adminof control over.
If you do an analysis of these, you are most likely going to find ways in which you create your own customised business model that aligns to the resources that you have, the capabilities that you have and the expertise that you have.
By doing a Strengths Weaknesses Opportunities and Threats (SWOT) analysis, you have the power to build a foundation to evaluate the internal potential and limitations and the likely opportunities and threats from the external environment.
This falls into the category of a James Bond character who is planning a mission.
I have often advised people to use the SWOT analysis twice a year to discover key internal and external issues that need to be refreshed to gain competitive advantage over your competitors.
Your strengths
If you, for instance, have the strength of being the first mover advantage, as a strategic alternative you might need to maintain your position as a price leader.
If you are like some of these banks or mobile phone companies with nationwide network coverage, you have the opportunity to maintain your high market share.
I have had the experience of working with organisations that have strong shareholder support, be sure to use that as a leverage to negotiate internal adjustments.
Some companies are known for presenting good career prospects to prospective employees. These end up attracting the cream of qualified professionals.
What this does is that it places the organisation into a sphere of knowledge gathering and management.
Maximise on this, this could be an excellent source of competitive advantage. These are the basis on which continued success can be made and sustained. Strengths can be either tangible or intangible.
Strengths are what you are well versed in or what you have expertise in, the traits and qualities your employees possess and the distinct features that give your organisation its consistency.
Your weaknesses
Weaknesses are the factors which do not meet those standards that you feel should be met.
These are inherent qualities that act as a deterrent in achieving and accomplishing your full potential.
For instance, if you are aware that you have old infrastructure, you could think of having innovative refurbishment programmes as a strategic alternative.
If you find yourself in a precarious position where you have inadequate capital, it could be wise to continue to lobby vigorously for a cost reflective pricing model.
Companies that have a poor rewarding system have bridged that gap by introducing employee retention schemes as a way of cushioning the employee and this has reaped acceptable results.
In extreme cases of huge debt, solutions for liquidation have been sought. These include debt restructuring which has been an effective solution.
It has proved easier for some companies that have a weak balance sheet to restructure their balance sheet by introducing various alternatives of managing working capital.
The opportunities
The environment within which your organisation operates presents you with opportunities.
If an organisation takes benefit of conditions in its environment, it can realise the profits of being so.
A large potential customer base must be supported by adequate supplies. If you are a company that has an opportunity of doing backward integration, take that opportunity and put measures that ensure consistent of supply to your core business.
Avoid falling into the trap of overstretching your capabilities by pouring resources into non-core activities. Try empowering the non-core companies to grow and capture markets outside your Group.
Your Threats
Threats are largely uncontrollable. When a threat comes, the stability and survival of a business can be at stake.
Examples of threats are: unrest among employees; ever changing technology; increasing competition leading to excess capacity; price wars and reducing industry profits.
In some industries, vandalism has been on the rise and there is therefore need to come up with more stringent legislation and policing to curb it.
In the environment of market liberalisation, there is bound to be an increase in competition. A strategic alternative to be employed could be the first mover advantage to beat off competition.
A phenomenon that has double sided effects is when companies form strategic alliances with potential competitors.
Introducing staff retention schemes may curb the brain drain syndrome affecting mainly our health sector.
HIV/Aids is a real threat to the stability of business and there is need to carry out awareness campaigns and further provide support to the infected and affected.
SWOT analysis does have limitations, but the benefits far outweigh them!
Till next week, may God richly bless you!
Shelter Chieza is an advisor in management issues. She can be contacted on [email protected]
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