Convenience

5.
Cite examples of operational plans that you use or
encounter (now or in the past) at work, at school,
or in your personal life.
90
Part 2:
Planning
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BUILDING EFFECTIVE DECISION-MAKING SKILLS
Exercise Overview
Decision-making skills
refer to the ability to recognize
and define problems and opportunities correctly and
then to select an appropriate course of action for solv-
ing problems or capitalizing on opportunities. As we
noted in this chapter, many organizations use SWOT
analysis as part of the strategy formulation process.
This exercise will help you better understand both
how managers obtain the information they need to per-
form such an analysis and how they use it as a frame-
work for making decisions.
Exercise Background
The idea behind SWOT is that a good strategy exploits an
organization’s opportunities and strengths while neutral-
izing threats and avoiding or correcting weaknesses.
You’ve just been hired to run a medium-sized com-
pany that manufactures electric motors, circuit break-
ers, and similar electronic components for industrial
use. In recent years, the firm’s financial performance
has gradually eroded, and your job is to turn things
around.
At one time, the firm was successful in part because
it was able to charge premium prices for top-quality
products. In recent years, however, management has
tried cutting costs as a means of bringing prices in
line with those of new competitors in the market.
Unfortunately, the strategy hasn’t worked very well,
with the effect of cost cutting being primarily a fall-
off in product quality. Convinced that a new strategy
is called for, you’ve decided to begin with a SWOT
analysis.