Strategic Management
Chapter 5
SWOT and Strategic Issues
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Learning Objectives
• How is the SWOT framework developed and used for determining
strategic issues and strategies?
• What is a strategic issue and how is it identified and expressed?
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The Next Step…
• So, after the external and internal analysis is completed, what do we
do with all this information?????
• Consolidate the most important information into a SWOT analysis!!
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The Purpose of SWOT Analysis
• Purpose – consolidate external and internal analysis to most important factors
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SWOT Analysis
• Strengths and Weaknesses
• Usually internal to the organization
• Resources or capabilities to leverage for a competitive advantage??
• Deficiencies to correct to be a better performing organization??
• Opportunities and Threats
• Usually external to the organization
• Positive external or competitive forces to exploit??
• Negative external or competitive forces to mitigate??
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SWOT Analysis Example
Subway
• Strengths
• Healthy menu options
• Economical pricing
• Simple business format
• Weaknesses
• Limited menu items
• High employee turnover
• No hamburgers or french fries
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SWOT Analysis Example (Cont.)
Subway
• Opportunities
• Untapped international markets
• Movement to more healthy eating
• Threats
• Competitors offering more options
• Long-term economic slow-down due to
pandemic
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Strategic Issue(s)
• Reviewing the SWOT Analysis…
• What is the main strategic issue or issues facing the organization?
• Can be a positive or negative issue
• What do we need to be sure we address in our strategic plan?
• Note that the issue is strategic, not short term.
• A strategic issue is NOT we need to do more marketing, advertise on Facebook
• Write the strategic issue in one sentence, usually in question form.
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Strategic Issue(s) Examples
Examples
❑Southwest Airlines - “How does Southwest Airlines
adjust to long-term, lower passenger volumes and remain
the preferred, low-cost leader in the industry?”
❑Subway - “How does Subway enter untapped
international markets?”
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Strategic Issue(s) Conclusion
In Conclusion
• Usually the analysis can be condensed to one strategic issue.
• Define the strategic issue concisely, hence in one sentence
• Now the next step is to develop strategies to move your organization
forward
• Be sure at least one strategy addresses the strategic issue
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