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Basic Models The following three models are a foundation upon which the subsequent strategic planning models were developed. Please refer to the Glossary of Terms. These models were created for the business world. However, many universities have found them to be useful, and were able to adopt them not only to the needs of higher education in general, but to the special needs of specific universities. One of the most important benefits of these models is flexibility and adaptability. They can be used in a variety of ways, using approaches specific to a particular setting, to create a unique picture of the institution's distinctive environment. SWOT analysis identifies factors that may affect desired future outcomes of the organization. The SWOT model is based on identifying the organization's internal strengths and weaknesses, and threats and opportunities of the external environment, and consequentially identifying the company's distinctive competencies and key success factors. These, along with considerations of societal and company values, lead to creation, evaluation, and choice of strategy. SWOT's objective is to recommend strategies that ensure the best alignment between the external environment and internal situation (Andrews, 1980, Christensen et al., 1982 in Mintzberg, p. 36-37; Hax & Majluf, 1996, p.27; CSUN strategic planning leadership retreat, April 1997; Hill & Jones, 1992, p. 14). |
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SWOT analysis is usually presented in the following form: | |||||||||||
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ANSOFF In Igor Ansoff's model, "strategy ... is designed to transform the firm from the present position to the position described by the objectives, subject to the constraints of the capabilities and the potential" of the organization. This model specifically stresses two concepts. Gap analysis is designed to evaluate the "difference (gap) between the current position of the firm and [its] objectives." The organization chooses the strategy that "substantially closes the gap." Synergy refers to the idea that firms must seek "product-market posture with a combined performance that is greater than the sum of its parts," more commonly known as "2+2=5" formula (Ansoff, 1965, in Mintzberg, p. 43-45). The five forces model developed by Michael E. Porter guides the analysis of organization's environment and the attractiveness of the industry. The five forces include the risk of new competitors entering the industry, threat of potential substitutes, the bargaining power of buyers, the bargaining power of suppliers, and degree of rivalry between the existing competitors (Porter, 1985). Environmental scan identifies external opportunities and threats, evaluates industry's overall attractiveness, and identifies factors contributing to, or taking away from, the industry attractiveness (Hax & Majluf, 1996, p.27). Through organization's choice of strategy it can alter the impact of these forces to its advantage. This is a graphical interpretation of Porter's five forces model (Porter, 1985, p. 5), including examples relevant for higher education: |
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Please click here for a complete list of References |
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