Page 57 - BA1 Integrated Workbook STUDENT 2018

Position and gap analysis

Position auditing

The last few chapters have involved examining the internal and external issues
facing the organisation. We can summarise this into a single analysis, known as a
SWOT, or corporate appraisal.

STRENGTHS WEAKNESSES
Internal

External
OPPORTUNITIES THREATS

Opportunities and threats are often used to identify possible strategies the
organisation may adopt, while strengths and weaknesses can be used to assess
whether a strategy is suitable for the organisation to adopt.

 Threats focusing on weakness – This would usually have top priority. This
requires a defensive response kind and may necessitate rapid change.

 Threats focusing on strength – this requires a review of the supposed
strength to ensure that it is still as strong as previously thought.

 Opportunity focusing on strength – this gives the organisation the chance to
develop strategic advantage in the marketplace.

 Opportunity focusing on weakness – this will require management to make a
decision as to whether to change and pursue the opportunity or, alternatively,
ignore the prospect and ensure resources are not wasted in this area.

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