Business Policy – BUS 490
May, 23rd 2012
1. SWOT matrix is an approach that is used to evaluate the strengths, weaknesses, opportunities as well as the threats that are associated with all the activities of the organization. An organization should conduct a SWOT analysis strategy with an aim of ensuring that it meets all its set goals. More so they will be at a position of identifying their competitors with whom they operate same businesses so as to ensure they remain competitive in the market. When evaluating the strength of an organization, organizations such as American Express should ensure that all the strengths of that organization are listed and more so it should ensure that all the profitable projects are well funded so as to ensure the set goals are achieved which will ensure profitability of the organization (Sharp, 2007). The organization should ensure all the strengths are well managed to ensure that other organizations do not get information on the management of the organization in a, way that they may get to manufacture same products that may confuse their customers for the original product. On the other hand, American Express should identify its weaknesses to ensure they solve their weaknesses in time before competitors realize it. This will ensure that the competitors do not get to take advantage of the weaknesses of the company to take their customers. The information of the organization should remain private and confidential to only the management of the organization to ensure there is no disclosure of information to other competitors. The management should also ensure the weaknesses are identified in time before the organization starts making losses in its sales. Organizations such as American Express should also ensure they identify all the opportunities that that they may venture in, to ensure expansion of the business. For instance, it may seek to establish new business in different part of the world where they may reach a large market share which will to increased profitability of the business. The organization may also, chose to enlarge the mother company other than establishing subsidiary braches in different countries. This will also ensure there are improved products as well as services offered to the customers which will make the organization attract a large market share. For progress in the business, organizations should also ensure that all the threats are identified to ensure the management is at a position of identifying other business organizations that are a threat and may remain to be competitive in the market. Through identification of the organizations that are a threat, an organization will be at a position of ensuring they improve their products and services so as to compete with them. 2. Advantages of SWOT Matrix
SWOT Matrix is an important tool in every organization since it is used to evaluate all factors that ensure productivity of the organization towards the attainment of the set goals. It has an advantage of ensuring that there is increase in the profitability of the business as a result of identifying the opportunities that the organization may venture in. another advantage of the SWOT matrix is that the management team will be at a position of building opportunities as well as focusing on the strengths of the organization. Third advantage is that the organization will be at a position of forecasting future threats to the organization and be at a position of taking caution in all that they do. Lastly it is a flexible activity whereby employees may be allowed to make contributions towards the achievement of the set goals. Disadvantages of SWOT Matrix
There are also some disadvantages associated with SWOT Matrix. For instance, it needs to be conducted regularly for it to be effective. Second advantage is that the process may lack structured information to have all the activities handled effectively. 3....