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Module 8

Pre-reading issues

  1. Does the work of a company depend on any internal or external factors?

  2. Name some factors that can influence the company’s performance.

  3. Should a company’s top management busy themselves with working out the company’s strategy? Why?

Swot analysis

The particular process that is commonly used in strategic planning is an analysis of the company’s strengths, weaknesses, opportunities and threats, also known as the SWOT analysis.

Strengths and weaknesses are factors that exist within the organization. The strengths tend to be easier to list than the weaknesses as everyone wants to claim that they contribute to the organization.

Threats and opportunities exist outside the organization. The term “opportunity” refers to those factors outside the organization that are favorable to the organization. The threats are those factors outside the organization that are not good news for the company.

What the company chooses to do with that information depends on what gets stated in the other categories. What is important to realize is that potential future directions for the organization are not identified at this stage – that comes a bit later.

Once the SWOT is concluded, there are four strategies to choose from in order to guide future directions: 1) growth, 2) stability, 3) retrenchment and 4) combination.

Growth means exactly that the organization is going to grow in some way.

A stability strategy means that the company is going to maintain the status quo. They are going to continue what they have been doing up till now. Nothing is going to change. No increase in production, no new markets, no growth in the number of employees.

Retrenchment means that somehow the company will be cutting back. That could include selling off some assets, reducing the number of products that they sell or getting out of some countries in which they now operate.

A combination strategy is more common with a large, multi-divisional company. With a combination strategy, one division of the company will pursue one strategy while another division follows another strategy.

The strategies outlined flow directly out of the SWOT analysis. Done correctly, the strategies and the SWOT analysis form a great package.

(From: Susan Quinn. Management Basics)

Text comprehension

  1. What is SWOT analysis?

  2. Do strengths and weaknesses exist within or outside the organization?

  3. What is easier to list – strengths or weaknesses? Why?

  4. What are the factors outside the organization?

  5. Which of them are good and bad ones?

  6. How many strategies can a company choose from? What are these factors?

  7. What does the phrase “maintaining the company’s status quo” mean?

  8. How can retrenchment affect the company’s life?

  9. What kind of company is a combination strategy more typical of?

  10. In what case can the SWOT analysis and the strategies form a great package?

Vocabulary and grammar acquisition

1. Read the words paying attention to the pronunciation of the bold-typed letters. Consult a dictionary if necessary.

Strategic, strengths, opportunities, threats, within, claim, contribute, refers, realize, guide, growth, retrenchment, exactly, maintain, status quo, nothing, production, employees, could, assets, products, multi-divisional, pursue, while, done, package.

  1. Pronounce the words with the prefix multi-. Translate them into Russian.

Multi-access, multi-cultural, multi-ethnic, multi-lingual, multi-millionaire, multi-national, multi-skilled, multi-tasking, multichannel, multicolored, multidimensional, multidirectional, multifunctional, multilateral, multimedia.

  1. Translate the following expressions into Russian.

Particular process; commonly used; the company’s strengths, weaknesses, opportunities and threats; contribute to the organization; to guide future directions; in some way; to maintain the status quo; up till now; no growth in the number of employees; selling off some assets; a large, multi-divisional company; pursue/follow a strategy.

4. Find English equivalents in the text.

Стратегическое планирование; внутри организации; заявлять; за пределами организации; относится (к); благоприятный; немного позже; сокращение (экономия); точно; увеличение производства; каким-то образом.

5. Pay attention to the underlined parts of the following sentences. Explain what they mean.

  1. What the company chooses to do with that information depends on what gets stated in the other categories.

  2. Once the SWOT is concluded, there are four strategies to choose from.

  3. Retrenchment means that the company will be cutting back.

  4. That could include selling off some assets, … getting out of some countries in which they now operate.

  5. The strategies outlined flow directly out of the SWOT analysis.

  6. Done correctly, the strategies and the SWOT analysis form a great package.

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