The first tool that can be used is the SWOT analysis. This is a tool that helps a company define and look at their Strengths, Weaknesses, Opportunities and Threats on mostly an internal level. A company uses this tool to dissect the areas that they exceed in and the areas of improvement, the areas of opportunity they can take advantage of and where other companies can pose a threat to their business. This is a powerful tool that can, with a little thought, help a company uncover opportunities that are well placed for exploitation by the organization (Manktelow & Carlson, n.d.). This tool also helps a company understand its weaknesses and in turn manage and eliminate threats that could catch the organization unaware. The following are a list of items that could follow under each category:
• Strengths: market share, production methods, company reputation, patents
• Weaknesses: high material costs, high labor costs, slow delivery times
• Opportunities: Growing customer needs, new technology, countries with little government regulation.
• Threats: competitors lowering their prices or offering like products in the same market, new government regulations, supply pricing continues to rise.
By looking at FFI through the framework of a SWOT analysis, a global strategy can be developed that will help distinguish the organization from its competitors, allowing for it to compete successfully in the market.
The next tool that can be used for analysis is the Cost Benefit Analysis. (Repurposed from MGMT640) A cost benefit analysis estimates and totals up the equivalent money value of the benefits and costs to an organization for projects to establish whether they are worthwhile. These projects can range anywhere from highways and dams to healthcare systems and training programs. The impact of a project is the difference between what the situation would be with and