In order to check the performance of this kindergarten, a scan of the internal and external environment is an important part of the strategic planning process. The SWOT analysis was the best tool to be use. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:
Environmental ScanSWOT Analysis Framework
From this SWOT analysis, first, study about strength can be done. Firm’s strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:
Patents i.e Dzul Iman brand.
Strong brand names or service reputation i.e comment about the Dzul iman from the parent.
Good reputation among customers
Cost advantages from proprietary know-how. The cost between the kindergartens at Tronoh area.
Exclusive access to high grade natural resources
Favorable access to distribution networks.
The absence of certain strengths may be viewed as a weakness. For examples, each of the following may be considered weaknesses:
Lack of patent protection
A weak brand name or services job.
Poor reputation among customers.
High cost structure
Lack of access to the best natural resources
Lack of access to key distribution channels.
But in some cases, a weakness may be the flip side of strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered strength that competitors do not share. It is also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.
So come to the external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:
An unfulfilled customer needs especially the parent.
Arrival of new technologies and teaching tools.
Loosening of regulations from the government side.
Arrival of the new competitor in Tronoh.
Finally, changes in the external environmental also may present threats to the firm. Some examples of such threats include:
Shifts in consumer tastes away from the firm’s products and services.
Emergence of substitute products and services.
New regulations that can improve and boost the kindergarten services.
The SWOT Matrix
A firm should not necessarily pursue the more profitable opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm’s strengths and upcoming opportunities. In this case, the company can overcome a weakness in order to prepare itself to pursue a persuasive opportunity.
To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix is shown below:
The SWOT Matrix
S-O strategies – pursue opportunities that are a good fit to the company’s strengths.
W-O strategies – overcome weaknesses to pursue opportunities.
S-T strategies – identify ways that the company can use its strengths to reduce its weakness to external threats.
W-T strategies – establish a defensive plan to prevent the company weaknesses from making it highly liable to external threats.
Head MasterDzul Iman kindergarten basically is using the simple organizational structure. The structure is shown in the figure below.
In this structure, there are direct relationship between leaders and the staff. This structure is common in the small business enterprises such as this kindergarten. The headmaster as a leader has direct control of all operations and activities of the relationship teachers and the owner.