SWOT Analysis Is a Strategy Development Tool SWOT

  • Length: 4 pages
  • Sources: 7
  • Subject: Business - Management
  • Type: SWOT
  • Paper: #93764230

Excerpt from SWOT :

SWOT analysis is a strategy development tool used by a majority of organizations. Proper use of the tool will yield the position of an organization in terms of strengths, weakness, opportunity and threats. It is very essential that one consider honesty when analyzing the organization using this tool. The analysis should truthfully reflect the current situation of an organization. In addition, SWOT analysis is a base for developing strategy of the organization. In case of the sales company that has an ambition of expanding globally, a SWOT analysis will be the best tool for planning and developing strategic decisions. The analysis takes place on a place, industry, person or product (Pahl & Richter, 2009).

The target of this SWOT analysis is the identification of the market situation for this firm. The most important target is acquisition of new buildings and assets. The analysis of the organization starts by first identifying the objective of the business. The second step relates to identification of the external aspects that are favorable or hostile to an organization. The possibility of the internal environment matching the external environment on an organization is the strategic fit. For one to set the objective of an organization, it is necessary to first conduct a SWOT analysis. This analysis assist the organization reach its objectives and goals (Pahl & Richter, 2009). Strengths are the characteristics of an individual organization to have an edge over its competitors. Weaknesses are characteristics that disadvantage an organization in comparison to other organizations. Opportunities refer to resources or elements that an organization can exploit. Moreover, when one talks about Threats, a consideration is on elements in a business organization that can affect or bring trouble to the organization. The table below gives a SWOT analysis of the organization.


Good capital base

Good Strategic location


Poor management practices

High costs of transportation

High cost of production


Emerging middle class market

Technological advancement


Threats from new entrance

Competition from existing and emerging organizations

There are certain scenarios where a SWOT analysis is necessary. The analysis explore possibilities of an organization to make profits, make decisions about the future, assist in developing corrective actions to an activity and adjust development plans depending on the situation. The four elements of a SWOT analysis: strength, weakness, threats and opportunities address the positive and the negative aspects of an organization (Eden & Ackermann, 2013). Opportunities for an organization are new markets or the interest rates and threats may sum up funding, natural disasters or bankruptcy.

The strategy of this organization is future acquisition of assets. The acquisition strategy needs to start from identification of needs and the availability of funds. All team members need to contribute in terms of advice to the board. Strategy needs to be a top-down, and down-up approach but the backs stops at the top management. The Strategic management is a function of the top management team. The teams develop short-term, and long-term strategic goals and the C.E.O of an organization are responsible for any strategic action. The significant reason for any business organization is profit making, although this depends on the principles of an organization. Organizations have a moral obligation to the society they operates. Therefore, business and management relationship is close since, the management teams operate an organization (Shepherd, Mitchell & Sharfman, 2011. Philosophy of a business, economic theory and ethics influence organizations. However, one must distinguish between business philosophy and philosophy in business. Business philosophy intends to describe a way of doing business, and in this organization the philosophy is risk taking since the business has many competitors.

For a long period, philosophies on business have emerged. Modern and ancient philosophies consider factors of production, value of utility, importance of management and entrepreneurs in organizations. In the modern time, management theorists and economists provide information on these philosophies. These philosophies include the contract, stakeholder and theories on business and property (Shepherd, Mitchell & Sharfman, 2011). A typical organization has a short time and long-term strategic goals. Short-term goals are plans made on a short span of time an example of 2 years. For this organization, the goal is to increase on the number of sales by 2000 units in 2 months. Another goal is to increase on the expertise of workers. For the second strategic plan, the organization has to institute a recruitment drive In order to employ new workers to fill the expertise gap. On the other goal of increasing sales, the company purchases two new vehicles to transport products faster.

However, for the strategic plan to be accomplished leaders need training on handling workforce issues, and in strategy formulation. Leadership is vital in an organization since leaders give directions, plan and assist in decision making. As a new leader in this organization one need to develop plans together with other members of the organization. A leader should also promote interests of all stakeholders, the interest of the owner, customers and society is significant. Leaders need to be honest, trustworthy and be motivators. If a leader is oppressive in an organization, the likelihood of loss in production is high. As a leader in this organization, the best strategy to use will be to develop new marketing strategies that will make the organization reach all markets. The points to note are that SWOT analysis assist in strategic formulation. It is the expertise of the management and the quality of its leaders that are relevant for any organization (Selznick, McEwan, Yukl & VanFleet, 2010).


The state of unemployment is on the rise; the failing financial markets and companies' profits are on the decline. Globally recession has taken place in countries from time to time. A general description of the term recession is a decline in economic activities within an economy. Many researchers have taken studies on the causes of recession, but the most prominent cause of recessions is the sharp increase in the prices of input goods and services. For example, changes in the prices of oil might trigger recession thus changing fiscal and monetary policies of a Nation. The vicious aspect of recession makes people afraid to spend or buy non-essential goods and services (Stock, Keilis-Borok, Soloviev & Mikhalev, 2000). When non-essential goods and services stay in stores, companies will have to lay off workers. Therefore, the company needs to produce Essential goods to survive. Although essential goods do not have much return, the strategy is to remain alive until the recession ends.

During recessions, companies make a kill, selling consumer products and the others use technology to capitalize on recession. The best product to produce during a recession would be energy drinks. Consumers will obviously need a boost and energy drinks are the best remedy. Other products produced during a recession are food and personal products. One should invest on food commodities since they are continually on demand, in precious metals, timber and other agricultural products, real estate, securities and currency market (Stock, Keilis-Borok, Soloviev, & Mikhalev, 2000).

The new welfare reform has clearly transformed the welfare system of United States. In the country, the most prominent Act is the personal responsibility and work opportunity act. The Act's intention is to provide cash assistance to the poor. A component of the act was to encourage employment of the poor. These are some of the reasons to the development of this new Act; one of the reasons was the change in attitude against women roles and concerns about the poor depending on the state for assistance. Nevertheless, the Act ever since its inception faces many challenges. Three assistants at the department Health and Human services protested that the Act destroy safety spots for the poor. They argue that the law lowered incomes of mothers and movement of people to homeless shelters. Another critic says that the act encourage…

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