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#2) What is the Value of a SWOT analysis? How does it contribute to developing a Strategy: SWOT analysis provides a good overview of whether a firm's businesses portions is fundamentally healthy or unhealthy. The SWOT analysis contributes to developing a strategy because it gives a clear view of a company's resource capabilities and deficiencies, its market opportunities, and the external threats to the company's future well being (Thompson & Strickland). SWOT analysis involves evaluating a company's strengths, weaknesses, opportunities and threats and drawing conclusions about how to deploy the company's resources in light of the company's internal and external situation, and how to build the company's future resource base. Identifying a Company's Strengths and Resource Capabilities A strength is something a company is good at doing or a characteristic that gives it enhanced competitiveness. Company strength may include having an ample financial resources to grow the business, the ability to take advantage of economies of scale, strong advertising and promotion, and a reputation for good customer service ( ). A company's strengths, its skills and expertise, its collection of assets, its competitive capabilities, and its market achievements, determine the complement of resources with which it competes. These resources, in conjunction with industry and competitive conditions, are big drivers in well the company will be able to perform in a dynamic competitive marketplace (Thompson & Strickland, 1998). #3) What are the advantages of a strategic partnership with key suppliers? Be specific. The advantages of a strategic partnership with key suppliers include the following: · Organizations are able to build a competitive position by partnering with suppliers that make state-of-the-art parts and components (Thompson & Strickland, 1998). · It allows an organization the flexibility to replace suppliers that fall behind on technology or product features or that cease to be competitive in price (Thompson & Strickland, 1998). Strategic partnership allows an organization to emphasize and focus on its core competencies. Managers can leverage their firms' skills and resources for increased competitiveness in four ways: 1. They maximize returns on internal resources by concentrating investments and energies on what the enterprise does best. 2. Well developed core competencies provide formidable barners against present and future competitors that seek to expand into the company's areas of interest, thus facilitating and protecting the strategic advantages of market share. 3. The full utilization of external suppliers' investments, innovations, and specialized professional capabilities that would be prohibitively expensive or even impossible to duplicate internally. 4. In rapidly changing marketplaces and technology situations, strategic partnership decreases risk, shortens cycle times, lowers investments, and creates better responsiveness to customer needs (Quinn, 1992). · Unlike an organization which requires more paperwork and money to initiate and legally establish itself, a strategic partnership can be relatively inexpensive and easy to set up. A basic partnership agreement can usually be drawn up within a day or two, assuming the parties have considered the issues and discussed the matter before hand (Edwards & Benzel, 1997).
Approximate Word count = 1888
Approximate Pages = 7.6
(250 words per page double spaced)
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