CH5 - Synthesis of Strategic Issues and Analysis

Question 1

Learning Objectives

Answer 1

1. How is the SWOT framework developed and used for determining strategic issues and strategies?
2. What is a strategic issue and how is it identified and expressed?

Question 2

Strategic issue

Answer 2

A strategic issue is the primary matter faced by an organization that must be addressed for the organization to survive, excel, or achieve a major strategic initiative.

Once the strategic issue is defined, strategies can be developed that address and resolve the strategic issue and propel the organization toward accomplishing its vision

Question 3

SWOT Framework

Answer 3

A method for pooling your understanding of your strengths and weaknesses, and that of your competitors in order to identify strategic issues for you/your organization to tackle.

In essence, it summarizes the results from the assessment of your organization and the analysis of your external/internal environments to identify key issues and come up with strategies to solve them.

Question 4

S.W.O.T

Answer 4

Strengths

Weaknesses

Opportunities

Threats

Question 5

Goals of SWOT

Answer 5

Leverage firm’s strengths

Mitigate or resolve weaknesses

Capitalize on opportunities

Protect against threats

Question 6

Marketing mix (4Ps of marketing)

Answer 6

Price, Product, Place, Promotion

Question 7

Does SWOT analysis focus on an individual firm?

Answer 7

Yes

Question 8

The aircraft industry has long been dominated by two large manufacturers, Boeing and Airbus. While the demand for aircraft is low, Boeing and Airbus aggressively compete for orders from airlines. What effect will these conditions have on the domestic airline industry?

Answer 8

It will make the airline industry more attractive because of decreased supplier power.