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What are the strategic issues? Are they due to lack of resources or capabilities or are they due to the pursuit of wrong strategies? Are they strategy implementation issues?

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Company: Dana INC 
STRATEGIC ISSUES AND RECOMMENDATIONS

What are the strategic issues? Are they due to lack of resources or capabilities or are they due to the pursuit of wrong strategies? Are they strategy implementation issues?  

A starting point for understanding strategic issues is by comparing the competencies and competitive advantages required for success to what the firm actually has. A SWOT analysis done through industry and internal analysis as above is required for the company which you are presenting. After evaluating company strengths and weaknesses, and industry opportunities and threats, place the firm in one of the following four categories:

1.    Abundant environmental opportunities and significant internal strengths
2.    Abundant environmental opportunities but significant internal weaknesses
3.    Major environmental threats but significant internal strengths
4.    Major environmental threats and significant internal weaknesses

Clearly, category 1 is the most favorable situation.  The firm’s strategy should be to pursue aggressive growth that will use its internal strengths to exploit the abundant external
opportunities. In category 2, the strategy should be to eliminate weaknesses either by acquiring the needed competencies through joint ventures and alliances or vertical mergers so that opportunities can be effectively exploited.  In category 3, the strategy should be either to alter industry forces using the firm’s strengths (depending on the threats) or diversify into more attractive industries.  Category 4 is an extremely unfavorable situation. This is a firm, according to Porter, that has a weak competitive position in an unattractive industry. The firm should consider repositioning by moving into another segment in the industry or gain the required strengths through horizontal mergers.

275 Words  1 Pages
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