The SWOT analysis is the technique used for exploring the internal and external environments of an organization and extracting useful strategies based on its strengths, weaknesses, opportunities, and threats. In many organizations, SWOT analysis technique becomes a framework for helping in the identification of strategies for achieving their goals. The analysis determines what decisions may assist the organization in accomplishing its objectives and what obstacles must be minimized to achieve the desired goals and adjectives.
SWOT analysis covers the internal and external environments and comes up with an approach to effective decision-making (Chan, 2011). The internal factors are inside the control of the organization while the external factors are out of organizations control. Equally, it helps in extracting appropriate strategies on its strengths, weaknesses, opportunities, and threats. In conducting a SWOT analysis plan, an environmental study which involves the scanning of the business environment for threats and opportunities is done (Agarwal, Grassl, & Pahl, 2012). Similarly, the organizational analysis of evaluating the strengths and weaknesses is shown.
This analysis is performed to attain the organizational goals. For an enhanced result, it is done by matching of internal and external factors which offer a combination which can bring success (Helms & Nixon, 2010). After SWOT analysis completion, an action plan is prepared. The method is denoted in a matrix that classifies where the strengths, weaknesses, opportunities, and threats can be leveraged and joined with each other (Ghazinoory, Abdi & Azadegan-Mehr, 2011). It highlights strategic plan on exploiting the strengths and opportunities as well as managing the weaknesses and reducing the threats.
Individuals conducting SWOT analysis may influence process and results in many ways. First, if a person is given wrong information on project weakness, this leads to biased results hence affecting whole process (Coman & Ronen, 2009). Some group individual may not show cooperation in a case where opportunities of the project are similar to competitors to benefit from them. In some instances, confidence may be a problem since the project may involve many individuals who may expose crucial information to competitors hence implanting and benefiting instead.
The first step to countering the threats and weaknesses is through recognizing them and then developing strategies that create the strengths and opportunities for them. A SWOT analysis identifies your strengths, weaknesses, opportunities, and threats to enhance strategic plans and decision-making.
Agarwal, R., Grassl, W., & Pahl, J. (2012). Meta-SWOT: introducing a new strategic planning tool. Journal of Business Strategy, 33(2), 12-21.
Coman, A., & Ronen, B. (2009). Focused SWOT: diagnosing critical strengths and weaknesses. International Journal of Production Research, 47(20), 5677-5689.
Chan, X. (2011). A SWOT study of the development strategy of Haier Group as one of the most successful Chinese enterprises. International Journal of Business and Social Science, 2(11).
Ghazinoory, S., Abdi, M., & Azadegan-Mehr, M. (2011). SWOT methodology: a state-of-the-art review for the past, a framework for the future. Journal of business economics and management, 12(1), 24-48.
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysiswhere are we now? A review of academic research from the last decade. Journal of strategy and management, 3(3), 215-251.
If you are the original author of this essay and no longer wish to have it published on the collegeessaywriter.net website, please click below to request its removal:
- Term Paper on the Gravity Inc. Case
- HR Report Example: Organisational Behaviour in Australian Organisations
- Criterion B5-Exploitation and Harassment at IBIS Hotel - Paper Example
- Performance Management in the Pedersen Company - A Case Study Example
- The Impact of Leadership Style on the Success of a Companys Supply Chain: A Case Study of Laerdal Medical ASA
- Walmar Analysis - Paper Example
- Management Paper Example: Balanced Scorecards