Illustrate your answer with the help of examples. Analysis is a useful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face. What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares.
More than this, by looking at yourself and your competitors using the SWOT framework, you can start to craft a strategy that helps you distinguish yourself from your competitors, so that you can compete successfully in your market. SWOT is an acronym that stands for “strengths, weaknesses, opportunities and threats. ” SWOT is an analytical tool that allows you to identify internal factors, strengths and weaknesses of your company, along with external factors, opportunities and threats. Once you have identified the various components in a SWOT analysis, you can use each item to formulate a strategy to take action.
Instructions: •Identify the overall goal and purpose of the analysis. You’ll want to define this clearly before beginning the SWOT analysis. For example, one objective might be to determine how to expand your business to a wider market. •Write down a list of strengths that can be attributed to your existing organization for the objective you defined in Step 1. For example, if your company has run successful marketing campaigns in the past, this may be a strength. •Write down a list of weaknesses that can be attributed to your existing organization.
The Business plan on SWOT And PEST Analysis
... British Airways’ decision-making process. SWOT analysis The acronym SWOT highlights the importance of the strengths, weaknesses, opportunities and threats that are present ... of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and ... quantifies the size of the identified market and the profit potential. It pinpoints which ...
For example, your company may not have the manpower to complete the work that needs to be completed to expand the business. •Write down list opportunities that are external to your existing organization. These opportunities will have a positive impact on your objective. For example, if a competitor changes its focus and may no longer be a direct competitor. •Write down a list of threats that are external to your organization. For example, the economy being in a recession can be an external threat. Analyze and write down strategies to take advantage each strengths and opportunities and to minimize weaknesses and threats.
According to chandler, “strategy is the determination of the basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary to carry out these objectives”. The concept of strategy has been derived from military administration wherein it implies ‘Grand’ military plan designed to defeat the enemy. As applied to business, strategy is a firm’s planned course of action to fight competition and to increase its market share. The following are the main growth strategies available to firms: 1. Intensive growth strategy (Expansion) . Diversification 3. Modernization 4. External Growth Strategy intensive growth Strategy: Intensive growth strategy or expansion involves raising the market share, sales revenue and profit of the present product or services. The firm slowly increases its production and so it is called internal growth strategy. It is a good strategy for firms with a smaller share of the market. Three alternative strategies are available in this regard. These are: (a) Market Penetration – This strategy aims at increasing the sale of present product in the presented market through aggressive promotion.
The Term Paper on The Rationale Behind a Turnaround Strategy of a Firm
Many of them failed and had to be wound down, many are still in a phase of decline and their future remains to be seen – but some were able to come up with a new strategy and a new organisational structure and are leaving the crisis stronger than before. This might be traced back to their superior turnaround strategy. A constant adaptation and re-examination of current strategies is no longer only ...
The firm penetrates deeper into the market to capture a larger share of the market. For example, promoting the idea of cold coffee during the summer season, also the idea of instant coffee, instant tea and tea bags. (b) Market Development – It implies increasing sales by selling present products in the new markets. For example selling electronic goods in rural areas or sale of chocolates to middle aged and old persons. Market development leads to increase in sale of existing products in unexplained markets. (c) Product Development: In this, the firm tries to grow by developing improved products for the present market.
For example, A. C. with remote control, Refrigerator with automatic refreezing and flexible shelves. The firm which is concerned with production and is completely dependent on production for its profits and development should adopt the strategies like intensive growth so that they can improve their production which would indirectly result in increase in the profit. Modernization: A firm may use the strategy of modernization to achieve growth. Modernization basically involves up gradation of technology to increase production, to improve quality and to reduce wastages and cost of production.
The worn-out and obsolete machines and equipment are replaced by the modern machines and equipment. Modernization plans can have the following implications: i)A firm may go for modernization at a low pace to maintain its position in the market. Thus, it may be considered a stability strategy. ii)Modernization may be used with full strength to achieve internal growth. Thus, it is used as an internal growth strategy. This type of growth strategy is basically used in the firm who are widely connected with development and modernization.
