The purpose of this paper is to explain three frameworks that can be used to aid strategic decision making and the implementation of strategies.
Abstract
Purpose
The purpose of this paper is to explain three frameworks that can be used to aid strategic decision making and the implementation of strategies.
Design/methodology/approach
Dissatisfaction with existing approaches to strategic management, e.g. Michael Porter's models and SWOT analysis, led me to seek for alternatives. Of particular value in this search were ideas from post‐modernism and quantum mechanics which triggered the notion of opposing forces. From opposing forces I developed the idea of managing forces. Having generated this shell of an idea I then set about deciding what forces would be the most suitable to use – and this took quite a while. Once the managing forces framework had been developed I was then able to test it out in my consultancy work and with business students. Perceived differential value arose out of a desire to simplify Porter's model of competitive advantage whilst at the same time creating a model that was more powerful in that it highlights the importance of perceptions, differential value (e.g. a product may be a cost leader but not possess differential value as far as the customers are concerned) and profits.
Findings
The frameworks have been found to be extremely useful in surfacing many of the issues that need to be taken account of in strategic decision making and the implementation of strategies.
Practicality
The frameworks have been designed to be readily usable by both business people and business students.
Originality/value
The managing forces framework (which incorporates opposing forces) brings more strategic issues to the attention of managers than any other business model and it also encourages a dynamic, creative and problem‐solving approach to strategic management. The perceived differential value framework focuses attention on vital components of a successful strategy.
Details
Keywords
It must be difficult for many to contemplate the numerous changes in progress and projected without wondering why it all has to happen now. Of course, there have always been with…
Abstract
It must be difficult for many to contemplate the numerous changes in progress and projected without wondering why it all has to happen now. Of course, there have always been with us those who would change everything, even those who would spoil; all seemingly unable to leave anything alone; unwillingly to let us be for what we are. Then there are those who dislike change of any kind in their familiar environment and strangely, children are the most conservative of us all, and others who do not object to change when it is necessary, but only when it is change merely for the sake of change. The changeover to the metric system, or to use one of the grating terms of the new technological language, metrication, must be accepted as a natural sequence to decimal currency and advances in industry. A revolution in weights and measures, it will indeed present very great problems throughout the country and at all levels, which will dwarf those presented by the switch to decimal coinage, for at worst, these may be just confusing to the general public and a price‐raiser in small‐value commodities, despite assurances to the contrary.
Marilyn M. Helms and Judy Nixon
The purpose of this study is to examine the use of the strategic management tool, Strengths‐Weaknesses‐Opportunities‐Threats or SWOT analysis, and to assess how the methodology…
Abstract
Purpose
The purpose of this study is to examine the use of the strategic management tool, Strengths‐Weaknesses‐Opportunities‐Threats or SWOT analysis, and to assess how the methodology has been used as well as changes to the methodology. The findings both for and against SWOT analysis should lead to a balanced view of the technique as well as yield ideas for needed theory building.
Design/methodology/approach
Using the ABInform Global® database, academic peer‐reviewed articles were compiled indicating SWOT as one of the article's key index and search words.
Findings
The use of SWOT analysis continues to permeate the academic peer‐reviewed literature. Research supports SWOT analysis as a tool for planning purposes. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions. As a methodology for strategic positioning, SWOT analysis has been extended beyond companies to countries and industries and is used in virtually every published business case positioned for business student analysis. Additional use of SWOT is as teaching tools by consultants, trainers and educators. This paper provides a summary of the research studies and suggests paths for future research.
Research limitations/implications
This paper is limited to analyzing reports found in a selection of academic peer‐reviewed business journals. However, research implications for applying SWOT analysis provides a broad spectrum of industry analysis in North America, Europe, and Asia. Additional limitations are the need to link SWOT analysis to other strategic tools and methodologies for further theory building, since past research continues to lack quantifiable findings on the success of the SWOT analysis.
Practical implications
A fresh view of new directions and implementations for SWOT analysis, as well as other strategic planning tools that can be combined with SWOT, provides guidance for practitioners and policy makers alike.
Originality/value
The article adds value to the existing literature as the first summary of SWOT research indicating its uses and limitations. Support of its usage and place in the strategic literature is validated. The SWOT methodology is pervasive, in large part, due to its simplicity. In addition, the use of SWOT as a proven developmental, results‐oriented strategic planning tool is also extended, although further research leading to theory building is warranted and recommended.