Dynamic SWOT Analysis Abstracts

Dynamic SWOT Analysis Abstracts

Below are three abstracts from Dynamic SWOT Analysis – Developer’s Guide. These chosen sections illustrate the depth and quality of the analysis and the management of the best practice outputs.

The managers are now asked to examine the scale of the Threats and Opportunities closely and take a view on the importance of these factors in terms of their potential impact on the situation under review.

They are requested to express a view as to whether the total effect of Threats to the company are greater than the total effect of the Opportunities, or vice versa. To assist managers in reaching these decisions the following proposition is presented for them to consider and use.

If the potential impact of all the Threats are equal to the Opportunities (T=O) then this can be shown in Fig 2, the point of equal balance being halfway between Threats and Opportunities.

But if the Opportunities available to the company are considered to be greater than the Threats (O>T), the point of balance would be as shown in Fig 3.

Question 1 :- What would happen to the company’s Centre of Value if management were to do nothing to improve its position?

Comment On Possible Answers:

The Centre of Value would fall back over a period of time. As Opportunities were missed, Threats would increase due to competitor’s activities and the dissatisfaction of other stakeholders. Internal decay would take place as the organization becomes despondent through lack of new learning leadership and well considered direction concerning future prospects, i.e. further Weaknesses develop and Strengths waste away. This would result in the financial performance of the company starting to decline.

The use of concepts and models for development purposes contributes very considerably to our understanding of:-

• Ourselves,

• How effectively we work in groups,

• The environment that we work in,

and provides another dimension in our ability to articulate and communicate, i.e. a framework of visualising and transferring thoughts and ideas in the form of model diagrams and words.

Experience with large numbers of Managers, individually and in groups, working on conceptual thinking and analysis, and the application of models and concepts for development, has helped to form a number of observations which have shaped the development of the DSA Process. These observations are described below.

They are, of course, general statements and an individual’s inclination will differ according to a number of factors which affect his or her approach to learning. However, the main characteristics that have been observed are:-

Not everyone has the same ability to think conceptually, even in groups of Managers of the same level. This leads to the proposition that the models which are used should be uncomplicated and user-friendly and be task dependant for their outputs; there are no models in the Process which insinuate answers or indicate specific solutions.

Because someone may be able to interpret a model, it does not mean that they will use it flexibly and be able to customise it for their own use. All too often, models are looked upon as formulae which produce answers and not as a means of exploration and clarification.

Certainly, one of the most well known strategy models which features in most of the management text books, if it is applied prescriptively, rather than as a means of simply clarifying possibilities, would without any doubt whatsoever, sooner or later force a company into severe difficulties.

The emphasis must be on the exploration of solution options and choice in the context of the available resources.Successful development is about luck, right time, right place and good management.

Managers should be aware of all the total chemistry when using models for development and not expect one-dimensional answers.

Very rarely will Managers in an operating environment use models that are very theoretical or complex, unless they are in a consultancy or corporate role.

Managers need high quality practical tools that are flexible, are immediately accessible and produce career and company enhancing results.