THE ROLE OF S.W.O.T

The Role Of S.W.O.T



The Role Of S.W.O.T

Introduction

Strategic planning is an organization's process of defining its plan, or track, and making decisions on allocating its capital to follow this plan, including its assets and people. Various business study techniques could be used in strategic planning, including S.W.O.T study (Strengths, Weaknesses, Opportunity, and Threats), PEST study, STEER study, and EPISTEL.

Organizational plan is actually the means through which the organization completed its mission and goals. The four successful strategies to solve the set the organization: (1) the organization's strengths, (2) its weaknesses, (3) opportunity in their competitive environment, (4) In the competitive threats to an surroundings. These four elements, strengths, weaknesses, opportunity and pressure, when a organization uses to gain the viable benefit, often referred to as S.W.O.T study to be. S.W.O.T study is in the early 70s. Study: evaluation of strengths and weaknesses of a occurrence is due to a part of organization's study, that is, it is a organization's internal operations, it is relatively easy to control than external factors review. Instead, look for opportunity and intimidation of environmental study, the part of a organization must look to determine the opportunity and threats outside the organization, more than it has less control (Ansoff, 1957, 113-124). According TO Andrews S.W.O.T model there are four basic questions: (1) what can we do? (2) What do we want to do? (3) What could be done? And (4) what people expect us to do? The answer to these questions provides an effective strategic management process of a input. Although Andrews's original concept of this study have been evolving and changing more flowing S.W.O.T study, as today we are aware that his work was the basis for this movement (Lasker, 1959, 2).

Strategic planning in business, some of a phrases as the third question "How can we beat or avoid competition?" In various organization, it was seen as a process when the organization decided in the next year or after 3 to 5 years.

In order to determine where to go, the company requires to know its position exactly, and then determine where it wants to go and how to get there. The resulting file is called "strategic plan" (Kotter, 1982, 9).

Advantages

The advantage of a organization's resources could be used as the basis for developing capabilities have a competitive advantage (Isenberg, 1986, 9-786). These include:     * Patent     * Strong brand name     * A good reputation among customers     * Cost advantages from proprietary know-how     * Exclusive access to high grade natural resources     * Good distribution network access Weakness

In some cases advantages could be seen as the flaw (Isenberg, 1984, p. 56). For example, each of a following might be considered weaknesses:     * the lack of patent protection     * Weak brand     * Poor reputation among customers     * High cost structure     * cannot get the best natural resources     * Lack of access to key distribution channels

In some cases, a weakness might be an advantage for the other ...