Swot Analysis : Strategic Management

1585 Words Aug 24th, 2014 7 Pages
Strategic Management is a set of upper level management decisions and actions that will determines the long term objectives and performance of a corporation. It accomplishes this task by including a variety of tools and analysis techniques, which will implement, evaluate and control the general direction of a company. This is done through strategy formulation which begins with a situational analysis that emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation´s strengths and weaknesses (Wheelen and Hunger, 2006; Saloner et al., 2001). The objective of this paper is to describe, analyze and discuss advantages and disadvantages of a concept named SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats. These are the concepts that are frequently used as tools for the analyzing of all external environments of an organization including their internal factors that constitutes its structure (Wheelen and Hunger, 2006). SWOT analysis came first came about from research that was conducted at the Stanford Research Institute in the late 1960´s. The idealization of SWOT analysis came from the necessity to discover why some corporate planning continued to failed. Many fortune 500 companies wanted to find out what could they do with the research discovered in Stanford. Albert Humphrey Along with a select few from his research team began testing SWOT as a tool and when it became practical SWOT became a corporate planning…
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