1.6 Organizational Planning Tools

SL Learning Objectives:

A. Business Plans
  1. Analyse the importance of the information in the business plans to different stakeholders.

B. Decision-making framework
  1. Apply a formal decision-making framework to a given situation

C. SWOT Analysis
  1. Prepare a SWOT analysis for a given situation.
  2. Analyse an organization’s position using a SWOT analysis.

A. Business Plans

Learning Objective A.1: Analyze the importance of the information in the business plans to different stakeholders.

B. Decision-making framework

Learning Objective B.1: Apply a formal decision-making framework to a given situation

C. SWOT Analysis

Learning Objective C.1: Prepare a SWOT analysis for a given situation.

A SWOT Analysis takes into account both the internal and external factors that reflect the organization's position.
The acronym SWOT stands for: Strengths, Weaknesses, Opportunities, Threats.
  • Strengths and Weaknesses are internal factors which may affect the performance of the organization
  • Opportunities and threats are external factors which may affect the performance of the organization
    • These two aspects can be further sub-categorized into Political, Economic, Social and Technological aspects

The image below facilitates the understanding of the SWOT analysis. There are examples of factors in each category which can be considered when a SWOT analysis is made.

(image from : http://www.bizstrategies.biz/swot-analysis.html)

Below is an example of a SWOT analysis conducted for a television broadcasting company in Hong Kong named Televsion Broadcasts Limited on December 2009.

Logo of TVB:


§ It is the only local television broadcasting company listed in Hong Kong

o Through listing, it raises more capital from the general public compared to its competitors for further technology investment a business development.

§ TVB signs over 4,500 contracts with Hong Kong and international artists

o The company has a talented pool of artists who can help produce high quality television programmes

§ The firm offers bilingual (Cantonese and English) programmes of a wide variety, including news reports, drama productions and documentary

 series. They are not only broadcasted in Hong Kong, but also distributed to more than 30 countries overseas.

o The company has a wide range of programmes that satisfy the needs of audiences from different age groups and cultural



§ TVB was founded by Sir Run Run Shaw and is currently overseen by his wife, Mona Fong, behind the scenes. She has the overriding

 authority over management decisions.

o To some extent, good corporate ideas and creativity are being constrained

§ Stephen Chan, the general manager of TVB, has a popular television show of his own, namely “Be My Guest”.

o As the general manager, Chan should focus more on the company’s strategy and business development. In the long run, the

 company may suffer from lack of sufficient long-term planning and development.



§ On December 23rd, 2009, the government announced that the Broadcasting Ordinance would not be amended for letting Cable TV to apply

 for a free-to-air license.

o Without the entry of a new competitor, TVB’s market share in the free-to-air television broadcasting market will have room for



§ The major competitor in the domestic free-to-air broadcasting market, Asia Television Limited (ATV), has been suffering from internal

 management issues and a lack of external capital over the years. Thus, it produces relatively low quality programmes.

o Corporations will prefer putting advertisements on TVB channels instead of ATV’s. TVB benefits from increasing revenues as a result.


§ In general, the Hong Kong public favors TVB programmes over ATV’s. Recent data gathered by CSM Media Research reflects that the

 average audience share of TVB channels is 85%, whereas ATV’s share is only 15%.

o TVB’s revenues will increase because businesses will more likely place moreadvertisements on TVB channels rather than ATV’s.


§ Improvements in audio and visual broadcasting technologies enhance the viewing quality of programmes being released.

o The number of viewers will be increased, and more companies will put their advertisements on TVB channels.



§ After many reported cases of unscrupulous sales tactics, the Legislative Council urged the government on December 23rd, 2009 to monitor

 these improper practices via stricter measures.

o The sales medium and strategy may be confined. As such, TVB Pay Vision, a subsidiary of TVB, may also suffer from shrinkage of customer base.


§ North American countries are currently in economic recession after the global financial crisis.

o People in these countries may not be willing to spend extra money to pay for TVB programmes offered via paid channels.


§ A research conducted by Hong Kong Research Association in 2009 indicates that 59% of the respondents had expressed concern over TVB’s

 dominance among free-to-air stations.

o This may impact the corporate image of TVB and result in reduction of advertisements on TVB channels


§ Since TVB’s launch of the Digital Terrestrial Television Services (DTT) on December 31st, 2007, most television programmes can now be

 viewed under high definition (HD) quality.

o These state-of-the-art broadcasting technologies require high maintenance costs. Therefore, the cost per production increases.

Learning Objective C.2: Analyse an organization’s position using a SWOT analysis.

By looking at the SWOT analysis, the organization's position can be determined/ analyzed.

Using the SWOT analysis above as an example, TVB's position on December 2009 is summarized below:

Television Broadcasts Limited stands in an advantageous position compared to its competitors, nearly being the monopoly of the market. Though there are oppositions to its dominance in the market, the Hong Kong government does not have the right to take action because there is no evidence that TVB is violating the rules of the Broadcasting Ordinance.