...Strategic Management: SWOT analysis’ advantages and disadvantages Decision-making and problem-solving techniques Strategic Management is defined as a set of managerial decisions and actions that determines the long-run performance of a corporation. It includes a variety of tools and analysis which help implement, evaluate and control the general strategy of a company. Strategy formulation begins with a situational analysis and it emphasises the monitoring and evaluating of external opportunities and threats in light of a corporation´s strengths and weaknesses (Wheelen and Hunger, 2006; Saloner et al., 2001). Objective The objective of this report is to describe, analyse and discuss advantages and disadvantages of a concept named SWOT which is an acronym for Strengths, Weaknesses, Opportunities and Threats. These concepts are frequently used as tools for analyzing the external environment of an organisation as well as the internal factors that constitutes its structure (Wheelen and Hunger, 2006). History SWOT analysis came from a research conducted at Stanford Research Institute in the 1960´s. The creation of the SWOT analysis comes from the need to find out why corporate planning failed. The research was funded by the fortune 500 companies to find out what could be done about this. Albert Humphrey together with his team began testing this tool and it suddenly became a corporate planning trend, which seemed to appear first at Du Pont in 1949 (Morrison, 2009; Friesner...
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...The Advantages of SWOT Analysis Because of the constantly changing conditions in the monetary market, the quick response to challenges becomes more and more important to all companies. However, in order to survive in the economic battle, business owners should make the best use of the SWOT analysis to gain a thorough overview of their business. The SWOT analysis is a management tool that is mainly for observing the strengths, weaknesses, opportunities, and threats of business. It can be used on companies, as well as on persons, to identify their internal and external elements, evaluate the overall conditions, and make strategies and future plans according to the results. As Simoneaux, and Stroud (2011) state in their article “SWOT Analysis: The Annual Check-Up for a Business” that one of the main benefits of the SWOT analysis is that it makes people thinking and preparing in advance to challenges, not the late solution to the problems(2011, p75). However, some people point out that because of the simplicity of either conducting the analysis or the analysis itself, the results of the SWOT analysis may not be as accurate as people think. Although SWOT analysis may not generate specific solutions to the existing or approaching problems, it still has the advantages of low cost, clarity of business‘s overall conditions, and the unlimitedness of applying to any kind of business. The one main advantage of SWOT analysis is the low cost. In recent marketplaces, nearly everyone can run...
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...Strategy development by using SWOT - AHP Dijana Oreski1 1 Faculty of Organization and Informatics, University of Zagreb, Pavlinska 2, Varazdin, Croatia Abstract –This paper employs combination of SWOT analysis and Analytic Hierarchy Process (AHP) in strategic planning for tourism of small mid-european city Varazdin, which is located in the north west of Croatia. SWOT analysis identifies internal and external factors which are prioritized by expert in tourism domain by means of AHP. The prioritized SWOT factors are used in strategies formulation using TOWS matrix. Results indicate that proactive communication strategy and isolation strategy with effective marketing promotional strategy were the best strategies that could have been implemented. Keywords – SWOT, AHP, strategy formulation. cases in the strategic management process. One of them is the SWOT analysis. This article explains the SWOT analysis, provides the theoretical background and an overview of the application of the SWOT analysis. As some authors have identified weaknesses of the SWOT, analysis is combined with a method for multi-criteria decision analytic hierarchy process (AHP) in order to avoid these disadvantages. Therefore, in the second part of the paper AHP method and SWOT AHP hybrid method are described. Following the basic steps method, SWOT AHP is applied to the example of the city of Varazdin strategic marketing plan definition. 2. SWOT analysis SWOT is an acronym of strength, weakness, opportunities...
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...A h Tools esearc to R Guide SWOT Analysis Eva Chen Paul Bruneski SWOT Analysis Strengths, Weaknesses, Opportunities, Threats History of SWOT In the 1960’s and 70’s, Albert Humphrey is said to have developed this strategic planning tool using data from the top companies in America at the time. A SWOT Analysis looks at the strengths, weaknesses, opportunities and threats that are relevant to an organization in a new venture. A SWOT Analysis is a tool which allows users to look at the direction a company or organization may wish to move towards in the future. A SWOT Analysis is a useful tool, which in conjunction with others can help make informed decisions. Table of Contents History of SWOT Definition of SWOT 1 1 Internal and 2 External Factors Guides for using SWOT 2 Potential Uses of 3 SWOT Strengths & Weaknesses of the method 3 Example: SWOT 4 of British Airway Definition of SWOT By specifying clear objectives and identifying internal and external factors that are either helpful or not, a short and simple SWOT analysis is a useful resource which may be incorporated into an organizations strategic planning model. Strengths- Internal attributes that are helpful to the organization to achieving its objective Weaknesses – Internal attributes that are harmful to the organization to achieving its objective Opportunities – External factors that help the organization achieve its objective Threats - External factors that are harmful to the organization...
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...Running head: SWOT ANALYSIS ON AT&T'S WEBSITE SWOT ANALYSIS ON AT&T'S WEBSITE Graciela Pineda-Blasco Strayer University - Doral Campus Abstract Although many marketing professionals nowadays think that SWOT analysis is outdated and too broad to be effective for a proper online marketing / website analysis this tool still provides the most basic key items required for a good business and marketing plan. The SWOT analysis includes the elements required in the strategic planning process that helps the analysts uncover the Strengths, Weaknesses, Opportunities and Threats in the business. The value of the SWOT analysis tool relies on the fact that it requires the analyst to specify the business goals and objectives as well as to identify the internal and external factors that are favorable or unfavorable to obtaining those goals and objectives. For this particular case study we will use the SWOT Analysis tool with the purpose to measure AT&T's rate of success in delivering the high-quality customer service thru their website. SETTING THE GOALS It is important to note that prior to proceeding with the SWOT analysis the priority relies upon setting the goals for this exercise. According to the July issue of the Visible Ranking website “your website / online marketing goals must be in line with your overall mission and goals.” Based on this principle the following SWOT analysis will be aligned with AT&T’s corporate mission: “Today, our mission is to connect...
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...TABLE OF CONTENTS Introduction 1 Internal Environment 2 SWOT Analysis in the Internal Environment 2 Strengths 3 Weaknesses 4 Opportunities 4 Threats 5 Recommendation 5 Conclusion 6 References 7 Introduction SWOT is an acronym used to describe the internal Strengths and Weaknesses of the firm and the environmental Opportunities and Threats. By description, Strengths (S) and Weaknesses (W) are considered to be factors within the control of the firm. Opportunities (O) and Threats (T) are external factors over which the firm has essentially no control. It is the most prominent tool for assessing and analyzing the overall strategic position of the business and its environment. Its main purpose is to ascertain the strategies that will create a firm specific business model that will best align an organization’s resources and capabilities to the requirements of the operating environment. It is the foundation for evaluating the internal potential and limitations and the likely opportunities and threats from the external environment. It examines all positive and negative factors inside and outside the firm that will affect its success. A steady analysis of the environment in which the firm operates aids in predicting the changing trends and includes them in the decision-making process of the organization. If accurately applied, information gained through SWOT analysis can be utilized by the firm to determine its most desirable options in matching...
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...Haas, Frederick-SWOT SWOT Analysis- Description Before developing a SWOT analysis it is necessary to understand the organization’s business plan. This will ensure that the marketing plan supports the business plan. Elements of the business plan consist of the organizational level mission, vision, goals, objectives, and strategies. The marketing department must understand the organization’s mission, or what defines the company’s reason for existence. It must also understand the strategic vision, which is where the company wants to see itself in the future. It must prioritize organizational goals that support the mission and vision to become attainable objectives. From this information an organizational strategy is developed to accomplish the mission and objectives. There are four dimensions of an organizational strategy that must be analyzed in order for marketing to support organizational goals. The first dimension is a competitive strategy that Michael Porter separates into three categories: Low-cost, differentiation, and focus. The process involves identifying the organization’s core competencies, or, things the firm does exceedingly well. If the organization determines that part, or all of their core competencies are superior to those of their competitors, they are defined as distinctive competencies. A sustainable competitive advantage can be realized when an organization focuses on their distinctive competencies, especially if it is difficult for...
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...The SWOT analysis is a business method that an association can perform for its products, services, markets when settling on the most ideal approach to accomplish future development. The analysis includes distinguishing the strengths and weaknesses of the association, and opportunities and threats introduce in the business that it works in. The SWOT analysis is a well-known and multiple purpose tool, but it includes many of subjective decision making at every step. it better be used as a guide not as a prescription and it is as iterative procedure. There isn’t one definition for SWOT for all organizations, as it varies depending on the organizations’ resources and conditions. The SWOT analysis factors are classified into internal and external factors. Strengths and weaknesses are internal. Moreover influenced and controlled by the organization itself. While on the other hand, opportunities and threats are controlled by the external environment. A strength is something that has a positive influence. It provides value, or offers the organization the opportunity to own a competitive advantage. Strengths include tangible items, for instance; available capital, credit, loyal customers, equipment, information, and processing systems. Weaknesses are the characteristics of your product or service that are unfavorable to the growth of your organization. Opportunities can occur for many reasons and could be a result from changes within the market, and developments in technology, new...
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...SWOT Analysis You've heard the saying 'if it isn’t broke, don't try to fix it.' In certain circumstances, this is definitely true; however, in business, it is almost always false. Maintaining a competitive advantage in the marketplace requires organizations to be in a state of constant renewal by examining what they are doing well and what they need to improve on. While an organization may not be 'broke,' so to speak, every organization can be better in some way, shape or form. One of the most commonly used tools in strategic management and managerial decision-making is known as the SWOT analysis, which is an acronym for strengths, weaknesses, opportunities and threats. The SWOT analysis can be universally applied in a variety of situations, such as introducing a new product to the market, project management, changing distributors, expanding to another location, outsourcing and so on. During a SWOT analysis, an organization will proactively assess its internal environment for strengths and weaknesses and then examine the external environment for opportunities and threats. The internal environment refers to things that go on inside the company that, for the most part, the organization is in control of. Examples of the internal environment include: * who you hire to work for your organization * the skills and knowledge of your employees * the chain of command * what products or services you offer * what price you charge your customers * your margin...
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...SWOT Analysis Annette Fairchild Foundations of Business: BUS/210 July 2, 2014 Instructor: Frank Caccamo SWOT Analysis The business plan that I have chosen is Adorable Pet Photography. My new company will be a small business operating out of Ashland, Virginia. We will offer pet owners portrait quality photography services both in our onsite studio and at their home or event. Using the latest technology we will use computer graphics to enhance their pet’s portraits and offer a wide array of backgrounds to choose from. We will also do candid shots to capture that perfect expression or pose that showcases their pet’s personality; as well as family shots that display their love for one another. My studio will offer a comfortable and relaxing environment where pets and their families can feel free to have fun and just be themselves for the optimal photographic experience. I also have mobile equipment for doing photo sessions off-site. We can travel to the owner’s home or favorite park to capture their pet in action for an additional fee. I graduated from the New York Institute of Photography, and I have over 10 years of experience working with both people and animals. My photographs have been featured in such Magazines as East Coast Living, Richmond Family Magazine, and the American Kennel Club Magazine. I have an established relationship with the local SPCA where I supply photos for adoption free of charge. I also have an established relationship with...
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...To: Dr. Kuman College of Business and Science From: student MBA 711-02 Subject: SWOT analysis for Custom Coffee & Chocolate According to the overview of Custom Coffee & Chocolate business, it is a small café run by Bonnie Brewer and Stacy Kim. It is located near a university, so their main customers are students, faculty, staff and local residents. Kim and Brewer work together without any employees initially, and they run their business successfully. They sell their products in the café only. Kim and Brewer wanted to make some developments to their business. They should launch strategies to achieve their aims. There are many steps that they have to consider before they start launching the strategies required for the developments. They have to analyze the company internal and external environment and identify its strengths, weaknesses, opportunities and weaknesses. Custom Coffee & Chocolate major strength is its owner’s knowledge acquired during their courses in business, management, and marketing, along with their experience gained at work. Other strengths of the business include the strategic location, unique products of coffee and chocolate, loyalty of customers, growing reputation of the business and good understanding of some of their customers. However, Custom Coffee & Chocolate have some weaknesses such as poor menu, small market share, small area of the café, tight capital, limited advertisement and struggle to set prices. As we consider opportunities...
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...which competencies are essential to conducting a strengths, weaknesses, opportunities, and threats (SWOT) analysis, and how competencies relate to the essential competencies for conducting a SWOT analysis. The work culture results states that I am high-powered, supportive and an expert. These results will allow me to better understand my strengths and weaknesses in the work place along with allowing me to achieve my organizational and personal goals. The competencies that are essential to conducting strength, weaknesses, opportunities and threat analysis are external and internal analysis The External Analysis examines opportunities and threats that exist in the environment. Both opportunities and threats exist independently in a company. The way to differentiate between a strength and weakness from an opportunity or threat is to ask: Would this issue exist if the company did not exist? If the answer is yes, it should be considered external to the firm. Opportunities refer to favorable conditions in the environment that could produce rewards for the organization if acted upon properly. That is, opportunities are situations that exist but must be acted on if the firm is to benefit from them. Threats refer to conditions or barriers that may prevent the firms from reaching its objectives (http://mystrategicplan.com/resources/external-analysis/#sthash.KgH4dcrD.dpuf) The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages...
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...TO: Prof.XY FROM: XY DATE: March 23, 2014 SUBJECT: SWOT Analysis Business Brief The following assignment requires Custom Coffee & Chocolates Company analyzes of the internal and external environment, identifying its strengths, weakness, opportunities, threats and develop strategies for the matches. Coffee drinking is one of the most world spread and consume habits of all time. Americans consume 400 million cups of coffee per day, equivalent to 146 billion cups of coffee per year, making the United States the leading consumer of coffee in the world. The Huffington Post (February 11, 2011). These consumed routine and behavior led many people to start up their own occupational in the coffee business. One such sample is close friends and ex roommates Bonnie Brewer and Stacy Kim, who decided to open a café which will offer coffee and fine chocolates. Holding a cafeteria is certainly an occupational who offers plenty of possibilities; on the other hand it is a business with an exceptional high competition. Necessary strategies, for successful story In the modern competitive business if you want to be the best you should be the first among all, offering customers something new, something different or you should be competitive by offering low-priced services. Although sounds that simple, those are the basic rules. Logically, you could not become the greatest overnight because it needs many years of time and resources. However, in imperative of more successful business...
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...SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats | | |Main Section |Contributed by Val Renault | | |Edited by Jerry Schultz | What is a SWOT analysis and why should you use one? When do you use SWOT? What are the elements of a SWOT analysis? How do you create a SWOT analysis? How do you use your SWOT analysis? Opposition is an inevitable part of change and one that can significantly impact your community organizing. However, if you know how to take stock of the opposition inside and outside of your effort or group, you are more likely to plan and act effectively. That's where SWOT analysis comes in. SWOT can help you handle both ordinary and unusual situations in your community health or development initiative, by giving you a tool to explore both internal and external factors that may influence your work. What is a SWOT analysis and why should you use one? The name says it: Strength, Weakness, Opportunity, Threat. A SWOT analysis guides you to identify the positives and negatives inside your organization (S-W) and outside of it, in the external environment (O-T). Developing a full awareness of your situation can help with both strategic planning and decision-making. The SWOT method (which is sometimes called TOWS) was originally developed...
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...Definition: SWOT analysis is not only limited to profit-seeking organizations but also may be used in any decision-making situation when it is desired for an organization. It is use to develop a plan that takes into consideration many different internal and external factors, and maximizes the potential of the strengths and opportunities while minimizing the impact of the weaknesses and threats. This remarkable technique was provided by Albert S Humphrey, one of the founding fathers of what we know today as SWOT analysis. SWOT analysis came from the research conducted at Stanford Research Institute from 1960-1970. A strategic planning method which is used to evaluate the Strengths, Weakness, Opportunities and Threats involved in a project or in a business or in an organizations venture. The team members and the managers mainly use this analysis on behalf of an organization. It specifies the objective of any business venture or project to identify both the external and internal factors which are sometimes favorable and unfavorable to achieve that objective. Strengths, Weaknesses, Opportunities and Threats (SWOT): It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. The factors (internal and external) may include all of the 4P's; as well as personnel, finance, manufacturing capabilities...
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