Strategic Planning in the Small Business

Unit 2 HO 2-5 (continued)

aggressively entered

with their products. To counter, Osborne

developed

a new portable computer, the Osborne Executive.

This machine improved on the original Osborne I by providing

more memory storage and a larger screen, yet still sold for a

relatively attractive $2495. Further, the Executive was to be IBM

compaible.

Osborne began publicizing the machine through electronic

journals and publications well inadvance of its

expected delivery

date. Because of the notable improvements over

the Osborne I,

dealers were impressed. Infact, they were so impressed

that they

stopped orders of the Osborne I to wait for the arrival of the

Executive.

Production delays plagued

the Executive. Publicity,wos out,

dealers were ready to order, but the machine was not yet avail­

able. At the same time, sale, of Osborne Iwere falling Osborne

had so effectively convinced dealers of the power of his new

machine that they abandoned the original one. Unfortunately,

the Executive couldn't be delivered. Thus, a two and one-half­

month period of dwindling sales occurred and a debilitating cash

squeeze ensued.

This was one of the key factors

that pushed Osborne Com­

puter Corp. into bankruptcy.

ELEMENTS OF INTERNAL ANALYSIS

Internal analysis is somewhat time consuming and requires

meaningful effort. The rewards for conducting the analysis,

however, are many. The task of compleLing internal analysis is

made easier by first considering the various elements of the

analysis.

Internal Strengths and Weaknesses

One of the most basic, yet

insightful, approaches to internal

analysis focuses on the identification

of internal strengths and

weaknesses. As used here, a strength is any resource or occur­

rence that helps the business in realizing its objectives and strat­

egies, capitalizing on its opportunities, or defending against its

threats. Conversely, a weakness is any factor that hinders the

Chapter Two InternalAnalysis 57

200