Exhibit 4 –5 ● Parts of a Company Situation Analysis 1. Assessment of the present strategy based on performance. 2. Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. 3. Assessment of competitive strength and identification of competitive advantage. 4. Conclusions concerning competitive position. 5. Determination of the issues and problems that need to be addressed through the strategic planning process.
Exhibit 4 –6 ● SWOT Analysis for Starbucks Coffee
The organization grows aggressively in its existing line(s) of business.
The organization enters a new line or lines of business related to its existing one(s).
The organization goes into a related ( concentric diversification ) or unrelated ( conglomerate diversification ) line of products.
Exhibit 4 –9 ● Grand and Growth Strategies Grand Strategy Growth (aggressively expand size) Stability (remain the same or grow slowly) Turnaround and Retrenchment (reverse a negative trend and cut back)) Combination (mix of other three) Growth Strategies Concentration—expand existing line(s) of business Integration—expand forward and/or backward within line(s) of business Diversification—add related and/or unrelated products
Common Methods for Pursuing a Growth Strategy Mergers Acquisitions Joint Ventures Takeovers Strategic Alliances
Responsible for financing the business activities by raising money through the sale of stock or bonds or through loans, deciding on the debt-to-equity ratio, paying off the debt and dividends to shareholders, keeping records of transactions, developing budgets, and reporting financial results.
Other Functional Strategies
Research and development (R&D) is important to remaining competitive.