Strategic Planning: Internal and External Factors Analysis

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Questions and Answers

What does the 'W' in SWOT analysis stand for?

Worries

Winsome

Weaknesses (correct)

Wins

Which of the following is NOT a category in PESTLE analysis?

Environmental

Strategic (correct)

Political

Economic

In SWOT analysis, what do 'O' and 'T' represent respectively?

Opportunities, Threats (correct)

Outcomes, Trends

Origins, Transformations

Outcomes, Thinking

What is the main purpose of SWOT analysis?

To identify internal strengths and weaknesses, and external opportunities and threats Signup and view all the answers

Which of the following is NOT a component of SWOT analysis?

Demographics Signup and view all the answers

What aspect should be cautiously considered when interpreting strategic analysis results in the public service?

Presumptions or pressures in the department Signup and view all the answers

'Threats' in SWOT analysis refer to:

Unfavourable situations in the external environment Signup and view all the answers

What is the first step in the strategic management process?

Conducting an environmental analysis Signup and view all the answers

What should strategic long-term goals and short-term objectives meet according to the text?

Specific, Manageable, Achievable, Realistic, Timely Signup and view all the answers

What does the vision of an organization help provide to its employees?

Inspiration and direction Signup and view all the answers

Which component of strategic management can lead to changes in other components of the process?

Implementation Signup and view all the answers

What should be considered when formulating a strategic plan according to the text?

'Where are we now?' 'Where do we want to go?' 'How are we going to get there?' Signup and view all the answers

What does an external audit in strategic management aim to identify?

Trends and events beyond an organization's control Signup and view all the answers

What role does the mission statement play in strategic management?

Helps measure strategic plan alignment with organization goals Signup and view all the answers

Why is strategic planning essential in organizations?

To set direction and goals for the organization Signup and view all the answers

What are the SMART criteria that long-term goals should meet according to the text?

Specific, Measurable, Achievable (acceptable), Realistic, Time bound Signup and view all the answers

How does implementing a strategy affect an organization?

From top to bottom of the organization Signup and view all the answers

Study Notes

Strategic Management

Strategic management involves identifying internal and external factors that are important to achieving an objective, aligning internal resources with external opportunities and threats, and focusing on strengths and weaknesses (internal) and opportunities and threats (external).

SWOT Analysis

A SWOT analysis is a simple tool that enables analysis of external and internal issues affecting an organization, consisting of:
- Strengths (a resource or capability that the organization has)
- Weaknesses (the lack of a resource or capability that the organization does not have)
- Opportunities (favourable situations in the external environment)
- Threats (unfavourable situations in the external environment)

External Environment

The external environment includes everything at a global, country, and industry level that might affect the attainment of goals.
External forces can be divided into six broad categories:
- Political
- Economic
- Social
- Technological
- Environmental
- Legal (PESTLE)

Internal Analysis

Internal analysis tools, such as the Seven S's, can analyze strengths and weaknesses.
Internal audit identifies and evaluates an organization's strengths and weaknesses.

Strategic Management Process

The strategic management process involves:
- Environmental analysis
- Strategy formulation
- Implementation
- Evaluation
The process is dynamic and continuous, with changes in one component potentially leading to changes in another or all other components.

Strategy Formulation

Planning involves developing a vision, a mission, and value statements.
Three important questions must be asked when formulating a strategic plan:
- Where are we now?
- Where do we want to go?
- How are we going to get there?
The vision of an organization helps to provide inspiration to its employees.
The mission statement helps to measure whether the strategic plan aligns with the overall goals of the organization.

Strategic Goals and Objectives

Strategic long-term goals and the accompanying short-term objectives should meet the SMART criteria:
- Specific
- Measurable
- Achievable (acceptable)
- Realistic
- Time-bound

Implementation and Evaluation

Implementing a strategy affects the organization from top to bottom.
The results of strategic analysis in the public service must be interpreted with caution to ensure that it is not unduly influenced by presumptions or pressures in the department to confirm a particular strategic assumption.

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Description

Learn about the importance of identifying internal and external factors in strategic planning. Understand how strengths, weaknesses, opportunities, and threats impact organizational objectives. Explore analytical tools like PESTLE for external analysis and internal analysis tools.