Swot Analysis: The SWOT Analysis Of A Business

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SWOT analysis is a study made by companies to be able to identify their internal strengths and weaknesses, and also to know their external opportunities and threats. Every business should conduct such an analysis in order to set their strategic plans and goals. According to Wright (1998), “The SWOT (Strengths, Weaknesses, Opportunities, Threats) framework is proposed by many as an analytical tool which should be used to categorize significant environmental factors both internal and external to the organization”. When evaluating the strength of a business, the manager should be able to identify its competitive advantage in the market and take advantage of such strengths. Competitive advantages are ways of doing the business that others cannot…show more content…
One of the most important external threats is the political and legal threat. Political and legal threats could be local or international. A business can be affected by any political or legal changes in any country that it has a relation with. As a result, businesses should acquire political skills and be able to analyses and predict changes and respond accordingly. Political skills empower businesses and may improve their performance and provide them with an advantage in the market. “Companies are beginning to recognize the impact of political issues upon international ventures”. Weiner (1992). According to Weiner (1992), political problems may be the result of wars, corruption, bad elections, religious violence, government agencies, or revolutions. However, the most important external factor that might negatively affect a company is the political instability. McConnell, Brue & Flynn identify a stable political system as, “stable political system characterized by democratic principles, internal order, the right of property ownership, the legal status of enterprise and the enforcement of contracts.” (P.616). Political instability that might affect a business could be local or boarder
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