Organizational Resources and Capabilities

/in /by

Key External Factors

Weight

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Rating

Weighted Score

Strengths

1. X

2. X

3. X

4. X

5. X

6. x

Weaknesses

7. x

8. x

9. x

10. x

11. x

12. x

Total

1.0

Note: Adapted from David, F. (2013). Strategic management concepts and cases: A competitive advantage approach (14th ed.). Upper Saddle River, NJ: Prentice Hall.

Directions

1. List primary internal factors, starting with strengths first and then weaknesses, using statistics, percentages, ratios, and other quantitative data whenever possible.

2. Consider each factor in weighing how important it is to success in the industry. Each factor’s weight should be between 0.0 (not important) and 1.0 (very important). The sum of all weights must equal 1.0. The weighting is based on industry success factors.

3. For each factor, assign a rating between 1 and 4 to indicate the relative strength or weakness within the organization: a major weakness =1; a minor weakness =2; a minor strength = 3; a major strength = 4. Ratings are company or organization based. When an internal factor is both a strength and a weakness, it should be listed and rated twice.

4. Multiply each factor’s weight by the rating for a weighted score.

5. The highest possible rating is 4 and the lowest is 1. An assessment may be made as to the organization’s vulnerable or weak areas and its positions of strength.

 

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