We all know SWOT analysis as a basic model for strategic planning. However, in the CIMA SCS and ACCA SBL exams, when faced with a question on drawing up a SWOT for an organization or whether a strategic option is an excellent strategic fit, we may be stumped for a few seconds on where to start. So, use the following models as a good starting point:
For opportunities, use the Ansoff model.
Ansoff is a 2*2 matrix that builds off two indicators – market and product. Examples of strategies for each:- Market penetration (acquiring your competitor)
- Market development (taking your product or services to new markets, e.g., globally or online presence, etc.)
- Product development (a spin-off of your product or service to cater to niches like ethnicity, gender, age groups, etc.)
- Diversification (the hardest of the four, a new product in a new market)
- Fit into your vision, mission, and values framework
- Are acceptable to shareholders and the wider stakeholder community
- Are economically and technically feasible
- For threats, you can use the PESTLE and TOWS matrix as explained below.
- Political
- Economic
- Social
- Technological
- Legal
- Environmental
- Build and enhance strengths
- Resolve or reduce weaknesses
- Exploit or expand opportunities
- Avoid or thwart threats
Evita Veigas
2 min read