Question

Question 13 4 pts What are the elements of a SWOT analysis when developing a strategic plan? I am asking you to identify each of the elements of the acronym and define each. HTML Editore BIVA-A-I EX X, T 12pt Paragraph O words

Answer 1

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework which is used to evaluate the competitve position of a company and to develop strategic planning. SWOT analysis assesses external and internal factors revolving around a company, as well as current and future potential.

A SWOT analysis is designed to facilitate a fact-based, realistic, data-driven look at the weaknesses and strengths of an organization, its initiatives, or an industry. The company needs the analysis to be accurate by avoiding pre-conceived beliefs or gray areas and infact, focusing on contexts of life area. Companies must use SWOT analysis as a guide and not necessarily as a prescription.

• Strengths describe what a company excels at and what separates the organization from the competition: a loyal customer base, a strong brand, a strong balance sheet, unique technology, and so on. For example, a hedge fund may develop a proprietary trading strategy that returns great market-beating results. The company must then decide how to use these results to attract new investors.

• Weaknesses restrict a company from performing at its optimum level. These are the areas where the organizations need to improve to remain competitive: higher-than-average turnover, high debt levels, an inadequate supply chain, a weak brand or lack of capital.

• Opportunities refer to favorable external factors that could provide the company a competitive advantage. For example, if a country cuts quotas and tariffs, a car manufacturer can export its cars into a new International markets, increasing sales and market share.

• Threats are factors that have the potential to harm an organization's business. For example, a drought is a threat to agricultural companies, as it may destroy the crops or reduce the crop yield. Other common threats include things like high competition, rising costs for materials, tight labor supply and so on.