CHAPTER 2; SWOT Analysis

Advantages when top managers use SWOT Analysis

-Able to set better goals for capitalizing on strengths and opportunities, or minimizing weaknesses and threats

Threats

-External barriers that may prevent a company from reaching goals -Negative

Opportunities

-External factors that the company may be able to exploit to its advantage -Positive

What is SWOT used for, and what is the value

-Identifying and evaluating strengths, weaknesses, opportunities and threats -Helps to think of a categorize factors that hep or hinder - the value is the convert weaknesses into strengths, to gain more opportunities and be less vulnerable to threats

Strengths

-Internal capabilities that may help a company reach its objectives and give advantage over competitors -Positive

Weaknesses

-Internal limitations that may interfere with a company's ability to achieve its objectives -Negative

What is SWOT apart of

The strategic planning process for top management

Assessing Strategic Factors Using SWOT; Methods For Completing SWOT Analysis

1. Selecting an element (i.e.; strength), brainstorm about the element until all strategic factors are found, then repeat for the rest 2. Brainstorm all strategic factors that will affect the business, categorize them into the elements