Introduction
Strategic planning is used to guide an organization during times of change. The plan applies external environments like the industrial environment and the economy. It creates concepts that strive to create an environment of healthy competition. It also comes up with ways of coming up with funding for projects, enhancing in any opportunities while reducing on expenses. It sets out marketing tactics and requirements for sales and production so as to achieve the targets for the particular project period. In contrast, operational planning pushes the ideas drafted in the strategic plan to the action stage. It deals with equipment and facilities, budgets, human resources and administration.
S.W.O.T Analysis – The internal and external factors
A strategic plan must undergo analysis before it is implemented. S.W.O.T analysis looks at both the internal and external environment of a firm by identifying the Strengths, Weaknesses Opportunities and Threats that an organization faces (Carpenter et al., 2001).
The Internal Analysis focuses on factors within the firm. These factors are the Strengths and Weaknesses of the firm. Analysis of strengths should be focused on the customer. They are only valuable when they help the firm in meet the needs of their clients. Analysis of strengths should be focused on the customer. Weaknesses refer to the setbacks a firm may face in creating or implementing their strategies. It is therefore important that firms link their strengths and weaknesses according to the needs of their customers (Brockmann et al., 1997).
This is because customers usually spot weaknesses that the company has not yet seen. It is therefore important that firms link their strengths and weaknesses according to the needs of their customers. This is because those that relate to customer satisfaction are the most vital in maintaining healthy competition with other firms. The important factors that make up an internal analysis are: manpower, money, machinery, materials and markets (Brockmann et al., 1997)
External Analysis looks at the Opportunities as well as Threats that are found within the environment (Carpenter et al., 2001). How would one differentiate Strength or a Weakness from an Opportunity or a Threat? This is done by asking the question: Would the problem exist if the organization did not? If the answer is affirmative, that factor is external to the organization. Opportunities are favorable conditions within the environment which may benefit the development of the firm if used wisely (Brockmann et al., 1997). Threats are barriers to the objectives of the firm (Delios et al., 2000).
Application in Logistics
A common factor that requires both internal and external analysis is market (Delios et al., 2000). In the logistical scene, questions concerning markets in internal analysis are: if new markets are blossoming, the state of the current market, and the strength of the firm in the current market (Delios et al., 2000). The firm should identify its strengths. For example, is the firm providing effective customer service and good marketing strategies? Weaknesses should also be noted.
For example, customer dissatisfaction with the services provided e.g. goods being delivered late or in poor condition. When looking at markets from an external point of view, the aspects of competition and product substitution are vital (Delios et al., 2000). For example, if there is growing competition in a certain location, the firm can seek opportunities in other more prospective areas (Delios et al., 2000).
Conclusion
In conclusion, strategic analysis is a key part of any franchise. Without it, an organization cannot identify its current situation and forge its way forward for the future.
References
Brockmann, Erich N., & Simmonds, Paul G. (1997). Strategic decision making: The influence of CEO experience and the use of tacit knowledge. Journal of Managerial Issues, 9(4), 454– 467
Carpenter, Mason A., & Fredrickson, James W. (2001). Top management teams, global strategic posture and the moderating role of uncertainty. Academy of Management Journal, 44(3), 533– 545.
Delios, Andrew, & Henisz, Witold J. (2000). Japanese firms’ investment strategies in emerging economies. Academy of Management Journal, Special Research Forum on Strategies in Emerging Economies, 43(3),305– 323.