SWOT analysis of the FDA's strategic financial planning and oversight

S.W.O.T. Analysis.

SWOT analysis in the strategic financial planning process:

FDA (Food and Drug Administration)

The FDA, as part of the Department of Health and Human Services, regulates food, drug, tobacco products and other matters that pertain to consumer health and safety. It is charged with "protecting the public health by assuring that foods are safe, wholesome, sanitary and properly labeled; human and veterinary drugs, and vaccines and other biological products and medical devices intended for human use are safe and effective" (What does the FDA do, 2012, FDA).

Strengths

The FDA's mission of upholding consumer safety is widely supported by the public. It periodically posts information regarding the recall of dangerous products, providing a resource for the public and holding companies accountable. This ensures there will be sustained support for funding the organization. Although there have been calls to cut other departments, in general the public has grown more, rather than less supportive of additional government oversight over food and drug products.

Weaknesses

The FDA's objectivity and effectiveness has been called into question. "FDA needs to, among other things, improve the data it uses to manage the foreign drug inspection program, conduct more inspections of foreign establishments, systematically prioritize and track promotional materials for review, and adopt management tools to ensure that drug sponsors comply with regulations on the presentation of clinical trial results," read a recent report by Government Accountability Office (GAO) (FDA facing increasing criticism and calls for restructuring, 2009, AACR). The GAO noted that the FDA's budget has not kept pace with its responsibilities given recent scientific and technological advances, "challenging new safety problems, and the globalization of industries that it is charged to regulate" (FDA facing increasing criticism and calls for restructuring, 2009, AACR).

Widespread criticism of the FDA's lack of vigilance has also led to mistrust of the organization's ability to be effective. The FDA has a very broad mission as an organization, which can make effective use of organizational resources a challenge.

Threats

The House recently tried to cut the FDA's food safety budget by $87 million, which would make it very difficult to enforce the new food safety law (Layton 2011). The FDA must also compete for resources with the U.S. Department of Agriculture, which also regulates other aspects of the food supply.

How the FDA could benefit from SWOT analysis

As an organization with ever-expanding responsibilities and a shrinking budget, the FDA must allocate its resources effectively. It must recognize from what quarters it can draw support as well as respond to charges from its critics.