Levis Swot Analysis

4.3. Strategy Development

4.3.1. The development of a SWOT analysis

The SWOT (Strengths, Weaknesses, Opportunities and Threats) will be analysed in respect of the key performance areas identified so as to uncover existing deficiencies, efficacies and efficiencies, enabling the PMO teams to produce creative ideas for organisational improvement.

4.3.1.1. Strengths could include market dominance, leadership and management acumen, and a sound financial position.

4.3.1.2. Levi Strauss weaknesses could include underperformance of its shares, dearth of core strengths and skills, old technology, poor structural arrangements, and lack of innovation.

4.3.1.3. Identifying the potential threats whilst developing scenarios clearly showing what could happen

Fast changing customer trends, 1993, Levi’s 501 jeans were no longer trending amongst kids to which Levi’s failed to adapt whilst all its competitors did, and

4.3.1.4. Opportunities that should be or could be exploited include the growing casual wear market, innovative technologies. And the low manufacturing and production costs in international markets.

4.3.2. PESTEL analysis

This will seek to consider external issues that the organisation could face, Steyn 2010, and will include:

4.3.2.1. Political circumstances that are almost completely outside the control of the organisation.

4.3.2.2. Economic issues that are often heavily influenced by global circumstances, as well as local political policy deficiencies.

4.3.2.3. Socio-cultural needs that are often diversified, particularly as the organisation has operations in various countries across the world.

4.3.2.4. Technological innovation that plays a major role and is often a major driver of transformation and change in organisations.

4.3.2.5. Ecology as this is becoming progressively important and often dictates policy in organisations.

4.3.2.6. Legal issues related to compliance and conformance to the dictates of the law and the focus on ethics, and the prevention of corrupt

The gap analysis, having been developed from the assessment of the “as-is” and “to-be” situations, is then used to formulate appropriate strategic options for Levi Strauss that will lead to value chain effectiveness and higher productivity.

This process will culminate in the development of the Levi Strauss Strategic Plan that contains a list of actions; which are specific, time-bound and measureable goals and objectives; that enable the achievement of key accomplishments described in the target state situation i.e. the achievement of benefits of strategic importance for Levi Strauss.

These strategies constitute business cases will then become projects that will be prioritised as part of the strategic transformation portfolio so as to enhance value chain effectiveness. These then forms the transformation programme plan after which the projects will be baselined i.e. the Strategy Plan with all business cases for the implementation of strategic transformation