Strategic Planning using SWOT analysis

Revision as of 21:41, 23 February 2021

Abstract: - The article is all about strategic planning within the organization by using SWOT analysis. SWOT analysis is the method or process which helps to identify strengths, weaknesses, opportunities & threats helps in evaluating and in growing the organization, person, plan or project. This study shows the position of SWOT analysis process in strategic planning and examined the components of the SWOT analysis with its advantages & disadvantages. This study also includes SWOT analysis of an international electronic or computer hardware & printer brand.

Keywords: - SWOT analysis, strategic planning

INTRODUCTION

Strategic management is the set of settlements & measures which determines long term performance of the corporation. It consists of internal as well as external factors, evaluation & control & strategic applications. It helps the company to become more active than reactive. Strategic planning is necessary for the management of the company to uplift the company using strategic management tools. In strategic management there are step by step analyses of the company by taking into consideration both internal & external factors by which a company gets affected. Every company has its different & unique approach in applying the strategic management. It starts from the vision and mission of company by which they implement step by step strategic management process. Strategic management includes the following factors or step by step process.

• Vision
• Mission
• Objectives
• Internal / External factors.
• Strategic choice
• Strategic implementation.
• Competitive advantage.

SWOT analysis is one of the tools of strategic management which is used to measure the internal or external factor. By conducting SWOT analysis, it gives the result of companies, personal or projects weakness, strengths, threats & opportunities. It also helps in examining the competitors company condition. It helps to know in which area the company needs improvement or which area it is good in and what is the impact of the resources and environmental condition on the company.

SWOT ANALYSIS

SWOT analysis is the tool of strategic management which is used to do strategic planning in the company. It helps to analyze the factors inside the company as well as outside the company. In SWOT analysis management can examine the strength, weaknesses, threats & opportunities by which we can analyze the state of the company from inside and outside. With this management can take decision on factors which can be converted into opportunities and the weaknesses to strength. This whole process of analyzing the company on basis of environmental factors is called SWOT analysis. “SWOT Analysis is a simple but powerful tool for sizing up a company’s resource capabilities and deficiencies, its market opportunities, and the external threats to its future”. SWOT Analysis may be a strategic planning framework utilized in evaluation of a corporation, a plan, project or a business activity. SWOT Analysis is therefore a big tool for situation analysis that helps the managers to identify organizational and environmental factors. SWOT analysis consists of two dimension which are internal (includes organizational factor) & external factor (includes environmental factors).

In SWOT analysis there are four components which are strengths, weaknesses, opportunities & threats. From this factors strengths & weaknesses are considered to be internal factors & opportunities & threats are considered to be external factors. SWOT analysis is usually drawn in four quadrants. It includes the points of considering the all aspects under the respective headings. Strengths and opportunities are useful for the pursuit of corporate goals. They are optimistic, companies, with. The accomplishment of corporate goals is harmed by vulnerabilities and challenges. They are the for companies, unfavorable. An overview of strategies is also the basis of any good selection of strategies. In other words, the task of the manager is to try to 'suit' the appraisal of externalities and internalities, to reconcile the strengths and limitations of the company in the light of environmental opportunities and challenges. The capabilities and limitations of the company in terms of prospects and risks to the environment.

• Strengths: -

The attribute that brings meaning to something and makes it more special than others is power. Power means that as opposed to something else, something is more favorable. In this way, power applies to a competitive, positive and revolutionary factor. Organizational strength comprises elements and capabilities from which an organization achieves an edge over other companies and competing organizations that are discovered as a result of its internal climate study. In other words, the features and circumstances in which a company is more effective and efficient than its competitors are characterized by organizational power. Organizational attributes are organizational competencies that play an active role in the accomplishment of organizational objectives. Before going into action when a challenge or opportunity is found, a company must consider the ability it has and the elements that make it more advantageous than its competitors. Organizational attributes are organizational competencies that play an active role in the accomplishment of organizational objectives. Before moving into action when a challenge or opportunity is found, a company must consider the capacity it has and the aspects that make it more beneficial than its The adversaries. For a company, being strong and possessing strengths are very important. Otherwise, it is not possible to exploit the resources provided by the outside world. In addition, by using its strengths, the company needs to adapt to the challenges of the outside world.

• Weaknesses: -

Weakness refers to not having the sufficient form and competency for anything. When compared to something else, vulnerability means that something is more disadvantageous. Weakness is a trait which is negative and undesirable in this respect. Organizational deficiency applies to the cases under which an organization's present life and capability capabilities are poorer relative to other companies and rival organizations. In other words, organizational failure means the ways or practices in which, relative to its competitors, a company is less productive and successful. These factors adversely impact the efficiency of the company and degrade the organization among its competitors. Consequently, the corporation is reluctant to respond to a possible concern or opportunity and does not react to adjustments. It is just as necessary for the company to know its vulnerabilities as its strengths. The explanation is that no solution can be based upon vulnerabilities. It is important to know and strengthen the organizational vulnerabilities that have the potential to drive the company to inefficiency and ineffectiveness. It is compulsory to address the current issues that will create challenges and restrictions for long-term goals and policies, and to predict future problems.

• Opportunities: -

Opportunity implies an activity-suitable scenario or circumstance. Opportunity is an asset and the driving force to take part in an operation. It has a favorable and beneficial attribute for this cause. An incentive for organizational management is the convenient time or circumstance provided to the organization by the world to accomplish its objectives. Opportunities are ones that will give the company meaningful outcomes decided as a result of its environmental review. Competition and intense work present major opportunities for companies.

• Threats: -

A hazard is a circumstance or state that jeopardizes an activity's actualization. This applies to a disadvantageous event. It has a negative attribute that can be avoided for this purpose. A threat is the aspect that makes it difficult or impossible to meet the operational targets for organizational management. Threats are conditions that occur as a result of changes in the distant or imminent world that preclude the organization from sustaining its presence or weakening its economic dominance and are not advantageous to the organization. Threats are all external variables which can hinder organizational productivity and performance. Both benefits and challenges are included in the current world order created as a result of globalization. This method, which enhances both rewards and risks, directs corporate management to be vigilant and to respond more strategically on changes in and beyond their ecosystems. Economic, social, cultural, demographic, environmental, political, legal, regulatory, technical and competitive developments and activities that could greatly help or harm an entity in the future are external benefits and external challenges. Chances and risks are largely outside the reach of a single organization's power, thus the term external. Internal strengths and internal limitations are the controllable processes of a company that are carried out particularly effectively or poorly. They are emerging in the company’s administration, marketing, finance/accounting, production/operations, research and development, and information technology management practices. An important strategic management practice is to recognize and analyze organizational strengths and deficiencies in the functional areas of a company.