Strenght Weakness Opportunities and Treats analysis

SWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. the awot anylysis provides information that is helpful in matching the firm's resources and capabilities to the competitive enironment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits an enironmental scan. STRENGHTS: A firm's strenghts are its resource and capabilities that can be used as a basis of developing a competitie advantage. example of such strenghts include: patients, strong brand names, good reputation among customers, cost adantages from propriety know -how, exclusive access to hig grade natural resources, favorable to distribution networks. WEAKNESS: the absence of certain strenghts may be viewed as a weakness .For example lack of patient protection, a weak brandname, poor reputation among customers, high cost structure. I n some cases weakness may be the flip side of a strenght. for example a firm has a large amount of manufacturing capacity . while this capacity may be considered a strenght that competitors do not share, it alos may be a considered a weakness if the large investment in manufacturing capacity prevent the firm from reacting quickly to changes in the strategic environment. OPPORTUNITIES The external environmental analysis may reveal certain new opportunities for profit and growth. fro example an unfulfilled customer need, arrival of new technologies, loosening of regulations, removal of international trade barriers, TREATS Changes in the external environmental also may present treats to the firm. For example shifts in customers tastes away from the firm's products, emergence of substitute products, new regulations, increased trade barriers. SWOT Matrix: The SWOT Matrix helps visualize the analysis. Also, when executing this analysis it is important to understand how these element work together. When an organization matched internal strengths to external opportunities, it creates core competencies in meeting the needs of its customers. In addition, an organization should act to convert internal weaknesses into strengths and external threats into opportunities. http://www.quickmba.com/strategy/swot/ postes bu 20700735 entry number 3

Global Management, R&D to Drive Up SK

I read about an article of Korea’s third-largest conglomerate SK’s Research and Development. SK wants to expand their company globally, and is aiming to solidify its position overseas and widen research and development in the life sciences industry. SK, established SK International (SKI) this year to maximize the efficiency of all offices abroad (They have offices at U.S, China, and Vietnam.). Chey Tae-won, the Chairman of the company is searching for new opportunities to be in the top conglomerate in the world. He met several leaders during a conference called Davos and discussed constructing a U-City in Saudi Arabia and a cude oil processing plant in Kuwait with President Roh Moo-hyun. Company officials say the CEO’s strategy in global management is directly translated into company revenue. SK earned $25 billion last year and assuming approximately $27 billion this year. The Core businesses in SK are energy and telecommunications which both made an important leap outside Korea. SK telecom has selling mobile phones in U.S and China. They are searching for more countries to launch their product by entering the Indian and Indonesian markets that seems to have potentials. They are also currently carrying out exploration projects worldwide with the company currently securing proven reserves of 510 million barrels of oil in fourteen countries such as Brazil, Peru, and Vietnam.
For Research and Development, SK invested one trillion won this year for the first time which is 14 percent of the company’s annual investment. They have six operating local R&D centers and opened seven more during the same period to expand into diverse research areas. Also, there are more than 2000 staff researchers overseas such as New Jersey, Shanghai, and Bejiing to focus more on R&D. There are several successful R&D and one of the examples of it is Advanced Catalytic Olefin (ACO) technology. It gives higher overall olefin yields. The company’s investment on R&D does not stop and is planning on extend ongoing developments by setting next year’s R&D budget about 10 percent higher.

http://koreatimes.co.kr/www/news/nation/2008/03/234_14691.html


20620042 – Entry 3

SK Telecom's Discounts on Data Roaming in Asia

          In an effort to increase data usage in overseas, the largest wireless company in Korea, SK Telecom, is giving a major discount on data roaming service in eight Asian countries. The discount would be applied through a flat-rate data plan beginning on April 14, and it would allow internet users in countries like Hong Kong, Singapore, India, Malaysia, Indonesia, the Philippines, Australia and Taiwan, to have an access to internet 85 percent cheaper than the normal rate. However, the discount would not be applied to the voice calls.
          This new business strategy was possible because SK Telecom and other 11 large wireless operators in Asia, SingTel of Singapore, Maxis of Malaysia, Bharti Airtel of India and Telkomsel of Indonesia, had agreed on joining the "Bride Alliance." According to the article, "the Bridge Alliance has about 200 million subscribers in 11 nations. SK Telecom joined them last year as its 10th member." (BussinessWeek)
          Although the current data usage in other countries is not that big, SKT is expecting it would fit the increasing demand of international data service. The promoting data service would be available only for SKT's WCDMA services. SK Telecom's goal is to "...encourage the use of automatic roaming of WCDMA phones and make SKT's roaming leadership concrete via partnership with global players." (BusinessWeek)
          I'm not a passionate data user since the rate is relatively very expensive and there are not that many components that I need from mobile internet service. However, I heard that many industries are now using such technology to connect employees in overseas together and communicate through mobile internet or e-mail services. I think it would be very pleasant news for many businessmen since they could save a lot of money when they use data service in some of the countries in Asia. It's yet only for SK Telecom users; however, both KTF and LG Telecom are now competing aggressively over reducing rates of both voice and data service, I think it's a matter of time that the other two would follow the steps that SK Telecom is doing now.

Reference;
http://koreatimes.co.kr/www/news/biz/2008/03/123_21508.html

20601008 - 3rd Entry

NOKIA in Korea

I read an article which gives information about recent Mobile Phone business in South Korea. It says that NOKIA is meeting the opportunity to expand its market rate in Korea. Well, we all know that this Finnish brand is the number one competitor in mobile phone business in the world. According to the article, its market share percentage is even bigger than the sum of Samsung, Motorola and Sony-Ericsson. Then, what makes it so fresh news that NOKIA is expanding its market share in Korea?

In the past days, NOKIA wasn’t able to perform well in Korea. The mobiles service operators in Korea were somewhat hostile to other phone-making companies like NOKIA, which are not Korean companies. Also, the Korean government was definitely not familiar to companies from other nations. It had lots of regulations and barriers. However, the situation is getting changed. These days the Korean government is realizing the fact that they should open the mobile phone market to other nations’ companies to prevent monopoly by few companies in Korea, or to lessen the monopoly situation. In addition, the mobile service operators in Korea - KTF, SKT, and LGT – is trying to adapt the WCDMA system which is an universal platform, and NOKIA owns many core technologies there and can produce good phones at lower prices compared to other makers. Either way, it is an ongoing truth that NOKIA is getting more and more favorable view and treats from Korea.

It is definitely good news to NOKIA and other corporations in mobile phone business which are trying to enter the Korean market. However, there are some argues whether it is good or not to Korea itself. To customers who want to have different mobile phones other than they used to have will greet this situation. And to customers who want to have various selections of mobile phones will be pleased to have the opportunity to buy phones from other companies. It is good news to the customers. But, there is some aspect that is not good. Even though the world is getting more and more related to each other and globalization is not news anymore, it doesn’t mean that there should be no barriers in business. Very exclusive barriers are not good because the customers won’t get enough advantages. But also, very few barriers are not good because it won’t be able to protect domestic companies from the attack of other nations’ companies. Well, I guess the most important thing is to be moderate. Not so exclusive and not so familiar.

Reference : http://www.koreatimes.co.kr/www/news/tech/2008/03/129_20853.html


20700273 - Entry 3

Succession Planning: The most critical work for the Board

I read a article about succession planning of companies. Actually, I didn't read something like this article. In Korea, the succession of CEO is almost same as the succession of ownership. Because Korean enterprisers have an unusual concept that their children should succeed their businesses. But the article says that the planning of succession is very critical work. In America, there is many boards, but few boards are planning the next generations of their CEOs or managers. If they don't prepare this project, their company can be bankruptcy soon. The CEO's tasks are so important that these can influence the possibility of the company's survival.
Today, many major companies in America, are going bankruptcy because of the errors of poor CEOs. When Boards don't prepare for the succession of CEO, they can make mistakes in the process of selecting their new CEO. And this can cause a disaster to their company.
Then, why the boards have difficulties in deciding the planning? The main cause is the lack of well-defined process. When they pick their CEO, they just look at the candidates' talented resume and it's the final of their planning. But resume is not important thing. The adaptability of candidates is more important. The main cause of bankruptcy is not a absence of talented CEO, but it is a disorder of important processes.
We have to know our leaders. It isn't limited to a business abilities, but it also includes the leader's families and their states of health, and their hobbies. You might think this is no use, but the success of key to company is the stability of the CEO.

reference: http://www.businessweek.com/managing/content/mar2008/ca20080325_494855.htm?chan=careers_managing+index+page_top+stories

20700067 -entry 3