Strategic Planning by SWOT Analysis-.pptx

A short brief on Strategic Planning by SWOT Analysis.

1. SATRATEGIC PLANNING BY SWOT ANALYSIS Brig Gen Dr Zulfiquer Ahmed Amin M Phil, MPH, PGD (Health Economics), Advance Course HA (AIIMS, Delhi), MBBS North South University ( NSU )

2. Strategic Planning Strategic planning is an organization’s process of defining its direction, making decisions and allocating its resources to attain goals. Strategic planning is useful for organizations during any of the following circumstances:   -In the context of changing industry trends or economic market -Before the launch of a new product or branch of the business -Following a merger with another organization -Following a change in senior leadership -Before an expansion plan -Before large capital investment

3. SWOT analysis is a planning methodology that helps an organization to develop a full awareness of all the factors involved in making a business decision . It is prudent to perform a SWOT analysis before committing to any sort of company action .

4. SWOT (Acronym of Strength, Weakness, Opportunity and Threats ) analysis is a tool that identifies the strengths, weaknesses, opportunities and threats of a business. It measures what an organization can and cannot do , as well as its potential opportunities and threats .

5. Internal factors Strengths (S) and weaknesses (W) refer to internal factors , which are the resources and experience readily available and within control of the organization . Internal factors are: - Financial Resources (Funding, sources of income and investment opportunities) - Physical resources (Location, facilities and equipment) - Human resources (Employees, volunteers and target clients) -Access to natural resources, trademarks, patents and copyrights -Current processes ( Employee development programs , technologies )

6. External factors External factors are typically things company do not control like opportunity and threats . Examples are: - Market Trends (Demand for new products, technology advancements ) - Economic trends (local, national and international financial trends) - Funding (donations, legislature and other sources) - Demographics (Composition of the population) -Relationships with suppliers and partners . - Political , and economic environments.

7. Strengths A ‘strength’ is the internal factor of an organization that has a positive implication . It adds value , or offers an organization competitive advantage .

8. Weaknesses Weaknesses are those things that detract from the value of the services or products and place an organization at a disadvantage , when compared with the competitors. Answer to following questions can identify weaknesses: ● What can be improved or altered? ● What do we do badly ? ● How does our performance compare with our competitors? ● What have our customers told about our negative ? ● What should we avoid ?

9. Opportunities Opportunities arise from external sources. Combining organization’s strength with available opportunities, can give it added advantage.

10. Examples of opportunities include collaboration among healthcare organizations through the development of healthcare delivery networks , increased funding for healthcare informatics , incorporation of ICT and a dvanced technologies to improve quality and efficiency.

11. Threats are external factors to an organization that could negatively affect organizational performance . The greater is the ability to identify potential threats , the more proactive an organization can be to plan and respond to such events. Threats

12. By SWOT Analysis, managers can develop four types of strategies : 1. SO (Strengths-Opportunities) strategies. 2. WO (Weaknesses-Opportunities) strategies. 3. ST (Strengths-Threats) strategies. 4. WT (Weaknesses-Threats) strategies

13. SWOT Analysis Matrix -SO strategies use a firm’s internal strengths to take advantage of external opportunities . -WO (Weakness- Opportunities) strategies aim at improving internal weaknesses by taking advantage of external opportunities . An alternative WO strategy would be to hire and train people with the required technical capabilities . -ST (Strength- Threats) strategies use a firm’s strengths to avoid or reduce the impact of external threats . - WT (Weakness- Threats) strategies are defensive tactics directed at reducing internal weakness and avoiding external threats.

14. Matching and Converting Through a SWOT analysis , a company needs to come up with some action plans based on the findings. These are done by two methods: -Matching and -Converting ‘Matching’ is a strategy to combine internal s trengths with external opportunities to reap benefits. ‘Converting’ is a strategy that changes w eaknesses or threats of an organization into strengths or opportunities , or, to minimize it .

15. Matching uses competitive advantage to pair strengths with opportunities . Example: In the 1980s UK clothing retailer ‘Marks and Spencer’ had a strong presence in the high street and a customer base that bought on the basis of quality rather than price . M&S were able to leverage these strengths to exploit the opportunity to sell high-quality food and beverages to its customers. Thirty years later M&S is still a major player in the UK quality food and beverage market.

16. Converting means converting weaknesses or threats to strengths or opportunities . For example, Many island-based Scottish whisky distilleries were unable to expand their production facilities because of environmental or logistical issues . This weakness could be converted into a strength by stressing the artisan nature of the product and making the limited production synonymous with exclusivity . This means that they could maintain high retail prices and reasonable profits .

17. Steps in SWOT Analysis Step 1 of SWOT analysis involves the collection and evaluation of key data . Depending on the organization, these data might include population demographics , community health status , sources of healthcare funding , and/or the current status of medical technology . In Step 2 of SWOT analysis , data on the organization are sorted into four categories: strengths, weaknesses, opportunities, and threats . Strengths and weaknesses generally stem from factors within the organization, whereas opportunities and threats usually arise from external factors.

18. Step 3 involves the development of a SWOT matrix by arranging its strengths, weakness, opportunities and threats into four groups of strategies. Step 4 involves developing action plans by matching or converting the existing situations to favorable plans.