1. INTERNAL environment is the factors that can affect the internal environment of an organization which can generally be managed for the benefit of the organization, which includes the weaknesses and strengths of the organization.
2. External environment is the external factors that can affect the level of organizational performance and generally can not be managed or controlled by the organization, including the opportunities and challenges of the organization.
A. INTERNAL ENVIRONMENT
Strength: HR (number and quality) is adequate, a high-society work motivation, mastery of science and technology is adequate, inadequate law enforcement, adequate infrastructure and facilities, adequate information systems, adequate financing capability, the potential natural resources, location area strategic, institutional (rules) the government a clear, public institutional support.
Weaknesses: human resources (quantity and quality) are not adequate, low work motivation society, inadequate mastery of science and technology, law enforcement is low, infrastructure and facilities are not adequate, inadequate information systems, financing ability is very low, SDA less potential, location is not strategic, institutional (rules) that do not clear the government, weak institutional community
B. EXTERNAL ENVIRONMENT
Opportunity: The free market makes us free to sell our products and services from anywhere;
Opportunities to increase exports of agricultural commodities due to dollar exchange rate increased;
Skilled manpower in the area have opportunities in other regions;
Capital resources outside the region can be absorbed to develop an investment;
Network access business information is open to be utilized;
National business climate is quite conducive.
B. EXTERNAL ENVIRONMENT
Challenges: Competitors growing much, so the competition becomes more intense in both the domestic and export markets, capital flows out easily society, foreign workers enter the job market in the country / region, western cultural values are negative, the implementation of decentralization is not exactly cause inefficient service and ineffective, the national business climate is not conducive.
STRATEGY FORMULATION BASED ON SWOT ANALYSIS
Formulation of a strategy with a SWOT analysis (Strength, Weakness, Opportunity and Threat) is considered the most effective because it attempts: Using the power to take advantage of opportunities; Overcome weaknesses to take advantage of existing opportunities; Using the strength to face the threat; Overcome weaknesses to deal with threats.
Development in a specific community level is implemented by all stakeholders in government and private sectors and communities according to their duties and functions of each. The implementation of such development will only be optimal if all stakeholders have a clear vision which refers to the overall vision of regional development. Therefore, it will need a program coordination of activities among all stakeholders at both national and local levels.
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