2.2.2 Internal environment
The organisation not only needs to be aware of the social, political and economic environment in which it is operating, but also its internal environment ¾ its own strengths and weaknesses. For example, does a port have financial resources such as cash reserves and access to cheap financing from the government? Does it have human resources with the technological skill, motivation and productivity to bring about a radical change of direction for the port if necessary? Does it have facilities that are up-to-date technologically and/or with excess capacity? Does the port have a commitment to on-going research and development?
The list could go on. However, the aim of the exercise is to attempt to match the s trengths and w eaknesses of its internal environment to the o pportunities and t hreats of its external environment. Hence the name of the exercise, abbreviated to its acronym, is a SWOT analysis .
Table 2.3 is an example of a SWOT checklist. However, as you will see, it is a checklist for the corporate level of an organisation. It contains some marketing items, but a checklist at the level of the marketing function would contain predominantly marketing items. When we discuss the use of marketing plans we will revisit the use of a SWOT analysis.
Table 2.3 The SWOT analysis ¾ A checklistPotential internal strengths A distinctive competence?
|
Potential internal weaknesses No clear strategic direction? |
Potential external opportunities Serve additional customer groups? |
Potential external threats Likely entry of new competitors? |
Source: Thompson and Strickland (1987, p. 98)
Consider this
Are there any items on the checklist that apply to a maritime or logistics company you know of? Can you identify what would be the three greatest strengths, weaknesses, opportunities and threats facing that maritime or logistics company? What is an overall conclusion you would reach about that organisation?
The uncontrollable factors in an organisation's internal environment can be grouped under two broad headings with regard to the marketing function. These are mission and objectives, and resources. We shall deal with each in turn.