Fundamentals of Management 7th Edition by Ricky Griffin

Exercise 15

The SWOT Analysis
Purpose: The SWOT analysis provides the manager with a cognitive model of the organization and its environmental forces. By developing the ability to conduct such an analysis, the manager builds both process knowledge and a conceptual skill. This skill builder focuses on the administrative management model. It will help you develop the coordinator role of the administrative management model. One of the skills of the coordinator is the ability to plan.
Introduction: This exercise helps you understand the complex interrelationships between environmental opportunities and threats and organizational strengths and weaknesses. Strategy formulation is facilitated by a SWOT analysis. First, the organization should study its internal operations to identify its strengths and weaknesses. Next, the organization should scan the environment to identify existing and future opportunities and threats. Then, the organization should identify the relationships that exist among these strengths, weaknesses, opportunities, and threats. Finally, major business strategies usually result from matching an organization's strengths with appropriate opportunities or from matching the threats it faces with weaknesses that have been identified.
Instructions: First, read the short narrative of the Trek Bicycle Corporation's external and internal environments, found next in this chapter.
Second, divide into small group, and conduct a SWOT analysis for Trek based on the short narrative. You may also use your general knowledge and any information you have about Trek or the bicycle manufacturing industry. Then prepare a group response to the discussion questions.
Third, as a class, discuss both the SWOT analysis and the groups' responses to the discussion questions.
Why do most firms not develop major strategies for matches between threats and strengths?