Strategic Inputs
So what are the inputs into strategizing? At the most basic level, you will need to
gather information and conduct analysis about the internal characteristics of the
organization and the external market conditions. This means an internal
appraisal and an external appraisal. On the internal side, you will want to gain a
sense of the organization’s strengths and weaknesses; on the external side, you
will want to develop some sense of the organization’s opportunities and threats.
Together, these four inputs into strategizing are often called SWOT
analysis which stands for strengths, weaknesses, opportunities, and threats (see
the SWOT analysis figure). It does not matter if you start this appraisal process
internally or externally, but you will quickly see that the two need to mesh
eventually. At the very least, the strategy should leverage strengths to take
advantage of opportunities and mitigate threats, while the downside
consequences of weaknesses are minimized or managed.