Strategic Plan Part II: SWOT Analysis

Strategic Plan, Part II, SWOT Analysis

The research will provide an insight about the internal and external environment of the business. The major elements of external business environment including the political, economic, social, technological, environmental are addressed below. The internal environment of an organization is also relevant and requires consideration. Therefore strategy, resources, organizational structure, organizational culture, leadership, and processes of internal environment are also discussed. The SWOT analysis along with its advantages and disadvantages are also a part of the study.

Internal and external environmental analysis for your proposed business:

Legal and regulatory:

The legal and regulatory issues associated with the external environment of the business effect a business to the core of its existence. The development in certain laws and regulations effecting the company operations are considered relevant and to some extant beyond the control and influence of the organization (Trkman, 2010).

Global:

The globalization has caused various industries to shift their target market and supply manufacturing units. The global developments and instances where a business is threatened are relevant to the extent of business operations. The global operations including supply and sales are effected through global changes in the environment.

Economic:

Economic factors are most relevant for business performance and profitability. The businesses are widely affected through the economic developments taking place in several markets. The recent business crisis in the global market has affected various entities. The businesses need to establish policies based on the economic outlook of the target market. The economic factors also affect the production, cost of production, and sales of a business (Trkman, 2010).

Technological:

Technology has played a vital role in changing business processes. The operations of several business are affected along with the pace of preforming the tasks traditionally is also changed. The changes in technological environment have led to a shorter lead time to market products as well as the cost is also reduced for various business operations. A number of businesses have established their position through utilization of advanced technology.

Innovation:

Innovative products and services have taken over the traditional business processes. The basic foundation of the innovative products is to reduce the cost and time required to perform operations. The businesses have to adhere to the industry innovations and certain product innovations can have a long-term negative or positive impact on the organizations (Trkman, 2010).

Social:

The social factors are not only influential in organizational strategy but they are also connected with the future operational prospects of the company. The social factors require attention towards well-being of the populations in which the business operates. The social implications of business operations can give rise to conflicting situations if not given appropriate attention.

Environmental:

Environmental factors are relevant in the respect that the business has to operate and responds towards the environment that is distorted through its operations. The sustainable business operations and growth is only possible through effectively addressing environmental factors.

Competition:

The extent to which a company responds towards its competition provides a guarantee that the business will continue its growth and economic development. The extent of competition is identified in order to address the issues in advance.

Internal forces and trends considerations:

Strategy:

The corporate, business, and operational strategy of the business is relevant for the business future. The alignment of strategy with the business mission and vision is required to operate (Chen, Wang, Nevo, Jin, Wang, & Chow, 2013).

Organizational structures:

The organizational structure are primary factor that is influential in identifying the decision making process. The organizations having a formal hierarchy are restricting their organizations to follow a lean structure. The lean structures are appraised for their ability of effective communications and receipt of employee feedback.

Processes and systems:

The processes and systems of a business are an important factor that can create significant quality operations. The process and systems are an internal factor and organizations are required to eliminate waste in the processes for efficient business results.

Resources:

The availability and allocation of appropriate resources in a business are required to undertake operations. The organizations are required to effectively allocate resources for optimized results.

Strategic capabilities:

The strategic capabilities are driven from the leadership vision and business mission. It is highly recommended that the business considers expansion in the strategic capabilities for attaining growth.

Organizational culture:

The most relevant factors in internal environment are the organizational culture that is based on the organizational values and business vision. The effective organizational culture is required for a business to provide and retrieve feedback from its employees.

Leadership:

The leadership of the business provides a roadmap for the whole organization. The role of leadership in leading and controlling the business is also significant. The leadership role in motivating employees for achievement of higher objectives is also critical.

Strategies the company could select:

The SWOT analysis is a strategic analysis technique that can provide complete assessment of the internal and external environments. The business can have a unique understanding of its strengths, weaknesses, opportunities, and threats. The strategies that are required to strengthen the business outlook for future can be selected through SWOT analysis. The future strategies for expansion, risk management, operations, and corporate governance can be developed on the basis of the analysis (Kajanus, Leskinen, Kurttila, & Kangas, 2012).

What strategy options are available?

The strategy options available to the business are regarding the expansion in the global marketplace. It is also assessed that the business can establish a notable advantage with the help of research and development. The changing technology and innovations in the medical filed are critical for the business and it should establish a control for innovation and providing low cost solutions. The medical assets management is another margining filed that the business can benefit from through taking a lead in the category.

Most likely strategy to be implemented:

The cost and global expansion is the likely strategy option that will be adopted as the cost of medical diagnosis is soaring in the field. The business has to establish some strategy for resolve of the issue and use innovation and technology to offer low cost medical solutions to the industry. The strategy related to the cost reduction in medical devices and imagining can provide leverage for the business.

Advantages and disadvantages of using SWOT analysis: