, what new strategies to we need to correct this gapthis gap

Adjust the tactics or change the strategy in place?Adjust the tactics or change the strategy in place?

Cont-Cont- The analysis is in stagesThe analysis is in stages1.1. Consider the past trend and project into the future in Consider the past trend and project into the future in

relation to your goal/objectiverelation to your goal/objective2.2. Why might the future trend be that way?, with Why might the future trend be that way?, with

reasons adjust your projectionreasons adjust your projection3.3. What assumptions are we basing on , and how do What assumptions are we basing on , and how do

they affect our projection?they affect our projection?4.4. If corrective action is taken, what do we now If corrective action is taken, what do we now

predict?predict?5.5. Consider other factors besides the initial oneConsider other factors besides the initial one6.6. If there is a gap, when is it likely to occur ?If there is a gap, when is it likely to occur ?

Key Success FactorsKey Success Factors

Things your company must be good/excel at in Things your company must be good/excel at in order to succeed in a given industryorder to succeed in a given industry

Premising/bench marking with those best-in-Premising/bench marking with those best-in-class rivals helps you to identify themclass rivals helps you to identify them

They differ from one industry to another under They differ from one industry to another under different conditionsdifferent conditions

Different from Key Result Areas Different from Key Result Areas

Chief ExecutivesChief Executives

Strategic level managersStrategic level managers Strategic planning and policy formulation as Strategic planning and policy formulation as

directed by the board of directorsdirected by the board of directors They also provide effective leadership , are They also provide effective leadership , are

strategic information bearer, advisers to the board strategic information bearer, advisers to the board among other rolesamong other roles

Issues to analyze may among others include;Issues to analyze may among others include;1.1. Their responsiveness and adaptabilityTheir responsiveness and adaptability2.2. Attitude to riskAttitude to risk3.3. Generic skills and experiences ,etcGeneric skills and experiences ,etc

NextNext

From the external/environmental analysis, you will From the external/environmental analysis, you will identify all the available opportunities and threatsidentify all the available opportunities and threats

From the internal/organizational analysis, you will From the internal/organizational analysis, you will identify all your internal strengths and weaknessesidentify all your internal strengths and weaknesses

Match all those results using through SWOT analysis Match all those results using through SWOT analysis remembering that some of those remembering that some of those trends/developments/changes/factors may not be of trends/developments/changes/factors may not be of significance to yousignificance to you

SWOT ANALYSISSWOT ANALYSIS Is usually required when;Is usually required when; When formulating your strategic directionWhen formulating your strategic direction Drawing strategic/business/marketing plansDrawing strategic/business/marketing plans Convincing creditors, investors, and top Convincing creditors, investors, and top

management about the firm’s future or management about the firm’s future or strategic directionstrategic direction

When making your strategic choice/when When making your strategic choice/when modifying the existing strategy or its modifying the existing strategy or its tactics/crafting (formulating) a new tactics/crafting (formulating) a new strategic strategic

Internal assessment:Internal assessment: StrengthsStrengths WeaknessesWeaknesses

External assessment:External assessment: OpportunitiesOpportunities ThreatsThreats Which of these are of important or not, Which of these are of important or not,

urgent or not, relevant or not in relation urgent or not, relevant or not in relation to your strategic direction, strategy to be to your strategic direction, strategy to be used, resources available (feasibility?), used, resources available (feasibility?), and values of top management?and values of top management?

A firm needs to:A firm needs to: Respond to / take advantage of those golden Respond to / take advantage of those golden

opportunitiesopportunities Cope with and encounter those potentially frustrating Cope with and encounter those potentially frustrating

threatsthreats Correct weaknessesCorrect weaknesses Exploit / capitalize on its strengthsExploit / capitalize on its strengths This matching of the SWOT variables/issues results This matching of the SWOT variables/issues results

into SWOT matrix that guides the appropriateness of into SWOT matrix that guides the appropriateness of your future strategic choiceyour future strategic choice

Develop a SAP chart for Strengths and weaknesses, Develop a SAP chart for Strengths and weaknesses, and an ETOP chart for Opportunities and Threatsand an ETOP chart for Opportunities and Threats

to decide on the appropriate tactics (actions) to use in to decide on the appropriate tactics (actions) to use in your chosen strategiesyour chosen strategies

A firm should single out those SWOT A firm should single out those SWOT facts that are more urgent, important facts that are more urgent, important and most likely to influence its and most likely to influence its strategy/approach to your strategic strategy/approach to your strategic direction.direction.

A firm should also match its strengths A firm should also match its strengths and weaknesses, to its opportunities and weaknesses, to its opportunities and threats in the environment in form and threats in the environment in form of a SWOT matrix.of a SWOT matrix.

Before your SWOT matrix ,ask Before your SWOT matrix ,ask yourselves internally yourselves internally

In what areas have our strengths improved within this period, In what areas have our strengths improved within this period, and to what extent?and to what extent?

Where have we managed to counter our weaknesses?Where have we managed to counter our weaknesses? In which areas of weakness are we continuously deterioting? In which areas of weakness are we continuously deterioting? Are we too weak, strong enough, or stable? Are these areas of Are we too weak, strong enough, or stable? Are these areas of

importance to us?importance to us? What can we then do with our strengths, and about our areas What can we then do with our strengths, and about our areas

of weaknesses?of weaknesses? Not ignoring those relevant Opportunities and Threats, after Not ignoring those relevant Opportunities and Threats, after

answering those relevant questions, go a head with your answering those relevant questions, go a head with your SWOT matrixSWOT matrix

OPPORTUNITIESOPPORTUNITIES

-Growing market for -Growing market for our productsour products

-Tax holidays-Tax holidays

-Competent-willing -Competent-willing supplierssuppliers

THREATSTHREATS

-Better competititors-Better competititors

-Future hostile take--Future hostile take-overover

-Political instability-Political instability

-Inferior product -Inferior product rangerange

STRENGTHSSTRENGTHS

-Strong capital base-Strong capital base

-Many loyal customers-Many loyal customers

-Competent and -Competent and customer-centered customer-centered staff staff

WEAKNESSESESWEAKNESSESES

-Low market share-Low market share

-Uncommitted staff-Uncommitted staff

-High production -High production costscosts

StrengthsStrengths WeaknessesWeaknesses

OpportunitOpportunitiesies

Using strengths to Using strengths to exploit opportunitiesexploit opportunities

Correcting Correcting weaknesses to weaknesses to exploit exploit opportunitiesopportunities

ThreatsThreats Using strengths to Using strengths to combat threatscombat threats

Correcting Correcting weaknesses to weaknesses to combat threatscombat threats

StrengthsStrengths WeaknessesWeaknesses

OpportunitOpportunitiesies

StrategiesStrategiesExpansion/Expansion/diversifyingdiversifyingControlled out-Controlled out-sourcing to such sourcing to such supplierssuppliersTax ConsultingTax Consulting

StrategiesStrategiesAcquisition of the Acquisition of the rival/team workrival/team work Use a white Use a white knight/poison pillknight/poison pillProduct Product innovations/ innovations/ developmentsdevelopments

ThreatsThreats Controlled Controlled expansionexpansionRelationship Relationship MarketingMarketing

MBOMBOOverall Cost Overall Cost LeadershipLeadership

TasksTasks Read aboutRead about

1.1. Identify the strengths and weaknesses of Identify the strengths and weaknesses of such a model using all the models above. such a model using all the models above. Use a firm of your choiceUse a firm of your choice

2.2. Discuss-understand and pass SM highly , Discuss-understand and pass SM highly , become a world class business become a world class business competititor, and put God first because competititor, and put God first because he is the best strategist.he is the best strategist.