Tuan Qi

Tuan Qi

Tuesday, February 2, 2010

As investor, I will measure the effectiveness of the organizational strategy, it's extremely important to conduct a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats (both internal and external) of the entity in question.
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
A model in which strategic options are evaluated against three key success criteria:

Firstly, suitability (would it work?)deals with the overall rationale of the strategy. The key point to consider is whether the strategy would address the key strategic issues underlined by the organization's strategic position.

Secondly, feasibility (can it be made to work?)is concerned with whether the resources required to implement the strategy are available, can be developed or obtained. Resources include funding, people, time and information.

Finally, acceptability (will they work it?)is concerned with the expectations of the identified stakeholders (mainly shareholders, employees and customers) with the expected performance outcomes, which can be return, risk and stakeholder reactions.
•Return deals with the benefits expected by the stakeholders (financial and non-financial). For example, shareholders would expect the increase of their wealth, employees would expect improvement in their careers and customers would expect better value for money.
•Risk deals with the probability and consequences of failure of a strategy (financial and non-financial).
•Stakeholder reactions deals with anticipating the likely reaction of stakeholders. Shareholders could oppose the issuing of new shares, employees and unions could oppose outsourcing for fear of losing their jobs, customers could have concerns over a merger with regards to quality and support.

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