How would one distinguish between an organizational weakness

How would one distinguish between an organizational weakness and a threat to the organization?

Solution

ANS A weakness is a limitation, fault, or defect in the organisation that will keep it from achieving its objectives.Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: things like higher-than-industry average turnover, high levels of debt, an inadequate supply chain or lack of capital

A threat is any unfavourable situation in the organisation\'s environment that is potentially damaging to its strategy. The threat may be a barrier, a constraint, or anything external that might cause problems, damage or injury.Threats refers to factors that have the potential to harm an organization. Other common threats include things like rising costs for inputs, increasing competition, tight labor supply and so on.

A threat is an external danger, while a weakness is an internal vulnerability In business, a threat is an other organization\'s ability to negatively impact your company\'s ability to achieve its goals. For example, another company may have just announced the launch of a new product that performs better and costs less than your product does, thus making it more difficult for your company to achieve its desired sales targets. An example of a weakness within your company might be that you have little research and development funds available, making upgrades to your product more difficult to match your competitor\'s new product. . Weaknesses can exist in other entities too, just as you can harbor threats. In business, managers evaluate all the known and suspected threats and weaknesses across all the relevant organizations (including their own) in an attempt to assess the overall risk factors before undertaking specific initiative

Examples of Weakness of any Company :

Investments in R&D are below the industry average

Very low or zero profit margins

Poor customer services

High employee turnover

High cost structure

Weak brand portfolio

Brand dilution (the firm has too many brands)

Poor presence in the world\'s largest markets

High debt level

Examples of Threats for any Company

Rising pay levels

Rising raw material prices

Intense competition

Increasing fuel prices

Aging population

Stricter laws regulating environment pollution

Lawsuits against the company

Currency fluctuations