Swot Analysis : The Swot

1215 WordsDec 18, 20145 Pages
The SWOT analysis was originally introduced by Andrews Christiansen, Guth and Learned in 1969 and its basic organizing principles have remained largely unchanged in the field of strategic management. [BADEN-FULLER, C. H. A. R. L. E. S., & STOPFORD, J. (2002). The Firm Matters More than the Industry. Strategy for Business: A Reader, 123.] It is a systematic framework which helps managers to develop their business strategies by appraising their internal and external determinants of their organization’s performance. Internal environmental factors include leadership talent, human resource capabilities, the company’s culture as well as the effectiveness of its policies and procedures. External factors include competition, government legislation, changing trends and social expectations. The SWOT analysis framework involves analyzing the strengths (S) and weaknesses (W) of the business’s internal factors and the opportunities (O) and threats (T) of its external factors of performance. Through this analysis, strengths and weaknesses within an organization can be matched with the opportunities and threats operating in the environment so that an effective strategy can be formulated. Therefore an organization can derive an effective strategy by taking advantage of its opportunities by using its strengths and neutralize its threats by minimizing the impact of its weaknesses. Moreover, SWOT analysis can be applied to both a whole company as well as a specific project in order to

More about Swot Analysis : The Swot

Open Document