SWOT Analysis Process

1. SWOT Analysis Process • Environmental Analysis • Determine Corporate Mission • Form a Strategy

2. SWOT Analysis to Strategy Formulation Mission Internal External S trengths O pportunities Strategy Internal External W eaknesses T hreats Competitive Advantage

3. Production/Operations Finance/Accounting Leverage Cost of capital Working capital Receivables Payables Financial control Lines of credit Marketing Service Distribution Promotion Channels of distribution Product positioning (image, functions) Identifying Critical Success Factors Decisions Sample Options Product Customized, or standardized Quality Define customer expectations and how to achieve them Process Facility size, technology Location Near supplier or customer Layout Work cells or assembly line Human resource Specialized or enriched jobs Supply chain Single or multiple source suppliers Inventory When to reorder, how much to keep on hand Schedule Stable or fluctuating productions rate Maintenance Repair as required or preventive maintenance

4. Critical Success FactorsMicrosoft & Compaq • They focus on one business • They are global • Their senior management is actively involved in defining and improving the product development process • They recruit and retain the top people in their fields. • They understand that speed to market reinforces product quality

5. If competitive advantage, leads to achieving Distinctive competencies affect Company Mission Business Strategy Functional Area Strategies Marketing Operations Fin./Acct. Decisions Decisions Decisions How It Works

6. Mission/Strategy/Tactics Mission Strategy Tactics How does mission, strategies and tactics relate to decision making and distinctive competencies?

7. Strategy • Mission • The reason for existence for an organization • Mission Statement • A clear statement of purpose • Strategy • A plan for achieving organizational goals • Tactics • The actions taken to accomplish strategies

8. Strategy Example Rita is a high school student. She would like to have a career in business, have a good job, and earn enough income to live comfortably Mission: Live a good life • Goal: Successful career, good income • Strategy: Obtain a college education • Tactics: Select a college and a major • Operations: Register, buy books, take courses, study, graduate, get job Example 3

9. Planning and Decision Making Figure 2-3 Mission Goals Organizationalstrategy Functional strategies Finance Marketing Operations Tactics Tactics Tactics Operations operations Finance operations Marketing operations

10. 7. Resistance to Change

11. B. PROCESSES AND TOOLS • The process of Organization Development • Collecting and Analyzing Diagnostic Information • The four major techniques for gathering diagnostic data are: • questionnaires, interviews, observations, and unobtrusive methods. • The following table is presented to better understand the • advantages and disadvantages of each method.

13. ii. Feeding Back Diagnostic Information This step refers to the organization of the data collected. This has to be clear and accurate to be used as the basic information for designing appropriate action plans iii. Managing Change Once the diagnosis has been made and the main problems have been detected, the implementation of changes is necessary. This step is fundamental to overcome the organization's troubles

14. Five activities should be implemented in the managing change process: • Motivating change. This includes creating readiness for change and overcoming resistance to change. It is to create an appropriate organizational environment to start the process of change. • 2. Creating a vision.This step aims to create directions for evaluating the process. • 3. Developing political support. The support from powerful individuals and groups assures a successful implementation of the measures for change. • 4. Managing the transition. In this phase plans to accommodate the change are made, especially in the transitional period. • 5. Sustaining momentum.This includes gathering resources and reinforcing the organization for the changes needed.

15. 2. Techniques and tools • The logic of OD suggests that the improvement of group relationships leads to the improvement of the whole organization. • Organizations need to develop quick responses to changing environments and internal conflict. • The practitioners of OD, sometimes called change agents, use OD techniques to bring groups together to examine their own interactions, activities, and feelings and their relationship to organizational effectiveness. • Every OD consultant might use a particular approach to the problems; there is no instructions to solve all the organizational problems.

16. The more broadly used techniques of OD are: • T-groups • ii. Process consultation • iii. Third party intervention • iv. The managerial grid • v. Team Building • vi. Quality circles • vii. Total quality management

17. T-Groups • This is the best known method of OD; its purpose is to promote • awareness of relationship and group processes. Essentially, the T- • group consists of ten to fifteen strangers who meet with an expert • tutor to research the social dynamics that come out of their • interactions.

18. T-groups • In 1947, the Office of Naval Research and the National Education Association created the National Training Laboratories Institute in Bethel, Maine. It pioneered the use of T-groups (Sensitivity or Laboratory Training) in which the learners use feedback, problem solving, and role play to gain insights into themselves, others, and groups. The goal was to change the standards, attitudes and behavior of individuals. • This type of training is controversial as the behaviors it encourages are often self-disclosure and openness, which many people believe an organization ultimately punishes. Also, a lot of the sensitivity training taking place uses excessive activities. The feedback used in this type of training can be highly personal, hence it must be given by highly trained observers (trainers).

19. ii. Process consultation • Process consultation aims to establish better relationships in organizations, especially in groups, because it helps to improve organizational processes. This technique intends to ensure that those who are receiving the help are doing so for their own particular problems, and are gaining the skills and experience to solve those problems themselves. Therefore, process consultation is an approach to helping people and groups to support themselves.

20. Process consultation deals with five important organizational processes: • Communications • 2. The roles and functions of group members • 3. The ways in which the group solves problems and makes decisions • 4. The development and growth of group norms • 5. The use of leadership and authority