Course Code : MS-11
Course Title : Strategic Management
Assignment No. : MS-11/TMA/SEM-I/2013
Coverage : All Blocks
Note: Attempt all the questions and submit this assignment on or before 30th April, 2013 to the coordinator of your study center.
Q1. Explain how does the SWOT analysis helps in formulation of strategies for different business situations. Illustrate your answer with the help of examples. Solution: SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face. What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares. More than this, by looking at yourself and your competitors using the SWOT framework, you can start to craft a strategy that helps you distinguish yourself from your competitors, so that you can compete successfully in your market.
SWOT is an acronym that stands for "strengths, weaknesses, opportunities and threats." SWOT is an analytical tool that allows you to identify internal factors, strengths and weaknesses of your company, along with external factors, opportunities and threats. Once you have identified the various components in a SWOT analysis, you can use each item to formulate a strategy to take action.
•Identify the overall goal and purpose of the analysis. You'll want to define this clearly before beginning the SWOT analysis. For example, one objective might be to determine how to expand your business to a wider market. •Write down a list of strengths that can be attributed to your existing organization for the objective you defined in Step 1. For example, if your company has run successful marketing campaigns in the past, this may be a strength. •Write down a list of weaknesses that can be attributed to your existing organization. For example, your company may not have the manpower to complete the work that needs to be completed to expand the business. •Write down list opportunities that are external to your existing organization. These opportunities will have a positive impact on your objective. For example, if a competitor changes its focus and may no longer be a direct competitor. •Write down a list of threats that are external to your organization. For example, the economy being in a recession can be an external threat. •Analyze and write down strategies to take advantage each strengths and opportunities and to minimize weaknesses and threats. Use these strategies to take action towards your overall goal or objective
A start-up small consultancy business might draw up the following SWOT Analysis: Strengths:
•We are able to respond very quickly as we have no red tape, and no need for higher management approval. •We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers. •Our lead consultant has strong reputation in the market. •We can change direction quickly if we find that our marketing is not working. •We have low overheads, so we can offer good value to customer
Q2.An organization can choose from different types of Growth Strategies”. Explain any two of the growth strategies you have studied and highlight the conditions under which each is the most appropriate. Solution: The term strategy means a well planned, deliberate and overall course of action to achieve specific objectives. According to chandler, “strategy is the determination of the basic long term goals and objectives of an enterprise and the adoption of...