-is an important matching tool that helps managers develop four types of strategies:
STRENGTHS-WEAKNESSES (SO) Strategies
This strategies use a firm’s internal strengths to take advantage of external opportunities. All managers would like their organizations to be in a position in which internal strengths can be used to take advantage of external trends and events.
WEAKNESSES-OPPORTUNITIES (WO) STRATEGIES
WO Strategies aim at improving internal weaknesses by taking advantage of external opportunities. Sometimes key external opportunities exist, but a firm has internal weaknesses that prevent it from exploiting those opportunities.
STRENGTHS-THREATS (ST) STRATEGIES
Use a firm’s strengths to avoid or reduce the impact of external threats. This does not mean that a strong organization should always meet threats in the external environment head-on.
WEAKNESSES-THREATS (WT) STRATEGIES
These are defensive tactics directed at reducing internal weakness and avoiding external threats. An organization faced with numerous external threats and internal weaknesses may indeed be in a precarious position.
Steps involved in constructing a swot matrix
List the firm’s key external opportunities.
List the firm’s key external threats.
List the firm’s key internal strengths.
List the firm’s key internal weaknesses.
Match internal strengths with external opportunities, and record the resultant SO Strategies in the appropriate cell. Match internal weaknesses with external opportunities, and record the resultant WO Strategies. Match internal strengths with external threats, and record the resultant ST Strategies. Match internal weaknesses with external threats, and record the resultant WT Strategies.
Swot matrix limitations
SWOT does not show how to...