Executive Post Graduate Diploma in Management

KHAN SAMRINISA ISMAIL

EPGDM MAY 2022 QUAD II

Registration No - 2022EPGD05ASB007
December 2022

Competition and Strategy.

 1. Assignment 1 CS Dec 2022

ASSIGNMENT

1. Q1) Briefly explain the major factors that are kept in mind while carrying out the
internal analysis of an organisation?

If a business wants to be successful in the marketplace, it is necessary for them to fully

understand what factors exert impact on the development of their company. Once they know
about both positive and negative effects within and outside the company, they can produce
suitable strategies to handle any predicted situation. Therefore, examining internal and
external factors is considered the most important task for an enterprise before launch any
strategic marketing plan.

Internal Environment Factors

Definition

The internal factors refer to anything within the company and under the control of the
company no matter whether they are tangible or intangible. These factors after being figured
out are grouped into the strengths and weaknesses of the company. If one element brings
positive effects to the company, it is considered as strength.

On the other hand, if a factor prevents the development of the company, it is a weakness.
Within the company, there are numerous criteria need to be taken into consideration.

Types

There are 14 types of internal environment factors:

1. Plans & Policies

2. Value Proposition
3. Human Resource
4. Financial and Marketing Resources
5. Corporate Image and brand equity
6. Plant/Machinery/Equipments (or you can say Physical assets)
 7. Labour Management
8. Inter-personal Relationship with employees
9. Internal Technology Resources & Dependencies
10.Organizational structure or in some cases Code of Conduct
11.Quality and size of Infrastructure
12.Task Executions or Operations
13.Financial Forecast
14.The founders relationship and their decision making power.

Method of study

There are many factors affecting business have been studied, among them, we provide you a

deep insight of the most decisive factors, which are at the center of every business today

Internal impacts

The internal factors refer to anything within the company and under the control of the

company no matter they are tangible or intangible. These factors after being figured out are

grouped into strengths and weaknesses of the company. If one element brings positive effects

to company, it is considered as strength. On the other hand, if a factor prevents the

development of the company, it is a weakness. Within the company, there are numerous

criteria need to be taken into consideration.

Human resources

In the modern global economy, where ideas and digital skills - rather than physical resources

are increasingly where economic value is realised, human resource can be a company’s greatest

treasure. In general, the employees can be either a strength or weakness of the company

depending on the level of practical skills, attitudes toward work, performance and so on. For
example, if a business has skilled and motivated workers, they are sure to be the biggest asset

of this enterprise.

Conversely, employees without carefully trained and have negative attitudes to their task will

be an enormous challenge for the company to address. In short, the CEO should have a

strategic and effective human management not only for the sake of company benefits but also

for the positive development of their employees.

Capital resources

From a general view, financial capital is the funds necessary to grow and sustain a business.

CEO takes financial capital to invest in not only tangible goods such as factories, machines, tools
and other productive equipment to produce an output but also intangible resources such as

marketing, employee training, etc.

No company can survive without having capital resources. Once a company has enough budget,

they can easily launch their projects, expand its scale and even achieve impressive result. For

instance, in 2010 Coca Cola - “the 84 biggest economy” spent 2.9 billion USD for marketing,

which was more than that total marketing investment of Microsoft and Apple. It can be said

that without the big investment and stable financial resource, Coca Cola success would not be

guaranteed.

There are also several ways for an enterprise to maintain stable budgets by some resources

such as investment opportunities, funding, and annual income.

Operational efficiency

The concept of operational efficiency encompasses the practice of improving all of your

processes, which are all your company’s activities leading to your final product or service.

Because Operational efficiency directly affects the company’s success in the marketplace, a

businessman needs to truly know his company’s processes and follow them to discover

whether they’re being performed in the correct manner or not. Here are some suggestions for

you to achieve this efficiency :

 Study the business situation

 Pay attention to product cost
 Map process failure and discover failure
 Use technology for better operation productivity

Organizational structure

To have a suitable organizational structure requires the owners have to consider carefully set

up a business management system to work smoothly within the company. Whether it is a

centralized or decentralized system, the most important thing is how effective the structure is

when applied for the company. The heads of departments need to make sure that the

information flow is widely conveyed to all customers. Suitable rules and regulations are being

applied to ensure the benefits of employees, and the business as well.

Infrastructure

When you already have well-trained and motivated workers, an effective operational and

organizational system, make sure that the infrastructure of the company are good enough

for all your functions. With the modern and high quality facilities, stable power, internet and

wifi connection, and so on your company is likely to perform better. In other words, the better

your infrastructure, the more opportunities for your company to perform successfully.

Innovation

In the competitive marketplace and industrial revolution we are living now, no company can

survive without upgrade new ideas and technology served overall success.
Fundamentally, innovation refers to the introduction of something new into your business with

the ideas come from inside the business such as from employees, developers, managers or

from the outside world like suppliers, customers, etc. Successful innovation can bring about

productivity, cost reduction, higher competitiveness, brand value, turnover increase. In

contrast, companies which fail to apply innovation will surely face the risks of losing market

share to competitors, underlying profit loss and losing key staff.

Innovation is rewarding for your business only when you step by step start to holistically

approach to innovation, plan and encourage innovation and spread investment for innovation

in your business.
 Q2 )In carrying out the external analysis of an organisation, explain the major threats
relating to the opportunities and threats that play a significant role.

Ans :

SWOT Analysis

SWOT is an acronym used to describe the particular Strengths, Weaknesses,

Opportunities, and Threats that are strategic factors for a specific company. A SWOT
should represent an organization’s core competencies while also identifying
opportunities it cannot currently use to its advantage due to a gap in resources.

The SWOT analysis framework has gained widespread acceptance because of its
simplicity and power in developing strategy. Just like any planning tool, a SWOT analysis
is only as good as the information that makes it up. Research and accurate data is vital
to identify key issues in an organization’s environment.

How to Do a SWOT Analysis

A SWOT analysis can be broken into several steps with actionable items before and after
analyzing the four components. In general, a SWOT analysis will involve the following steps.

Step 1: Determine Your Objective

A SWOT analysis can be broad, though more value will likely be generated if the analysis is
pointed directly at an objective. For example, the objective of a SWOT analysis may focused
only on whether or not to perform a new product rollout. With an objective in mind, a company
will have guidance on what they hope to achieve at the end of the process. In this example, the
SWOT analysis should help determine whether or not the product should be introduced.

Step 2: Gather Resources

Every SWOT analysis will vary, and a company may need different data sets to support pulling
together different SWOT analysis tables. A company should begin by understanding what
information it has access to, what data limitations it faces, and how reliable its external data
sources are.

In addition to data, a company should understand the right combination of personnel to have
involved in the analysis. Some staff may be more connected with external forces, while various
staff within the manufacturing or sales departments may have a better grasp of what is going
on internally. Having a broad set of perspectives is also more likely to yield diverse, value-
adding contributions.

Step 3: Compile Ideas

For each of the four components of the SWOT analysis, the group of people assigned to
performing the analysis should begin listing ideas within each category. Examples of questions
to ask or consider for each group are in the table below.

Internal Factors

What occurs within the company serves as a great source of information for the strengths and
weaknesses categories of the SWOT analysis. Examples of internal factors include financial
and human resources, tangible and intangible (brand name) assets, and operational efficiencies.

Potential questions to list internal factors are:

 (Strength) What are we doing well?

 (Strength) What is our strongest asset?
 (Weakness) What are our detractors?
 (Weakness) What are our lowest-performing product lines?

External Factors

What happens outside of the company is equally as important to the success of a company as
internal factors. External influences, such as monetary policies, market changes, and access to
suppliers, are categories to pull from to create a list of opportunities and weaknesses.1

Potential questions to list external factors are:

 (Opportunity) What trends are evident in the marketplace?

 (Opportunity) What demographics are we not targeting?
 (Threat) How many competitors exist, and what is their market share?
 (Threat) Are there new regulations that potentially could harm our operations or
products?

Strengths
Weaknesses
1. What is our competitive advantage?
1. Where can we improve?
2. What resources do we have?
2. What products are underperforming?
3. What products are performing
3. Where are we lacking resources?
well?
Opportunities Threats
1. What new technology can we use? 1. What regulations are changing?
2. Can we expand our operations? 2. What are competitors doing?
3. What new segments can we test? 3. How are consumer trends changing?

Companies may consider performing this step as a "white-boarding" or "sticky note" session.
The idea is there is no right or wrong answer; all participants should be encouraged to share
whatever thoughts they have. These ideas can later be discarded; in the meantime, the goal
should be to come up with as many items as possible to invoke creativity and inspiration in
others.

Step 4: Refine Findings

With the list of ideas within each category, it is now time to clean-up the ideas. By refining the
thoughts that everyone had, a company can focus on only the best ideas or largest risks to the
company. This stage may require substantial debate among analysis participants, including
bringing in upper management to help rank priorities.

Step 5: Develop the Strategy

Armed with the ranked list of strengths, weaknesses, opportunities, and threats, it is time to
convert the SWOT analysis into a strategic plan. Members of the analysis team take the
bulleted list of items within each category and create a synthesized plan that provides guidance
on the original objective.

For example, the company debating whether to release a new product may have identified that
it is the market leader for its existing product and there is the opportunity to expand to new
markets. However, increased material costs, strained distribution lines, the need for additional
staff, and unpredictable product demand may outweigh the strengths and opportunities. The
analysis team develops the strategy to revisit the decision in six months in hopes of costs
declining and market demand becoming more transparent.

 Use a SWOT analysis to identify challenges affecting your business and opportunities that can
enhance it. However, note that it is one of many techniques, not a prescription.
Benefits of SWOT Analysis
A SWOT analysis won't solve every major question a company has. However, there's a number
of benefits to a SWOT analysis that make strategic decision-making easier.

 A SWOT analysis makes complex problems more manageable. There may be an

overwhelming amount of data to analyze and relevant points to consider when making a
complex decision. In general, a SWOT analysis that has been prepared by paring down
all ideas and ranking bullets by importance will aggregate a large, potentially
overwhelming problem into a more digestible report.
 A SWOT analysis requires external consider. Too often, a company may be tempted to
only consider internal factors when making decisions. However, there are often items
out of the company's control that may influence the outcome of a business decision. A
 SWOT analysis covers both the internal factors a company can manage and the external
factors that may be more difficult to control.
 A SWOT analysis can be applied to almost every business question. The analysis can
relate to an organization, team, or individual. It can also analyze a full product line,
changes to brand, geographical expansion, or an acquisition. The SWOT analysis is a
versatile tool that has many applications.
 A SWOT analysis leverages different data sources. A company will likely use internal
information for strengths and weaknesses. The company will also need to gather
external information relating to broad markets, competitors, or macroeconomic forces
for opportunities and threats. Instead of relying on a single, potentially biased source, a
good SWOT analysis compiles various angles.
 A SWOT analysis may not be overly costly to prepare. Some SWOT reports do not need
to overly technical; therefore, many different staff members can contribute to its
preparation without training or external consulting.

SWOT Analysis Example

In 2015, a Value Line SWOT analysis of The Coca-Cola Company noted strengths such as its
globally famous brand name, vast distribution network, and opportunities in emerging markets.
However, it also noted weaknesses and threats such as foreign currency fluctuations, growing
public interest in "healthy" beverages, and competition from healthy beverage providers.2

Its SWOT analysis prompted Value Line to pose some tough questions about Coca-Cola's
strategy, but also to note that the company "will probably remain a top-tier beverage provider"
that offered conservative investors "a reliable source of income and a bit of capital gains
exposure."

Five years later, the Value Line SWOT analysis proved effective as Coca-Cola remains the 6th
strongest brand in the world (as it was then). Coca-Cola's shares (traded under ticker symbol
KO) have increased in value by over 60% during the five years after the analysis was completed.

To get a better picture of a SWOT analysis, consider the example of a fictitious organic smoothie
company. To better understand how it competes within the smoothie market and what it can
do better, it conducted a SWOT analysis. Through this analysis, it identified that its strengths
were good sourcing of ingredients, personalized customer service, and a strong relationship
with suppliers. Peering within its operations, it identified a few areas of weakness: little product
diversification, high turnover rates, and outdated equipment.

Examining how the external environment affects its business, it identified opportunities in
emerging technology, untapped demographics, and a culture shift towards healthy living. It also
found threats, such as a winter freeze damaging crops, a global pandemic, and kinks in the
supply chain. In conjunction with other planning techniques, the company used the SWOT
analysis to leverage its strengths and external opportunities to eliminate threats and strengthen
areas where it is weak.
What Is SWOT Analysis?
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a method for identifying
and analyzing internal strengths and weaknesses and external opportunities and threats that
shape current and future operations and help develop strategic goals. SWOT analyses are not
limited to companies. Individuals can also use SWOT analysis to engage in constructive
introspection and form personal improvement goals.

What Is an Example of SWOT Analysis?

Home Depot conducted a SWOT analysis, creating a balanced list of its internal advantages and
disadvantages and external factors threatening its market position and growth strategy. High-
quality customer service, strong brand recognition, and positive relationships with suppliers
were some of its notable strengths; whereas, a constricted supply chain, interdependence on
the U.S. market, and a replicable business model were listed as its weaknesses.

Closely related to its weaknesses, Home Depot's threats were the presence of close rivals,
available substitutes, and the condition of the U.S. market. It found from this study and other
analysis that expanding its supply chain and global footprint would be key to its growth.3

What Are the 4 Steps of SWOT Analysis?

The four steps of SWOT analysis comprise the acronym SWOT: strengths, weaknesses,
opportunities, and threats. These four aspects can be broken into two analytical steps. First, a
company assesses its internal capabilities and determines its strengths and weaknesses. Then, a
company looks outward and evaluates external factors that impact its business. These external
factors may create opportunities or threaten existing operations.

How Do You Write a Good SWOT Analysis?

Creating a SWOT analysis involves identifying and analyzing the strengths, weaknesses,
opportunities, and threats of a company. It is recommended to first create a list of questions to
answer for each element. The questions serve as a guide for completing the SWOT analysis and
creating a balanced list. The SWOT framework can be constructed in list format, as free text, or,
most commonly, as a 4-cell table, with quadrants dedicated to each element. Strengths and
weaknesses are listed first, followed by opportunities and threats.

Why Is SWOT Analysis Used?

A SWOT analysis is used to strategically identify areas of improvement or competitive
advantages for a company. In addition to analyzing thing that a company does well, SWOT
analysis takes a look at more detrimental, negative elements of a business. Using this
information, a company can make smarter decisions to preserve what it does well, capitalize on
its strengths, mitigate risk regarding weaknesses, and plan for events that may adversely affect
the company in the future.

The Bottom Line

A SWOT analysis is a great way to guide business-strategy meetings. It's powerful to have
everyone in the room discuss the company's core strengths and weaknesses, define the
opportunities and threats, and brainstorm ideas. Oftentimes, the SWOT analysis you envision
before the session changes throughout to reflect factors you were unaware of and would never
have captured if not for the group’s input.

A company can use a SWOT for overall business strategy sessions or for a specific segment such
as marketing, production, or sales. This way, you can see how the overall strategy developed
from the SWOT analysis will filter down to the segments below before committing to it. You can
also work in reverse with a segment-specific SWOT analysis that feeds into an overall SWOT
analysis.

Although a useful planning tool, SWOT has limitations. It is one of several business planning
techniques to consider and should not be used alone. Also, each point listed within the
categories is not prioritized the same. SWOT does not account for the differences in weight.
Therefore, a deeper analysis is needed, using another planning technique.