SWOT Analysis Paper
The SWOT analysis is strategic planning tool used by businesses and organizations to ensure that there are clear objectives defined and that all factors, both positive and negative, are identified and addressed. There are four factors to be considered in accomplishing a SWOT analysis; strengths, weaknesses, opportunities, and threats. Strengths are characteristics within the company that are considered to be important to the execution and success of the project. Strengths describe positive attributes, tangible and intangible, internal to the organization. Strengths are within the control of the organization, which may include the knowledge, background, education, reputation or skills of the people. Tangible assets of the company, such as capital, credit, existing customers or distribution channels, patents, and technology are also examples of strengths. Weaknesses are the internal, negative factors that could prevent the success of a company. These internal factors might include inadequate finances for the project or a weak internal communication system. Opportunities are external, positive factors that represent reasons why a company will achieve the goals. These factors could include the positive perception of the company by the general public, vendors, and market conditions. The last factor of the SWOT analysis is threats, which are external factors beyond the control of the company that place the strategy or the company itself at risk. Threats include changes in supplier prices or availability of raw materials, shifts in consumer behavior, economy, or government regulations and unfavorable market trends.
The SWOT analysis helps clarify and summarize the key issue and opportunities facing a company while helping a business set objectives and develop new strategies. The outcome of a SWOT analysis is to maximize strengths and minimize weaknesses in order to take advantage of external opportunities and overcome threats. Below is a table of an SWOT analysis for the Central Tire Inflation System of TRW Automotive Holdings Inc. SWOT ANALYSIS
TRW Automotive Holdings Inc.
Diversified product profile
High investment in research and development
Strong operational network
Business and product development
Market volume demand trends
Increasing cost of raw material
Internal forces for innovation in organizations develop from a number of sources. Some of these forces include alternations of strategies and plans ethical difficulties that arise because of employee behaviors, and decisions that require innovation.
Intellectual property is any intangible asset that consists of human knowledge and ideas. Some examples are patents, copyrights, trademarks and software. Most such assets cannot be recognized on a balance sheet when internally generated, since it is very difficult to objectively value intellectual property assets. Technology can help or hinder a company. Even with a plan in place you may never know the effect technology will have on the company. The introduction of new equipment or technology can create the need for change within the company. New company strategies, which may involve the change in management practices, enterprise agreements and industrial relations, will create a vast variety of needs for change. The internal culture represents the people who make up the company and their way of operating the business. It is comprised of the beliefs, values, and attitudes of the people internally of the company. Culture is crucial in the success of a company because it is reflected in the work and service provided to customers. It depends on how well the culture abides by its values and demonstrates teamwork. If a culture is a negative environment, it can be damaging to a business because it will reflect in their work.
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