SWOT Analysis: Swot Analysis And Strategic Management

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STRATEGIC MANAGMENT

SEMESTER: (VII) 7

SUBMITTED TO:
MAM MARYAM HINA

SUBMITTED BY:
IZZA AHSAN

QUESTION: What are following matrix explains and differentiates following
1. Strength, weakness, opportunity, threat matrix
2. Strategic position and action evaluation matrix
3. The external and internal matrix (IEM)
4. The grand strategic matrix (GSM)?
ANSWER:
SWOT (Strength, Weakness, Opportunity and Threat) Matrix
Definition/Purpose: A SWOT (Strength, Weakness, Opportunity and Threat) Matrix is used to create a compelling need to change. It is a listing of strengths and opportunities as well as the weaknesses and threats of the current and future states. It is used during the Improve phase to consider …show more content…

• Strength is a resource or capacity the organization can use effectively to achieve its objectives.
• A weakness is a limitation, fault, or defect in the organization that will keep it from achieving its objectives.
• An opportunity is any favorable situation in the organization’s environment. It is usually a trend or change of some kind or an overlooked need that increases demand for a product or service and permits the firm to enhance its position by supplying it.
• A threat is any unfavorable situation in the organization’s environment that is potentially damaging to its strategy. The threat may be a barrier, a constraint, or anything external that might cause problems, damage or injury.
Steps:
• The first part of any SWOT analysis is to collect a set of key facts about the organization and its environment.
• The second part of a SWOT analysis is to evaluate data to determine whether they constitute strengths, weaknesses, opportunities or threats for the organization. This may be done independently by the individuals in a group, results being compared …show more content…

What other threats are present in this state? What weaknesses do we predict will exist in the proposed state? What other threats are possible in this state? Are the weaknesses and threats in the current state much more significant than in the future state?

Strategic position and action evaluation matrix
The SPACE matrix is a management tool used to analyze a company. It is used to determine what type of a strategy a company should undertake. The Strategic Position & Action Evaluation matrix or short a SPACE matrix is a strategic management tool that focuses on strategy formulation especially as related to the competitive position of an organization.
The SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCG matrix model, industry analysis, or assessing strategic alternatives (IE matrix).
The four quadrants framework of SPACE Matrix represents the suitability or appropriateness of the strategies to be selected by a company such as aggressive, conservative, defensive, or competitive strategies. Organizations falling in four quadrants should adopt the strategies as follows:
Quadrant I Financial Stability and Industry Strength

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