Accounting technicians scheme west africa
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- Formulation of Strategies
| SWOT Analysis: For strategies to be formulated an analysis of the organization's external and internal environment is necessary. The acronym SWOT stands for Strength, Weakness, Opportunities and Threats. The external environment is analysed to identify factors that constitutes opportunities and threats to the organization. Opportunities are positive trends in the external environment that help in the realization of the organization’s product is an opportunity. Threats on the other hand are negative trends to the organisation found in the external environment. An example of this is activities of competitors, legislation banning the importation of a vital raw material etc. An analysis of an organization's internal environment is necessary to determine its inherent strength and weaknesses. Strength are activities that an organization does well, while weaknesses are negative activities and inadequacies with an organisation. For example, while the possession of highly qualified staff is a strength, a limited product distribution network could be a weakness. c) Formulation of Strategies: At this stage, managers use identified Strength, Weakness, Opportunities and Threats to formulate strategies that will lead to the achievement of organisational objectives. Formulated strategies will exploit the organization's strengths and opportunities and protects organization from external threats while also correcting critical weaknesses. db Implementation of Strategies: Proper implementation of strategy is a prerequisite to an effective strategic management process. No matter how good the strategy is, improper implementation may lead to failure. Therefore proper implementation is essential. e) Evaluation: Evaluation provides the means of determining the impact of implemented strategies. The purpose of evaluation is to establish whether the strategy is working and whether adjustments are necessary. F.5 SWOT Analysis Environmental analysis can be done through a technique known as SWOT analysis which is acronym for Strengths, Weaknesses, Opportunities and Threats. Through such analysis, the strengths and weaknesses existing within the organization can be matched with the opportunities and threats operating in the external environment so that an effective strategy can be formulated. Download 3.37 Mb. Share with your friends:
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