When we talk about of strategic decision making in an organization, we must take consider many factors that must be studied within the company. For that, there are several useful tools such as SWOT analysis, which is meant (strengths, Weaknesses, opportunities, and Threats), this method is the simplest and effective way to analyze the present and see how will be the future of the company.
The main purpose of this analysis is to support the organization to locate the strategic aspects, both favorable and unfavorable, for this, locate the strengths, reduce the weaknesses, take advantage of the opportunities and minimizing or eliminating the threats that may present. This analysis is based on two very clear terms: the internal and external analysis of the organization.
Internal Analysis: At this point we consider several aspects such as (people, leadership, strategy, alliances / resources and processes). •Strengths: They become the strong points that the company has. Are the resources, capabilities, skills or positions achieved that result corporate advantages and improvements that can serve as opportunities from competition or the external environment. •Weakness: Come be the weak points the company has. Are limitations that affect the proper development strategies are threats that must be controlled and overcome. It must take into consideration the analysis of resources, activities and risks.
External Analysis: At this point we consider several aspects such as (the market, the sector and competition). •Opportunities: These are all aspects that are considered corporate benefits, are all those improvements that can support growth and profitability. •Threats: Come be all those external forces that could endanger the implementation of strategies or survival of the company. If these threats are identified early can be converted into opportunities for business.
PEST analysis is one of the most used and helpful when identify the...