Purpose of a SWOT Analysis
PURPOSE OF A SWOT ANALYSIS 1
The Purpose of a SWOT Analysis
Charles Anderson Joyner III
Grantham University
PURPOSE OF A SWOT ANALYSIS 2
Abstract
Every business to include the largest ones that control their areas of industry--has a limited supply of manpower, production capacity and capital. Evaluating the company’s strengths, weaknesses, opportunities, and threats helps it determine how to allocate these resources in a manner that will result in the highest possible potential for revenue growth and profitability. The management team examines where the company can compete most effectively. The company more times than not discovers competitive strengths that have not been fully utilized in the past in addition to critical areas that needs to be improved in order for the business to more effectively compete. A realistic assessment also prevents strategic blunders like entering a market with products that are clearly inferior to what well-entrenched competitors are offering.
Continuous improvement in all areas of a company’s operations is an important aspect of staying ahead of competitors. Weaknesses and opportunities can--and must--be turned into future strengths. PURPOSE OF A SWOT ANALYSIS 3 Strengths, weaknesses, opportunities, and threats (SWOT) analysis is a necessary, straightforward standard that assists in direction and serves as a foundation for the development of business’s marketing strategy. It brings about this process through assessment of the organization’s strengths (what it can do) and weaknesses (what it cannot do) in addition to opportunities (potential favorable conditions for
The Purpose of a SWOT Analysis
Charles Anderson Joyner III
Grantham University
PURPOSE OF A SWOT ANALYSIS 2
Abstract
Every business to include the largest ones that control their areas of industry--has a limited supply of manpower, production capacity and capital. Evaluating the company’s strengths, weaknesses, opportunities, and threats helps it determine how to allocate these resources in a manner that will result in the highest possible potential for revenue growth and profitability. The management team examines where the company can compete most effectively. The company more times than not discovers competitive strengths that have not been fully utilized in the past in addition to critical areas that needs to be improved in order for the business to more effectively compete. A realistic assessment also prevents strategic blunders like entering a market with products that are clearly inferior to what well-entrenched competitors are offering.
Continuous improvement in all areas of a company’s operations is an important aspect of staying ahead of competitors. Weaknesses and opportunities can--and must--be turned into future strengths. PURPOSE OF A SWOT ANALYSIS 3 Strengths, weaknesses, opportunities, and threats (SWOT) analysis is a necessary, straightforward standard that assists in direction and serves as a foundation for the development of business’s marketing strategy. It brings about this process through assessment of the organization’s strengths (what it can do) and weaknesses (what it cannot do) in addition to opportunities (potential favorable conditions for
References: SBUX Basic Chart | Starbucks Corporation Stock - Yahoo! Finance. (2011, January 30). Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved January 30, 2011, from http://finance.yahoo.com/q/bc?s=SBUX Basic Chart&t=5y Starbucks Corporation. (2010, October 3). Annual Report- Fiscal 2010. Roby, L., 2011. Retrieved from http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1237&context=honors Murphy, P. (2011, January 26). Brazil could be world No. 1 coffee drinker by 2012. Bose, N., 2011. Starbucks signs pact to enter India. Business & Financial News, Breaking US & International News | Reuters.com http://www.reuters.com/article/2011/01/13/india-starbucksidUSSGE70CB9T20110113 Liu, L., 2009 Ferrell, O., Hartline, M., Lucas, G., Luck, D. 1998. Marketing Strategy. Orlando, FL: Dryden Press.