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