Management: The Language Of SWOT

STRATEGIC OBJETIVES

 

-Also known as strategic objectives (s.p.o)

-These are those project objectives which are long to medium term in nature and which are intended to exploit firms opportunity and strengths and to handle firms weakness and threats .

Characteristics Nature of Strategic Objectives (general)

i)They are long to medium term in nature

long term -3 and more years

medium term -more than 1 yr but less than 3 yrs .

ii)Are intended to exploit opportunities and strengths

 iii)They are intended to handle or deal with weakness of a firm or threats and may face a

company .

iv) They are overall or applying for a company as a whole

 v)They are linked to a corporate vision and mission values and policies

therefore strategic objectives just like strategy enables a firm to match its internal

factors /environment with external environment.

 

 

Strategic Objectives

 

internal                                                  External

strength                 matching                   opportunity

weakness               Aligning                     threats

 

How strategic Objectives are set

They are set by conducting conducting SWOT analysis,in swot analysis we consider the internal forces & relate them with the external forces .

Steps in setting strategic obligations

1.Define the corporate vision,mission,values and policies

2.Do swot analysis,look at strength,weaknesses,opportunities and threats

Conducting swot analysis

steps of conducting

1.Identify the company and project for which you want to carry out a SWOT eg ministry of education ;free primary education ,Chinese construction firm ,WUY,Thika road rehabilitation project .

ii)To study company-internet,newsletters,interviews

iii)Draw SWOT analysis table or matrix

Swot table has 4 components

Strengths: Explored company to build its capacity to exploit opportunities therefore strengths are derived from positive internal environment factors (corporate vision, mission, values, policies, goals, strategies, structure, system, resources, staff, management team ,culture and shareholder they are internal but positive.(I+)

 

Weakness : Unfavorable internal conditions that disable the company from building its capacity to exploit opportunities therefore weakness are derived from negative environmental factors .(I-)

 

Opportunities :Favorable external conditions or conditions that a company can use its strength to exploit in order 2 grow or prosper in future therefore opportunities are derived from positive external environment conditions (E+).This include the immediate environmental (micro ) & the macro environment .

 

Content of Immediate /Task Environment .

i)Target market

ii)competitors

iii)surrounding communications

iv)Local authority

v)courts

vi)Distributors

vii)suppliers

viii)Regulatory authority (e.g NEMA)

ix)Pressure grounds (Trade group cotv)

x)Parliament

ix)D PP-political parties

Content of Macro environment

  1. I) Political and legal

ii)Economic

iii)Social culture

iv)Technological

v)Ecological

 

 

Threats ;Unfavorable external conditions that a company can use its strengths to exploit in order to prosper.(E-).They reduce the company’s ability to grow or expand & if not handled ,may lead 2 bankruptcy or collapse of a company.

Therefore threats are derived from negative external environmental factors.

 

 

Example:

N/B SWOT ANALYSIS TABLE/MATRIX FOR WUYI CHINEESE CO.AND THE READ REHABILITATION PROJECT FOR YEAR ENDED 31/12/2012

STRENGTHS (I+)

I. Competent and experienced management team

committed & humble supervisory staff

iii)Highly advanced equip & tools

iv) Use innovative & creativity

v)efficient and effective control system

vi)Flexible structure

vii)Committed shareholder

viii)Professional engineers

ix)posses adequate financial capability

x)Down to earth financial capability

   OPPORTUNITIES(E+)

WEAKNESS (I-)

I. Low pay leading to high labor turnover among est the causes

ii. Over indulging with Kenyan people

iii)Untrained manual laborers

iv)Language barrier

 

 

 

 

 

 

THREATS (E-)

I. Kenya new structure of government that allows countries to spend on structures .

ii.

iii. The +ve Kenyan – Chinese govt diplomacy

iv. Renewal of E.A.C (Revival )

v. Increased CDF

vi. Extension of Kenyan Local Road constructors

vii. Extension of European and American and German co. company’s

viii. High rainfall that wipes out roads

 

I. Political stability

ii. Economic depression

 

iii.

iv. Threats of new legislation favoring local contractors .

v. Threats from the west (world bank)

 

 

Management

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