Managers need to know where they are now if they are to be able to decide where they are going. SWOT analysis gives managers a chance to examine the external environment within which the organization operates and the internal state of the organization. SWOT stands for Strengths, Weaknesses, opportunities and threats. Strengths and weaknesses are factors which are specific to the firm while opportunities and threats arise from the external environment.
First, Strengths in one of the internal factors. To know what are these strengths is to state what the organization is best at or what intellectual property do they own also the financial resources they have. Like in the case study of the Sweet Dream Motel Mr. Smith the owner of the Motel have Grounds that are fairly bare with a bit of landscaping but mostly grass which can be used for more space to the hotel. Also the rooms of the motel are more likely family style and large rooms also they serve breakfast to the rooms and provide tea making facilities.
Then, we have the weaknesses which can be figured by what the worst they are at doing. Like what training does the work force lack or what force work do they have? As for Mr. Smiths case the lack of occupancy can be quite frustrating because cars pull in, drive around the parking areas then drive away. New development could mean trouble.
To know what weakness in other competitors to attack can be an opportunity for the organization also the changes in the external environment can be exploit by the company or the organization like in Mr. smith's prices are less than half of what similar motels charge and only a fraction of what the big five star properties are charging that how he can strike other competitors and benefit from their weaknesses.
As for the threats it can be produced by external environment factors that can open up threats to the organization and harm the business. And get an opportunity for the competitors to be able to...