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SWOT
Week 7
Dr Surja Datta
Learning Outcomes
External
Analysis:
Opportunitie
s and
Existin Threats Strategi Strategi Implementatio
g c c n
busines Position choice
s Internal : SWOT
model Analysis:
Strengths and Fee
Weaknesses dba
ck
Value Chain Analysis
Recap: Generic Strategies
We have learnt last week that according to Porter
(1985), there are only a few strategic choices
available to the firm- Differentiation and Cost
Leadership with Broad or Narrow focus
Procurement
Primary Activities
Output
Input
Support Activities
Do you recognise this?
Primary Activities
Output
Input
Support Activities
Where is value added here?
The Value Chain:
Primary Activities
Output
Input
Support Activities
Now, what is this all about?
The Value Chain:
Primary Activities
Output
Input
Support Activities
Recognise this logo?
The Value Chain:
Primary Activities
Output
Input
Support Activities
Uses of Value Chain
Analysis
Provides a comprehensive template to enable better
understanding of component activities in complex value
adding processes.
Facilitates detailed scrutiny of activities to ensure they are
as consistent as possible with the organisation’s strategic
intent.
Facilitates scrutiny to maximise consistency between
different elements of the chain.
Class workshop
Watch the video
An analysis of the organisation,
the market(s) it operates within,
and the external environment
Analysing the
environment
PESTEL/ STRATEGIC
SCENARIO GROUPS
Why do an internal analysis?
Understanding the key resources that shape our business
Understanding how these key resources are co-ordinated
and combined to form strategic capabilities
Identifying the strategic capabilities that differentiate the firm
from its competitors and deliver economic advantage – Core
Competences
Identifying how the core competences link to the key
drivers for change and the critical success factors
identified from the external analysis
Identifying strengths that will enable the firm to take
advantage of environmental changes
Identify weaknesses that need to be resolved
Internal Analysis:
Resource audit- Unique/ Threshold
Capability analysis- Core/ Threshold
Value chain analysis – separating the activities of the firm
and identifying the linkages where the most value is
created
Helps in
SWOT brings together all the key findings from the analysis.
Aim is to understand the implications of the analysis for
future strategy
The key issues is whether and how we can take advantage
of the opportunities and offset the threats using our strengths
and in the light of our weaknesses
SWOT Analysis
Strengths: Weaknesses:
shown here as bullets in shown here as bullets
priority order in priority order
Opportunities: Threats:
shown here as bullets shown here as bullets in
in priority order priority order
Using SWOT
A powerful presentation of the position found through
external and internal analysis
A tool for competitor comparison by constructing SWOTs of
key competitors and considering whether our strengths might
enable exploitation of their weaknesses (or vice versa!)
A direct source of strategic ideas by considering e.g. how the
strengths we have might enable taking the opportunities
(being proactive) and whether weaknesses might worsen
threats and how we might respond to the latter (competitive
aggressiveness)
Further analysis of SWOT
Internal
Strengths Weaknesses
External listed here listed here
Since then several other studies has been conducted to examine this gap
between experiment and theory.
Almost all show that humans disregard the rational solution in favor of some
notion of fairness*.
The average offers are in the region of 40-50% of the pie
About half of the responders reject offers below 30%
Briefing for Week 8
The session will be organised in the reverse order
After the P&D session, I will recap the module and provide some
tips for you to excel in your individual coursework
You should take this an final opportunity to check whether your analyses are on
the right track and the feedback should be taken on board to sharpen your
Individual coursework
Seminar Activity