BU288 Lecture 17: Bu288 lesson 17
Document Summary
The external opportunities are: boom in the economy, development of new technology, growing markets, liberal government policies, government subsidies, accelerating market growth etc. (iv) threats are environmental challenges which weaken the organisation"s competitive position. Some of the external threats are: recession in the economy, changing consumer preferences, new technology adopted by competitors, substitute products with high brand image or low cost, foreign competitors, increasing competition, political instability, economic downturn etc. The impact of four variables (s, w, o and t) on strategy formulation is depicted through a matrix. So is the most desirable strategy where organisations use their strengths to exploit environmental opportunities and convert environmental threats into opportunities. In the worst situation, company"s weaknesses match the environmental threats.
