Strategic Planning by SWOT Analysis

A complete set of vocabulary flashcards based on the lecture notes about Strategic Planning and SWOT Analysis methodology, including internal/external factors and strategic matrices.

Strategic Planning

The process of an organization defining its direction, making decisions, and allocating its resources to attain goals.

SWOT analysis

A planning methodology that helps an organization to develop a full awareness of all factors involved in making a business decision by identifying strengths, weaknesses, opportunities, and threats.

Strengths

Internal characteristics and factors of an organization that have a positive implication, add value, or offer a competitive advantage over competitors.

Weaknesses

Internal characteristics within a business that give disadvantages relative to its competitors or detract from the value of its services or products.

Opportunities

Elements in a company's external environment that give an organization opportunities for competitive advantages, often arising from market trends or changes in social patterns.

Threats

External factors to an organization that could negatively affect organizational performance or render it relative competitive disadvantages.

Internal factors

Resources and experience readily available and within control of the organization, categorized as strengths (S) and weaknesses (W).

External factors

Dynamics typically outside of a company's control, such as market trends, economic trends, demographics, and political environments, categorized as opportunities (O) and threats (T).

Financial Resources

An internal factor of SWOT including funding, sources of income, and investment opportunities.

Physical resources

An internal factor of SWOT including location, facilities, and equipment.

SO (Strengths-Opportunities) strategies

Strategies that use a firm's internal strengths to take advantage of external opportunities.

WO (Weaknesses-Opportunities) strategies

Strategies aimed at improving internal weaknesses by taking advantage of external opportunities, such as hiring and training people with required technical capabilities.

ST (Strengths-Threats) strategies

Strategies that use a firm's strengths to avoid or reduce the impact of external threats.

WT (Weaknesses-Threats) strategies

Defensive tactics directed at reducing internal weaknesses and avoiding external threats.

Matching

A strategy to combine internal strengths with external opportunities to reap benefits or gain competitive advantage.

Converting

A strategy that changes weaknesses or threats of an organization into strengths or opportunities, or minimizes them.

Step 1 (SWOT Analysis)

The collection and evaluation of key data, such as population demographics, community health status, and funding sources.

Step 2 (SWOT Analysis)

Sorting data into the four specific categories: strengths, weaknesses, opportunities, and threats.

Step 3 (SWOT Analysis)

The development of a SWOT matrix by arranging factors into four groups of strategies (SO, WO, ST, and WT).

Step 4 (SWOT Analysis)

Developing action plans by matching or converting existing situations to favorable plans.