Tag Archives: Strategic planning

Beware of the SWOT Analysis

Posted on by
1

SWOT

Every good business or marketing strategy book will tell you that one of the most essential pieces of analysis to perform for your company is a SWOT analysis.  This method, attributed to Albert Humphrey, a management  consultant from the Stanford Research Institute, has been around for more than half a century, is often one of the first things strategic planners will have you perform.

  • Strengths:  Look at the characteristics, skills sets, experience, or assets that give you an advantage in the market place
  • Weaknesses:  Determine the elements about your business that put you at a disadvantage to others in your industry
  • Opportunities:  Identify things that you may see in the business environment that you may be able to take advantage of for increased sales or profitability
  • Threats: Point out those things in your environment that could lead to decreased sales and profitability

This seems to be a very reasonable and beneficial analysis to perform for any business – review both your internal and external situation and make decisions from there.  Right? What could be the harm?

Continue reading →

Share

The Value of Casting a Long-Term Vision

Posted on by
Reply

Organic company growth is typically seen as something that is steady.  Five to twenty-five percent a year growth is deemed reasonable and in many cases aggressive.  Hockey stick growth, that which is 50, 75, 100+ percent growth in a single year and then sustained at high rates in a few subsequent years, is usually thought to only occur through acquisitions or mergers. This does not always have to be the case and a shift in planning processes may in fact make periods of rapid growth possible organically.

Frame of reference for planning makes a difference

Most planning processes are done annually and look at where a company is today as the basis for determining where things will be in the next year.  Realistic growth targets are established based upon current performance.  Forecasts are often done taking that growth out three to five years.  With the current situation as the frame of reference, it is difficult to justify large changes in growth with out an acquisition or some other exogenous force.

Since some companies do experience hockey stick growth organically, we know that it is possible.  What are rapidly growing companies doing that is different from those who experience modest growth and how to they plan for it?

Click here to read the whole post.

Enhanced by Zemanta

Share