I must say before reading the chapter this week I have never heard of a SWOT Analysis. After reading the chapter it makes perfect sense in how companies use it strategically to be more competitive in the industry that they are in. In choosing which areas of the SWOT Analysis to discuss in this paper I have taken the financial side into perspective. For the Strength I have chosen - Our financial position and credit rating are good. For the Weakness I have chosen – Lack of a formal budget process results in expenses. For the Opportunities I have chosen – Most of our customers use us for only part of what our products can be used for. For the Threats I have chosen – New competitor has lured away two of our employees with offers of better pay. I will take each of the issues at hand and discuss the strategies that management should take to better the company by taking advantage of their strengths and opportunities and using them to reduce the impact of the weaknesses and threats. Strength
As a company with a positive financial books and a good credit rating you want to ensure you are making the right decisions in your company to ensure your books stay on the positive side so your credit rating doesn’t begin to decline. For a business prospective this is crucial as the better your credit rating the more money you have available to you if by chance you are looking to expand your company in the future. As a business leader one needs to have strategic plan in place and within that plan have goals and objectives for the company to meet. Many members of an upper management team come into a business with a vision in place as to where they see the company going. To have a positive financial outlook and a great credit rating can be a great start in ensuring the goals and objectives they have set in place can be completed.
When setting up a business it is crucial to maintaining positive cash flow and positive books...