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Indeed, each entity SWOT analysis should be done effectively to determine strengthens, weaknesses, opportunities, and threats. Studying concurrent underpinning four factors that related to the precedent period for the same entity (better from 2-3 years back) could emanate practical results that would drive the strategic vision of this organization for five years future P/L plan. Marketing unit should guarantee best utilizing those factor throughout looking for deep interpreting the threats firstly to pave the road for using the other factors, inter and intra-organizational preferences should be carefully analyzed throughout the workplace and workforce settings, aligned with Market direct and indirect competitions. Marketing plans should evolve gradually and customized for each consumer/product preferences. P/L ratio would be maintained over whole entity levels/procedures/divisions. However, some risk should be calculated and retained especially when factual opportunities come to the horizon at any point in time. Supply chain unit & Production lines should be in congruence with market demands and whole organization goals and interests. Eventually, the answer to such question could need more than this space and could also entail a vast contingency regarding the settings and preferences of the organization's context.
SWOT is a great tool when it comes to looking inside and outside the company. However I have a great example of an organization that is using Porter's value chain to analyze its activities and how they compare to the competitors (Cevital in Algeria, a group of industrial companies with value chain linkages to optimize production and cost reduction). I find the value chain analysis to be a more operational tool which leads to surprising findings. In itself a SWOT doesn't go deeply into looking at key activities that if done properly will deliver a sustainable advantage. Porter's analysis matrix does that. All in all I guess a mix of both tools could assist any manager to achieve an organization's objectives.
Swot analysis analitically enables you to survey the market, by checking how the product is perfoming in the market. Also zeroing on the weaknesses against the competitors in the market. weighing your oportunities againist the market threats.
SWOT is a widely used technique for scanning of business environment.
SWOT analysis is a dynamic tool to understand the inherent competencies and challenges you face in today's dynamic business environment. Internal factors (Strengths and Weaknesses) can be controlled and external factors (Opportunities and Threats) cannot be controlled by us. It is crucial for any organization to enhance it's strengths and overcome the weaknesses in order to capitalize on the opportunities and defend from threats before significant damage is done.
1.when the organisation can not manage its internal factors very well strenght and weakness.
2 when the organisation can not manage its external factors like opportunitiesand threat.
success of any organization depend on the ability to knock down weakness and threat within the organization.
SWOT analysis helps in taking an educated decision on any matter or issue facing the Organization. The more detailed and clear this analysis, the easier it is to evaluate a business position and to strategize on the way forward.
Specifically, for Marketing it throws up the challenges facing the Company and where it should focus on for better results. Similarly, on Supplies, the analysis will reveal exactly where the Company needs to focus for Cost Reduction and improve its Order-to-Delivery. Where Production is concerned, SWOT analysis gives a clear picture on the bottlenecks and helps further in designing a cause-effect chart that will pave the way to implement actions for addressing shop floor issues.
