The SCOC analysis is an asset-based strategic planning tool focusing on the core strengths of a business, building upon what it claims to be the shortcomings of a traditional SWOT analysis. Indeed, the SCOC analysis claims that the SWOT analysis focuses on threats that might never materialize, thus underweighting potential opportunities.
|1. Internal Strengths (S)||Internal strengths refer to the positive attributes, capabilities, or resources that the business already possesses or excels at.||– Identify and assess the core internal strengths of the business. – Consider what sets the business apart in a positive way.||– Recognizes areas of excellence and competitive advantages. – Provides a foundation for strategy development based on existing strengths.||– Identifying and leveraging core competencies in product development. – Recognizing strengths in the team to optimize project outcomes.||Recognizing a company’s strong brand reputation and loyal customer base. Identifying a team’s expertise in a specific technology.|
|2. Internal Challenges (C1)||Internal challenges involve identifying issues or areas where improvements are needed and how existing strengths can be applied to address them.||– Assess internal challenges within the business that require attention. – Explore how internal strengths can be used to solve these challenges.||– Encourages problem-solving and innovation using existing strengths. – Promotes efficient use of resources to address internal issues.||– Using expertise in process optimization to streamline operations. – Leveraging employee skills to address productivity challenges.||Applying advanced technology to improve manufacturing efficiency based on internal expertise. Using marketing strengths to address declining sales in a specific market segment.|
|3. External Opportunities (O)||External opportunities represent favorable conditions or factors in the external environment that align with the strengths of the business.||– Identify external opportunities that are well-suited to the strengths of the business. – Consider how strengths can be leveraged to seize these opportunities.||– Capitalizes on external conditions that complement the business’s capabilities. – Enhances the business’s competitiveness and market positioning.||– Identifying emerging market trends that align with product strengths. – Leveraging technology expertise to enter new markets with high demand.||Expanding into a new geographical market where there is a strong demand for the company’s product. Capitalizing on a growing trend that aligns with the business’s expertise.|
|4. External Challenges (C2)||External challenges involve identifying potential obstacles or difficulties in the external environment and maintaining a positive mindset when facing them.||– Recognize external challenges or obstacles that the business may encounter. – Emphasize the importance of a positive, open, and creative mindset when addressing challenges.||– Encourages a proactive approach to external challenges with a constructive attitude. – Fosters adaptability and resilience in the face of difficulties.||– Responding to changes in market regulations with an innovative mindset. – Embracing technological disruptions as opportunities for growth.||Adapting to a new regulatory environment with creativity and a solution-oriented mindset. Embracing digital transformation as a chance for business expansion and efficiency improvement.|
Understanding the SCOC analysis
In a SWOT analysis, decision-makers tend to spend most of their time repairing weaknesses and speculating about external threats. The end result is that is the positive aspects of a company – strengths and opportunities – are not given the attention they deserve.
Practitioners of the SCOC analysis argue that the SWOT analysis is a deficit-based approach to strategic planning. Businesses end up planning for threats that never materialize and their focus on negative outcomes blinds them to avenues for growth.
The SCOC analysis is a more balanced approach. It does not exaggerate weaknesses and threats, nor does it undervalue strengths and opportunities.
Running a SCOC analysis
A SCOC analysis is an asset-based approach that considers four key areas:
- Internal strengths – what is the business already doing well?
- Internal challenges – how can these strengths be used to solve current or predicted challenges within the business?
- External opportunities – what are the external opportunities most suited to the strengths of the business?
- External challenges – how can the business face external challenges with a positive mindset? This is a key differentiator of the SCOC analysis, encouraging decision-makers to maintain an open, curious, and creative mindset when faced with difficulties.
Why is the SCOC analysis important?
As noted in the introduction, businesses that conduct SWOT analyses tend to become preoccupied with identifying and then planning for negative outcomes.
This phenomenon has been extensively studied. Scientific research has found that negative emotions in have approximately three times the impact of positive emotions.
The SCOC analysis is important in helping decision-makers avoiding devoting company resources to problems that may be overstated or worse still, non-existent.
Mindfulness-based strategic awareness
Here, mindfulness is combined with aspects of positive psychology to encourage leaders to adopt a results-oriented focus on business strategy. This gives them the ability to perceive, create, and capitalize on potential opportunities for growth.
Importantly, an awareness of the positive aspects (or strengths) of strategy achieves better outcomes for the business and improves company culture. It also gives the employees within a business the cognitive flexibility to adapt to new challenges.
- The SCOC analysis is an asset-based and solution-focused strategic planning tool.
- The SCOC analysis was created to address a tendency for decision-makers to become preoccupied with weaknesses and threats in a SWOT analysis. In many cases, this preoccupation blinds the company to strengths and opportunities.
- The SCOC analysis is one of a host of similar analyses advocating a mindful approach to strategy formulation. This allows decision-makers to combine mindfulness with positive psychology to focus on core strengths and the meeting of challenges with an open mind.
- Strategic Planning Tool:
- Balanced Approach:
- Four Key Areas:
- The SCOC analysis considers four key areas: internal strengths, internal challenges, external opportunities, and external challenges.
- Internal Strengths and Challenges:
- Identifies what the business excels at (strengths) and how those strengths can be utilized to address existing or anticipated challenges.
- External Opportunities and Challenges:
- Focuses on external opportunities that align with the business’s strengths and approaches external challenges with a positive mindset.
- Avoiding Overemphasis on Negatives:
- The SCOC analysis helps prevent the allocation of resources to exaggerated or non-existent problems by shifting the focus to strengths and opportunities.
- Mindfulness-Based Strategic Awareness:
- Aligns with mindfulness and positive psychology principles, encouraging leaders to adopt a results-oriented focus and capitalize on growth opportunities.
- Improved Outcomes and Culture:
- Promotes better outcomes for the business, improves company culture, and enhances the cognitive flexibility of employees to adapt to new challenges.
Connected Analysis Frameworks
Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business Models, Jobs-To-Be Done, Design Thinking, Lean Startup Canvas, Value Chain, Value Proposition Canvas, Balanced Scorecard, Business Model Canvas, SWOT Analysis, Growth Hacking, Bundling, Unbundling, Bootstrapping, Venture Capital, Porter’s Five Forces, Porter’s Generic Strategies, Porter’s Five Forces, PESTEL Analysis, SWOT, Porter’s Diamond Model, Ansoff, Technology Adoption Curve, TOWS, SOAR, Balanced Scorecard, OKR, Agile Methodology, Value Proposition, VTDF Framework, BCG Matrix, GE McKinsey Matrix, Kotter’s 8-Step Change Model.