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SWOT Analysis Strategy - Assignment Example

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SWOT analysis is a tool used in strategic management to understand the strengths and weaknesses internally, and identify opportunities available and threats faced by a business entity. By analyzing strengths and weaknesses, a company will be able to formulate a strategy to…
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Download file to see previous pages he environment by identifying the strategies creating a firm specific business model that best aligns the organization’s resources and capabilities to the requirements of the environment in which it operates.
The acronym SWOT stands for, as has been alluded, to strengths, weaknesses, opportunities and threats. Each of these has a strategic implication to the business, and proper analysis will show a true picture of the organization’s place in the business environment. Strengths and weaknesses are internal to the business entity directly controlled by it while opportunities and threats are external, and a company can only anticipate and react to the changes. As such, analysis is instrumental in strategy formulation and selection to pursue the optimum possible position.
For success to be realized, strengths should be build upon, weaknesses rectified, opportunities exploited and protect against threats. Strategic planning is enhanced by SWOT analysis as it is a source of information for strategic planning to identify core competencies, and setting of objectives. From the knowledge of the past and present, the future can be comfortably planned (Pearce & Robinson, 2012). Let us consider each of the four substrata in the SWOT matrix.
An organization’s strengths are either tangible or intangible qualities which enable it to accomplish its missions. They form the basis under which success can be laid and sustained. They include patents, brand names, good reputation, exclusive access to resources, technical know-how by employees, and distribution network. The firm must have distinct features giving it consistency. The employee expertise, process capabilities, finances, products/services with customer goodwill and brand loyalty form the foundation for the organization to thrive.
These are qualities hindering the firm from achieving its mission and accomplishing optimum potential by hindering the organization’s success and growth. The absence of certain strengths ...Download file to see next pagesRead More
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