Environmental Analysis A SWOT analysis is an evaluation of the business environment and organizational strategic capability to identify key issues that may impact strategy development (Ireland, R., Hoskisson & Hitt, 2008). Strengths and weaknesses define a firm’s internal environment whereas opportunities and threats constitute the external environment.
Internal Environment
Strengths
Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division. The company employs and trains skilled sales personnel to promote its items. Besides, direct sales branches are strategically located in high traffic zones to attract more potential buyers and strengthen revenues. The company manages its supply chain effectively. It produces annual publications of supplier codes of conduct, a move that increases brand recognition. The company enjoys implausible trade name trustworthiness, implying that many people will
According to Nicole Fallon of the Business News Daily, a SWOT analysis is an analytical framework that can help any company face its greatest challenges and find its most promising new markets, by identifying the organization’s strengths, weaknesses, opportunities and threats (2017). It allows for an extensive evaluation of the company’s internal and external resources as well as current and future threats that the company may face. This process can be a great asset in determining and exploring new initiatives, as it helps to identify areas of improvement within the organization while helping with the facilitation and implementation of new business policies. This process is crucial in refreshing the strategies and tactics of any
SWOT Analysis is a strategic method used to evaluate the Strengths and Weakness of a company and its products, and the external factors over which the company has no control such as Opportunities and Threats.
A SWOT analysis is a tool used to identify the strengths, weaknesses, opportunities and threats of an organization. A SWOT model measures what an organization can or cannot do as well as the possible opportunities and threats. This is done by taking data from the organization’s environment, analyzing the information and separating it into the internal (strengths and weaknesses) and external (opportunities and threats). When this is completed the analysis can create a plan for the organization to achieve its goals, and identify what difficulties must be overcome to attain
SWOT analysis provides a structure for analyzing either your own strengths and weaknesses, and the opportunities and threats you face, or in a work context for analyzing the strengths, weaknesses, opportunities and threats a business or event faces. Ideally it is one step in a process which helps you to
As defined in Thompson et al 2005 p.106, SWOT analysis is a tool for sizing up company’s resource capabilities and deficiencies, its market opportunities and the external threat of its future well-being.
“SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be external factors over which you have essentially no control. SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose to
Is a scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). SWOT analysis means analyzing strengths,
SWOT refers to the analysis of a company / industry / entity with respect to their strength, weakness, opportunities and threats. Here, strengths and weaknesses are internal to company and opportunities and threats are external to company. As a part of analysis, strengths and weaknesses of a company are identified and it is used to identify and match with opportunities in the business environment. Further, existing and upcoming threats are also identified that can harm the company.
The SWOT analysis is a tool that is used to identify and understand the internal strengths and weaknesses in an organization and the external threats and opportunities in the market environment the organisation is operating in. Ferrell & Hartline (2011), state that it helps an organization chart a niche that is sustainable in a particular market. It helps the organisation identify a growth pattern or path that would best exemplify its good values and opportunities for the benefit of the shareholders.
SWOT analysis is a tool that is used to understand the position of an organisation in relation to its operating environment. According to Griffin (2011), SWOT analysis is particularly useful in strategy formulation, which essentially entails how the company allocates its resources in all its operations to achieve its objectives. SWOT analysis assesses strengths and opportunities that an organisation has and how it strategizes itself to overcome its weaknesses and threats in its operating environment. Thus, the strengths and weaknesses of an organisation are internally focussed while threats and opportunities are external forces to an organisation. Regoff and Bezos (2007) noted that SWOT analysis is useful in understanding the competitive position of an organisation in the market.
‘SWOT analysis is a means of analysing the environment of an organisation by assessing the internal strengths and weaknesses and external opportunities and threats’1
SWOT analysis covers the strengths, weaknesses, opportunities & threats which a company is facing in its internal & external environment. Strengths & weaknesses fall under the internal environment of the company and opportunities & threats fall under the
SWOT analysis is a useful tool for understanding and decision-making for all sorts of situations in business and organization. SWOT analysis can be classified into internal and external factors affecting a company. The Strengths and Weaknesses of the SWOT analysis represent the internal factors that influence the viability of the company. While the Opportunities and Threats, on the other hand, are the external factors that may affect the company's performances. A SWOT analysis provides more understanding of the organization in relation to its internal and external environment so that manager can formulate better strategy in pursuit of its mission.
According to Wikipedia, Apple Incorporated formerly known as Apple Computer is very reputable in the United States and around the world, is a multinational corporation with its headquarters located in Cupertino, California. Besides the Americas segment which includes both North and South America, It also operates through the following geographical segments: Americas, Europe, Greater China, Japan, and Rest of Asia Pacific. The company was founded by Steve Jobs and Steve Wonzniak on April 1, 1976 and incorporated it on January 3, 1977. The company is one that focusses on the development, designing and the distribution of its on line services, computer software and electronics. The company also have a chain of retail Apple stores, and their core product lines are the iPhone smart phone, iPad tablet computer and iPod portable media players. Both men wanted to change the way people viewed computers, so they decided to make computers small where consumers can use them in their homes and offices.
The SWOT analysis evaluates the strengths, weaknesses, opportunities and threats of a company. It assesses the company’s market, the company itself, the company’s competition and the company’s threats. (Olsen, E, 2010)