Assignment 04: Introduction to SWOT-EFE

Assignment

 

Task: Submit to complete this assignment

Directions

READ Chapters 9, 10 and 17 of the textbook.

REVIEW PowerPoints for chapters 9, 10 and 17 of the textbook.

COMPLETE exercises for chapters 9, 10 and 17 of the textbook.

Using your chosen organization, write a two-page paper with the external factors that could either now or in the future affect your organization. Consider the critical success factors that pertain to the external environment.

Use the SWOT analysis exercise on page 63 of the textbook to assist in your paper writing.

Use third person writings do not use “I think” or “in my opinion” keep it factual, third person and follow APA standards a minimum of two references are required.

Strategic Analysis for Healthcare: Concepts and Practical Applications–Vitalsource [email protected]#magicMAN61

Strategic Analysis for Healthcare

Chapter 9

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

1

SWOT:
External Opportunities and Threats

Analysis of an organization’s strengths, weaknesses, opportunities, and threats is commonly called SWOT analysis.

SWOT brings together analyses from the previous chapters and starts to form a cohesive assessment of the organization.

SWOT does not identify particular strategies but rather identifies issues that may later need to be strategically addressed.

Specific consideration is given to critical success factors in the firm’s industry. The SWOT categories are examined in two dimensions, covering internal and external issues.

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

SWOT:
Internal and External

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

SWOT:
Internal and External

Internally, every organization has both strengths and weaknesses.

As a prelude to developing strategy, the analyst must understand what these strengths and weaknesses are, particularly in relation to the industry’s critical success factors.

Opportunities and threats, described in greater detail later in this chapter, are regarded as the external SWOT factors.

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

SWOT:
Internal and External

The SWOT analysis will serve as the basis for two lines of analysis that we will explore in the chapters ahead.

The first line will involve developing an internal factor evaluation (IFE) and an external factor evaluation (EFE), leading to an internal–external (I/E) matrix that suggests broad strategic directions.

In the second line of analysis, SWOT will form the basis of a TOWS (SWOT written backwards) matrix that will be used to develop specific strategies.

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

SWOT: Lines of Analysis

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

SWOT: The External Analysis

Most strategy texts instruct the analyst to complete all four SWOT boxes

Strategic Analysis for Healthcare

Chapter 10

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

1

External Factor Evaluation

An external factor evaluation (EFE) organizes and evaluates the OT section—opportunities and threats—of SWOT.

The EFE produces a numeric score that reflects the gravity of each issue combined with management’s current response to it.

The resulting score will correspond to certain standard strategies that will be discussed in Chapter 19.

As a starting point, consider that not every item you identified in the OT section of your SWOT analysis is of equal threat or has equal opportunity value.

Some distinction needs to be made between the “great” opportunities and the “could be” opportunities.

To help make these distinctions, review a list of each opportunity and threat.

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

External Factor Evaluation

The strategist evaluates each opportunity and threat and applies a weighting system.

The total weight is 1.00 when all of the weights have been applied and added.

Each individual factor, therefore, receives some portion of 1.00.

The size of that portion reflects the strategist’s subjective evaluation of how important each external factor is to successful competition within the industry.

The more important the factor, the higher is the weight assigned.

The total of 1.00 is the sum of the whole column, including both opportunities and threats.

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

External Factor Evaluation

Opportunities Weight
1 Expansion of Existing Services 0.050
2 Additional Locations 0.100
3 Greater Exposure and Branding 0.050
4 Addition of Trauma Center 0.025
5 Purchasing Additional Practices 0.025
6 Expand into Surrounding Counties 0.075
7 Government Contracts 0.025
8 Residency Programs/Teaching 0.025
9 Expansion of Ancillary Services 0.050
10 Demographic Changes 0.050
Threats  
1 Multiple Competitors 0.100

Strategic Analysis for Healthcare

Chapter 17

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

1

SWOT: Internal Strengths and Weaknesses

As we discussed in Chapter 9, SWOT analysis looks at a company’s strengths, weaknesses, opportunities, and threats.

It brings together information from various analyses to help form a cohesive assessment of the company.

SWOT does not identify particular strategies, but it identifies issues that may need to be strategically addressed.

The SWOT analysis is split into two dimensions: internal issues and external issues.

In Chapter 9, we examined the external factors—opportunities and threats (OT). In this chapter, we will look at the internal strengths and weaknesses (SW).

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

SWOT: Internal Strengths and Weaknesses

A strength can be thought of as any internal attribute of the organization that is helpful in achieving corporate objectives.

Strengths have positive impacts on your organization’s profitability and competitive well-being.

Positive impacts could involve such conditions as strong cash position, effective corporate culture, or superior manufacturing capability.

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

SWOT: Internal Strengths and Weaknesses

A weakness can be thought of as any internal attribute of the organization that is a hindrance in achieving corporate objectives.

Weaknesses pose obstacles to your organization’s profitability and competitive well-being.

Such obstacles could be in the same categories as the issues mentioned above—for instance, poor cash position, weak corporate culture, or inferior manufacturing capability.

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administration Press

Health Administration Press

SWOT: Internal Strengths and Weaknesses

To begin the SW portion of your SWOT, first focus on the internal factors that, either now or in the future, could impact your organization.

Consider the critical success factors that pertain to your organization’s environment.

This information should draw upon your research about the organization in particular, as well as the industry and external environment in general.

Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.

Health Administrati