Question

1) How would SWOT analysis strengthen the strategic management process -externally and internally

2) Managers cant empower all employees in this context explain how mbo is effective

Answer 1

Solution. 1)When an organization decides to enter into a competitive economic market, it sets a general objective of meeting set target of profit along with social impact in society. Managers are given the responsibility of setting plan and control activities for business to sustain for long. An organization needs to employ SWOT analysis ascertains an organization's strengths, weaknesses, opportunities and threats.

Internally, SWOT analysis helps in identifying organization's management strengths and weaknesses. Management records information of its strengths and tries to align its weaknesses which are under internal control to meet its objectives effectively and efficiently. It helps in identifying factors which management needs to work and analyze for smooth run of business operations.

Externally, SWOT analysis helps in identifying external factors which an organization operates in namely,opportunities and threats. Opportunities factors help in determining factors with the help or use of which, an organization can develop new strategies for expanding business whereas, threat factors will help an organization in ignoring activities with adverse results.

SWOT analysis helps an organization by informing about different above mentioned factors and helps a manager to develop strategies that will turn a threat into opportunity and weakness into strength. It needs active participation of organization's people to understand and develop and facilitate in strategic management process.

2)Managers work does not stop just at evaluating its organization's strengths, weaknesses, opportunities and threats. It needs to find a strategic solution to different factors which will result in favorable consequences. Such decision making activities needs help of MBO model developed by Peter Drucker. Management by Objectives encompasses both managers and employees agreement and work towards achieving organizational objectives by keeping in mind different factors. MBO demands employee's objectives alignment to meet organization's objectives. In this process, management controls the activities at different levels and helps in achieving and converting unfavorable conditions to favorable ones.