Part A Strategic Analysis Tools

Question 1

What are the 3 Strategic Analysis Tools

Answer 1

• SWOT Matrix & TOWS Matrix (These 2 link together, TOWS matrix follows on from
  a SWOT analysis)
• PESTLE Analysis

Question 2

SWOT

Answer 2

Grid of 4 Strengths and weaknesses at the top and Opportunities and threats at the bottom.

W – weaknesses
O – opportunities – chance for profit and growth
T – threats – external environmental threats to clinic

Local & present time
Identify internal capabilities with external competitive environment.

Question 3

Strengths

Answer 3

S – strengths – resources and capabilities used to develop a competitive advantage e.g.
Any USPs you might have, Hard working, compassionate, good listener, adaptive communication, Problem solving/tactile, observational skills picking up on visual ques

Question 4

Weaknesses

Answer 4

The absence of certain strengths are a weakness.
Inability to work certain hours, only working with a certain category of Pts or specific body area. No disabled access, Rural location with low footfall, Lack of experience, Lack of business planning/financial skills

Question 5

Opportunities

Answer 5

Chance for profit and growth
The external environmental analysis may reveal certain new opportunities for profit and growth. Products, events, grants available. Local club has launched e.g. new MMA gym or running club, Bid opening for pitch-side therapists for a local sporting event, New maternity unit opening in the community, Opportunity for cross-referrals with a local PT

Question 6

Threats

Answer 6

Changes in the external environmental also may present threats to the clinic. Competitive environment, cost of living, public understanding of osteopathy, location of the clinic, opening of a new clinic, rising cost of bills

Question 7

Benefits of SWOT

Answer 7

• Helps you make the most of What you’ve got and protect against your chances of failure
• Provides info that is helpful in matching the clinics resources and capabilities to the competitive environment in which it operates.
• A scan of the internal and external environment is an important part of the strategic planning process.

Question 8

TOWS matrix

Answer 8

Pairs up each category.
* S-O strategies
* W-O strategies
* S-T strategies
* W-T strategies make a defensive plan to prevent the clinics weaknesses from making it susceptible to external threats.

Question 9

S-O strategies

Answer 9

How can the internal strengths identified be used to take advantage of the external opportunities identified.
E.g. Clinic surrounded by a big population

Question 10

W-O strategies

Answer 10

Consider how weaknesses identified can be overcome to pursue opportunities or overcome internal weakness by exploiting external opportunities identified.
E.g. Theres parking however Pts have to pay for it.

Question 11

S-T strategies

Answer 11

Identify ways that the clinic can use its strengths to reduce its vulnerability to external threats.
E.g. No Osteopaths in the area so not much competion however public may not have a good understanding of osteopathy.

Question 12

W-T strategies

Answer 12

Make a defensive plan to prevent the clinics weaknesses from making it susceptible to external threats.
E.g. High rent.

Question 13

PESTLE analysis

Answer 13

Political
Economic
Sociological
Technological
Legal
Environmental

Question 14

PESTLE +Ve

Answer 14

• analytical tool which considers external factors and helps you to think about their impacts
• Is a useful tool for understanding the “big picture” of the environment in which you are operating
• By understanding your environment, you can take advantage of the opportunities and minimise the threats.
• This provides the context within which more detailed planning can take place to take full advantage of the opportunities that present themselves.

Question 15

Political

Answer 15

◦ Government type and stability
◦ Freedom of the press
◦ Regulation
◦ Social and employment legislation e.g. IR35 rule that came into play (see resources on Canvas)
◦ Tax policy e.g. ‘Making tax digital’ conversion requiring accounting software
◦ Environmental and consumer-protection legislation
◦ Likely changes in the political environment

Question 16

Economic

Answer 16

◦ Stage of a business cycle
◦ Current and projected economic growth, inflation and interest rates
◦ Unemployment and supply of labor
◦ Labor costs e.g. rise in minimum wage to consider for receptionists
◦ Levels of disposable income and income distribution e.g. could target your marketing to demographics with more disposable income or provide concession costs to attract a larger volume of patients
◦ Likely impact of technological or other changes on the economy

Question 17

Sociological

Answer 17

◦ Cultural aspects, health consciousness, population growth rate, age distribution. E.G working in an area with an aging population will require disability access or links with local orthopedic consultants – think OA patients
◦ Organisational culture, attitudes to work, management style, staff attitudes
◦ Education, occupations, earning capacity, living standards
◦ Ethical issues, diversity, immigration/emigration, ethnic/religious factors
◦ Media views, law changes affecting social factors, trends, advertisements, publicity
◦ Demographics: age, gender, race, family size

Question 18

Technological

Answer 18

◦ Maturity of technology, competing technological developments, new discoveries
◦ Information technology, internet,
◦ Technology access, potential innovation, replacement technology/solutions, inventions, research
◦ Transportation

Question 19

Legal

Answer 19

◦ Future legislation
◦ European/international legislation
◦ Regulatory bodies and processes
◦ environmental regulations, employment law

Question 20

Environmental

Answer 20

◦ Ecological
◦ environmental issues, environmental regulations
◦ customer values, market values, stakeholder/ investor values
◦ management style, staff attitudes, organisational culture, staff engagement

Question 21

PESTLE Vs SWOT:

Answer 21

• In contrast to a SWOT, PESTLE encourages you to think about the wider environment and what might be happening now and in the future which will either benefit or be of disadvantage to the organisation, individual etc
• Think of it as a radar which picks up trends and developments in the external environment which can be used to inform longer term planning and strategy making