BUSN 470 Regent University W 6 The Importance of Strategic Planning Discussion – I will need 2 Response posts (only) to the 2 attached posts below. My orig

BUSN 470 Regent University W 6 The Importance of Strategic Planning Discussion – I will need 2 Response posts (only) to the 2 attached posts below. My original one will also be attached.

– 75-125 Words Each

– Supportive References

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Study from this week:

Compose a post that integrates a complete Bible scripture verse and transcends all aspects of the following question(s) comprehensively and collectively as a single post.

What is the value chain? How is it useful to strategy formulation? Explain
List the types of alternatives that may be generated from a SW/OT matrix? Explain the rationale for each of the alternatives.
Supporting your argument (intext citing shows this)
When all is done, give a brief conclusion
a reference at the end
Strategic Management: Theory and Practice, 5th Edition, (Solon, OH: Academic Media Solutions, 2017) John A. Parnell (Online eTextbook Access Card: ISBN 978-1-942-04128-3)
Good to Great: Why Some Companies Make the Leap–and Others Don’t, 1st Edition, (New York, NY: Harper Business, 2001) James Collins (ISBN-13: 978-0066620992)

Read: Parnell Chapter 9

Collins Chapter 6

View Videos = Copy/Paste the URL unto your browser:

Erica Olsen discusses how to conduct a SWOT analysis. This site provides a detailed discussion of the SWOT framework.

https://www.youtube.com/watch?v=GNXYI10Po6A

Kim & Mauborgne discuss their book, Blue Ocean Strategy, an alternative perspective on strategy development.

https://www.youtube.com/watch?v=7SQDGBSjty4 1
Running Head: DISCUSSION
My Original Discussion
A strategy used to analyze the internal firm activities is known as a value chain analysis.
The main aim of this analysis is to identify the most effective and valuable activities. It ensures
the most productive activities are worked upon before the other less important ones. Value chain
analysis is essential as it contributes to the competitive advantage of an organization. According
to Proverbs 24:6, ‘strategic planning is key to warfare; to win a person needs a lot of
competent counsel’. This emphasizes the importance of value chain analysis and strategic
planning. The organization can control its operations efficiently using this method of analysis
(Hansen et al, 2007).
An alternative that can be used instead of the SWOT analysis is known as the SCORE
analysis. SCORE stands for strengths, challenges, options, responses, and effectiveness,
respectively. This is different from the SWOT analysis in so many ways. For instance, the
negativity found in the SWOT analysis is significantly reduced. Strengths mean identifying the
advantages the organization has. It identifies the things that give the organization a competitive
advantage. Challenges, on the other hand, stand for the difficulties and issues that the project
might experience(Guo et al, 2014). It is essential to note that in the course of a project, it is
bound to experience some problems. It identifies these issues and ways on how to deal with
them. Options stand for the alternatives the organization has in achieving success. These are
other employed methods that could be utilized to achieve success if one defects. Responses, on
the other hand, define the ways to deal with the presenting challenges and options presented.
Effectiveness is the last one, which means identifying ways in which the organization can be
2
DISCUSSION
useful. In essence, all the defined steps contribute to the efficiency and success of the
organization.
References
Guo, S., & Fraser, M. W. (2014). Propensity score analysis: Statistical methods and
applications (Vol. 11). SAGE publications.
https://www.researchgate.net/publication/292696450_Propensity_Score_Analysis_Statistical_M
ethods_and_Applications
Hansen, M. T., & Birkinshaw, J. (2007). The innovation value chain. Harvard business
review, 85(6), 121.
https://hbr.org/2007/06/the-innovation-value-chain
Post #1 – Kyla
The value chain uses the firm’s strengths and weaknesses in order to determine the
economic performance and capabilities of the firm. “Value chain analysis (VCA) can expose
strategic and operational misalignments within chains, and the consequential misallocation
of resources, and hence opportunities for improvements which create value and economic
sustainability.” (Fearne, Martinez, & Dent, 2012, p. 575) The value chain looks into different
activities taking place throughout production and determines effectiveness and efficiency.
Once determined, they can find troubled areas that need work which better helps the
organization.
The SWOT matrix is a combination of one or more strengths or weaknesses combined
with opportunities or threats. “SWOT matrix is considered as a conceptual framework for
system analysis which provides the possibility of analyzing the factors and comparisons,
obstacles, threats, vulnerable aspects, opportunities, demands, and the strong and weak
points of the designed strategy.” (Mirzakhani, Parsaamal, & Golzar, 2014, p. 150) There are
DISCUSSION
3
four categories of alternatives that come from the SWOT matrix: strength-opportunity,
weakness-threat, strength-threat, and weakness-opportunity. When looking into the
strength category, organizations can use the strengths to either minimize threats or address
an opportunity. The weakness category involves bringing up weaknesses that are costing an
organization an opportunity or on the other hand to minimize an effect of a threat.
The Bible reminds us to find strength in Christ. In order to do this, we must first know
where are weakness is to ask the Lord to help us. 2 Corinthians 12:9 reminds us, “And he
said unto me, My grace is sufficient for thee: for my strength is made perfect in weakness.
Most gladly therefore will I rather glory in my infirmities, that the power of Christ may rest
upon me.” (King James Version) It is the same in business, we must know where are
strengths and weaknesses are in order to grow stronger.
Fearne, A., Garcia Martinez, M., & Dent, B. (2012). Dimensions of sustainable value chains:
Implications for value chain analysis. Supply Chain Management: An International
Journal, 17(6), 575-581. doi:10.1108/13598541211269193
Mirzakhani, M., Parsaamal, E., & Golzar, A. (2014). Strategy formulation with SWOT
matrix: A case study of an iranian company. Global Business and Management
Research: An International Journal, 6(2), 150.
Post #2 – Ben
A value chain is one of the most important and useful tools that a business can use in order
to analyze their strengths and weaknesses. In essence, a value chain is all of the processes
that a business follows from beginning to end. For example, a restaurant purchases food
and ingredients, then takes orders from customers, then creates the finished meal using said
ingredients. They then serve the meal to the customer. These are all parts of the value chain.
By understanding all of the parts of a value chain, it can help inform managers on what
areas to improve, focus on, or eliminate entirely. Trying to focus on efficiency is a common
tactic for many businesses but may not always be the best way to create value. According to
Fearne, Garcia, and Dent, “A narrow focus on efficiency may result in reducing waste and
costs but is unlikely to create any additional value” (2012, pg.575).
There are four types of alternatives that can result from a SW/OT analysis, which are:
strength-opportunity, weakness-threat, Strength-threat, and weakness-opportunity. A
strength alternative means that you use a strength of the company, or something that is
done well by them to either address an opportunity or reduce a threat. A weakness threat
alternative involves minimizing a weakness in order to reduce the severity of a threat.
Finally, the weakness opportunity alternative means the company would reduce a weakness
in order to capitalize on an opportunity.
Using these strategic methods is a sound principle that we find echoed in scripture.
Proverbs 18:13 states, “To answer before listening, that is folly and shame” (NIV). If we try
DISCUSSION
to make strategic decisions without properly researching and analyzing the information, it
will surely not be successful.
Fearne, A., Garcia Martinez, M. and Dent, B. (2012), “Dimensions of sustainable value
chains: implications for value chain analysis”, Supply Chain Management, Vol. 17 No. 6, pp.
575-581.
4
Strategic Management:
Theory and Practice
Chapter 9
Strategy Formulation
Strategic Management, 5e. © 2017 Academic Media
Solutions.
Chapter 9: Key Issues
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Fundamentals of the SWOT analysis
Human, Organizational, & Physical Resources
Using the SW/OT Matrix to Help Make Strategic
Decisions
Using the SCLC Matrix to Help Evaluate Alternatives
Issues in Strategy Formulation
© Ribah/Shutterstock
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Strategic Management, 5e. © 2017 Academic Media
Solutions.
SWOT Analysis:
Strengths & Weaknesses
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Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)
Purpose of the SWOT: To organize research and
perspectives into a useful framework for strategic
decision-making.
© dizain/Shutterstock

Strategic Management, 5e. © 2017 Academic Media
Solutions.
Strengths and Weaknesses: Key Concepts
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Gap analysis identifies the distance between a firm’s current
position and its desired position with regard to an internal
weakness. When possible, a firm should take action to close
the gap, especially when it leaves a firm vulnerable to external
threats.
The value chain helps a firm analyze its strengths and
weaknesses, and understand how they might translate into
competitive advantage or disadvantage.
Firm resources are translated into strengths (or weaknesses)
via strategic capabilities, the mechanism through which
individuals in an organization coordinates efforts along one or
more resources to solve a particular problem.
Strategic Management, 5e. © 2017 Academic Media
Solutions.
Sources of Organizational
Strengths and Weaknesses
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Human Resources: The experience, capabilities,
knowledge, skills, and judgment of all the firm’s
employees.
Organizational Resources: The firm’s systems and
processes, including its strategies at various levels,
structure, and culture.
Physical Resources: Plant and equipment,
geographic locations, access to raw materials,
distribution network, and technology.
Strategic Management, 5e. © 2017 Academic Media
Solutions.
Issues to Consider

Board of directors: Tenure, experience,
and present level of investment
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Top managers, including the CEO: Background,
capabilities, experience
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Other managers & employees: Effective HR planning,
training & development, turnover, effective performance
appraisal (PA)
Strategic Management, 5e. © 2017 Academic Media
Solutions.
© EDHAR/Shutterstock
Human Resources
Organizational Resources
Issues to Consider
 Consistency among corporate, business, and
functional strategies
 Consistency between organizational strategies and
the firm’s mission/goals
 Consistency between the firm’s strategies and its
culture
 Consistency between the firm’s strategies and its
structure
 Relative position in the industry
Strategic Management, 5e. © 2017 Academic Media
Solutions.
Issues to Consider
 Currency of technology
 Quality and sophistication of distribution network
 Production capacity
 Reliable access to cost-effective sources of supplies
 Favorable location(s)
Strategic Management, 5e. © 2017 Academic Media
Solutions.
© 06photo/Shutterstock
Physical Resources
Figure 9-1 VRINO Framework
Strategic Management, 5e. © 2017 Academic Media
Solutions.
SWOT Analysis:
Opportunities and Threats
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Whereas strengths and weaknesses are internal,
opportunities and threats are external.
Source #1: Application of macroenvironmental
forces to the organization.
Source #2: Application of industry analysis (Porter’s
five-force model) to the organization
Strategic Management, 5e. © 2017 Academic Media
Solutions.
Opportunities and Threats:
Pitfall #1 to Avoid

Don’t confuse external opportunities with internal
strengths and weaknesses. Factors associated with
the firm such as a poor financial position, an
ineffective marketing strategy, or a strong brand image
are internal factors and therefore must be classified as
strengths or weaknesses. In contrast, factors outside
the firm such as demographic changes, competitive
threats, or recent legislation are external factors and
therefore must be classified as opportunities or
threats.
Strategic Management, 5e. © 2017 Academic Media
Solutions.
Opportunities and Threats:
Pitfall #2 to Avoid
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
Distinguish between opportunities and alternatives.
These words are often interchanged in everyday
speech, but they are not synonymous.
Opportunities represent the application of
macroenvironmental forces to a specific organization.
Alternatives emanate from the SW/OT matrix
(discussed in Section 9-6) and represent specific
courses of action that the organization may choose to
pursue.
Strategic Management, 5e. © 2017 Academic Media
Solutions.
Case Analysis Steps 16–19:
SWOT Analysis
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Strengths and weaknesses come from the analysis of the
firm’s resources.
Opportunities and threats must be rooted in earlier
macroenvironmental or industry analyses.
Do not confuse internal (S&W) and external (O&T)
factors.
Do not confuse opportunities with alternatives.
Opportunities are external factors that are applied to the
firm. Alternatives are specific courses of action the firm
can consider and are developed in the next step of the
analysis.
Strategic Management, 5e. © 2017 Academic Media
Solutions.
The SW/OT Matrix
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The SW/OT matrix utilizes the SWOT analysis to
develop strategic alternatives.
Look for combinations of internal and external
factors that might lead to an alternative.
Alternatives are evaluated in the subsequent step.
© artemisphoto/Shutterstock

Strategic Management, 5e. © 2017 Academic Media
Solutions.
SW/OT Matrix:
4 Categories of Alternatives
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Strength–Opportunity: “Offensive” alternatives, utilize a
strength to address an opportunity.
Weaknesses–Threat: “Defensive” alternatives, eliminate
or minimize a weakness in order to minimize the effect of
a threat.
Strength–Threat: Utilize a strength to minimize the effect
of a threat.
Weakness–Opportunity: Shore up a weakness to enable
the organization to take advantage of an opportunity.
Strategic Management, 5e. © 2017 Academic Media
Solutions.
SW/OT Matrix:
Hypothetical Example for McDonald’s
Strategic Management, 5e. © 2017 Academic Media
Solutions.
SLSC Matrix:
Hypothetical Example for McDonald’s
Strategic Management, 5e. © 2017 Academic Media
Solutions.
Issues in Strategy Formulation
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Strategic change: Do the benefits outweigh the
costs?
Social responsibility and ethics: Is the strategy
compatible?
What effect does the change in strategy have on
existing resources?
How will competitors respond when the change is
implemented?
Strategic Management, 5e. © 2017 Academic Media
Solutions.
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A growth strategy contingent on
inventing or discovering a new industry or industry
segment that creates new demand.
Examples include Starbucks, eBay, and Cirque Du Soleil
in the coffee house, auction, and circus industries.
Success is not highly dependent on competitive
responses, but effective blue ocean strategies require
research, creativity, and a lot of savvy.
Strategic Management, 5e. © 2017 Academic Media
Solutions.
© Songchai W/Shutterstock
Blue Ocean Strategy
Case Analysis Steps 20–22:
Strategic Alternatives
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Use the SW/OT matrix to develop alternatives. Note the
specific combination of internal and external factors
associated with each alternative. “No strategic change”
should also be considered an alternative.
Use the SLSC matrix to evaluate the alternatives.
Evaluate the pros and cons of each alternative.
Select one or more alternatives to implement and explain
the rationale in detail, including why others were
rejected.
Strategic Management, 5e. © 2017 Academic Media
Solutions.

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