Swot Analysis : Swot And Pest Analysis

SWOT stands for STRENGTH, WEAKNESS, OPPORTUNITIES, THREATS. It is a means of assessing any business or company because it covers these four critical aspects which could lead somebody to decide whether a business is a successful one. SWOT can be used by the manager in order to evaluate the current situation and take any decision to improve the business, it also can be used by potential investors in order to see if the business is thriving.

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

When examining the potential for a new business or product, a SWOT analysis can help determine the likely risks and rewards. A SWOT analysis is an organized list of a business’s greatest strengths, weaknesses, opportunities, and threats. Strengths, which are the appearances of the business that give it an advantage over others, and weaknesses, which are features that place the team at a disadvantage, are internal to the company and can be changed over time but not without some work. Opportunities, which are basics that the business could use to enhance its strengths, and threats, which are elements in the environment that could cause concern for the business, are external and they are out there in the market,

SWOT analysis can be used to describe and analyse a company’s internal capabilities in relation to its competitive environment. A strategy behind

SWOT and Pestle analysis is a strategic analysis tool that feeds important information into the business strategy formulation process. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. SWOT is used to determine the current position of an organization. The first two components pertain to internal factors and the latter two concern external issues. Pestle (or PEST) is an acronym for Political, Economic, Social, Technical, Legal and Environmental analysis. Pestle is a tool for assessing the external context of an organization (Bee, 1998).

In order to assess the company and possible future strategies it is necessary to conduct a SWOT analysis and PESTEL analysis.

SWOT stands 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 a method for analyzing a business, its resources and its environment. SWOT is commonly used as part of strategic planning and looks at Internal strengths, Internal weaknesses, Opportunities in the external environment, Threats in the external environment” (Tutor2u.net, 2015). PEST analysis studies 4 dimensions, same as SWOT. The factors measured in PEST are

It is a widely used technique where managers create a quick overview of a company’s strategic situation. The basic premise behind SWOT analysis is that an effective strategy derives from a sound “fit” between a firm’s internal strengths and weaknesses and its external situation. The idea is to leverage the company’s strengths in light of the opportunities and minimize its weaknesses and threats. SWOT analysis is an integral part of the strategic management process because strategy is derived after a sound analysis of the firm’s

SWOT is an acronym that simply stands the strength, the weaknesses, the opportunities available and the threats that the company faces. Every business organization or entity always has its points of strength, its weaknesses in terms of how it conducts its businesses. Furthermore, there are always opportunities that are available to any company in addition to those factors or issues that the company faces which are threats to the success of the business. From the case of Harley Davidson, there are various strengths, weaknesses, opportunities and threats that the company faced throughout its operations.

The focus of the SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories; internal factors and external factors. The internal factors are the strengths and weaknesses that are internal to the company while the external factors are the opportunities and threats that presented by the external environment. The internal factors are determined by their impact on the company’s objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The external factors may include technological change, legislation, cultural changes, and changes in the marketplace or competitive position (Wood, 2008).

Today’s businesses end up working in a situation that is changing quicker than before. The process of analysing the issues and changing the techniques within the business is known as SWOT analysis.

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.

SWOT stands for strengths, weaknesses, opportunities, and threats (Ferrell and Hartline, 2014, p. 39). A SWOT analysis evaluates both the internal factors (strengths and weaknesses) and external factors (opportunities and threats) that create advantages and disadvantages to a company when serving its customers (p. 39). A SWOT analysis is extremely beneficial in helping a company determine areas of improvement (p. 39). Internal factors examine the actual company being analyzed while external factors examine the external market (customers and competition) (p. 85).

The first important part of a SWOT analysis is to improve the viability of an organization. SWOT identifies the risk which can arise from future threats coupled with the organization weakness. For example, a pharma company ABC has invested heavily in R& D of existing product where a new competitor is also entering with same product. Then company ABC has to decide whether it is strategically important to deal with external threat or improve the internal weakness. Company ABC can continue the R & D progress to improve the quality of existing product or else can diversify the resource to offer the product at less cost i.e. improving its efficiency. So, SWOT plays an important role in such situation and proves to be a beneficial tool to take appropriate decision of improving the weakness