1.0) What is a SWOT analysis and why is it important to managers?
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It effect the internal and external factors to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s.It is a systematic framework which helps managers to develop their business strategies by appraising their internal and external determinants of their organization's performance. (Brooksbank, R (1996) The BASIC marketing planning process: a practical framework for the smaller business, Journal of Marketing Intelligence & Planning, Vol 14, 4, P 16-23.)
The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a objective has been defined. Examples included non-profit organization, governmental units, and individuals. (Dealtry, R. (1992) Dynamic SWOT Analysis, DSA Associates, Birmingham, Haberberg, A. (2000), "Swatting SWOT", Strategy, (Strategic Planning Society), September. )
The internal factors viewed as strengths or weaknesses on the organization's objective. The factors include four point: personal, finance, manufacturing, capabilities. The strengths and weaknesses of a company relate to its internal elements such as resources, operational programs and departments such as sales, marketing.
The external factors as opportunities or thread can easily effect an entire organization or business. The factors include four point – PEST : political, economical, socio-cultural, technology which can easily affect business profit.
Strengths: The advantage of an organization or business on a specific area and attributes of the organization that are helpful to...
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