In the present age, businesses have to intensive analysis themselves to improve shortcomings and get higher profit; SWOT analysis is a good way to choose. This essay will introduce the definition of SWOT analysis and the background of why people use it frequently. After that, there will be few examples to proof the opinions of SWOT analysis will help enterprises a lot on proving of their management and strategic planning. The merits and shortcoming when using this process will also explained later. Main body
In this fast-speed changing and highly diversified world, organization and business are struggled to survive in strong domestic and global competition. Companies must face and deal many questions such as expanding industry boundaries, political and economic turmoil, competition among each industries, co-operative and varied philosophies, these questions impose massive constraints to the companies. Increasing customer demands and expectations, deregulation, and constantly changing technologies will add pressure and put companies under ceaseless uncertainty and risk when they are formulating strategies. Effective application, complicated organization internal issues, co-ordination and complementarity of resource requirements, create tension by pairing with the need to achieve levels of excellence and internal politics. Understanding the environment is fundamental of making decision, planning strategic and formulating strategy. As a result, there is an appropriate planning method to fulfill managers to conceive completive strategies, which is based on the needs of the business environment. SWOT is one of the useful analysis methods for making decisions that includes strengths, weaknesses, opportunities and threats (Panagiotou, 2003).
Components of SWOT Analysis
There are many useful analytical methods that can be used in strategic analysis; SWOT analysis is a comprehensive tool to fulfill all the requirements in strategic planning. It is a