SWOT analysis is a strategy development tool used by a majority of organizations. Proper use of the tool will yield the position of an organization in terms of strengths, weakness, opportunity and threats. It is very essential that one consider honesty when analyzing the organization using this tool. The analysis should truthfully reflect the current situation of an organization. In addition, SWOT analysis is a base for developing strategy of the organization. In case of the sales company that has an ambition of expanding globally, a SWOT analysis will be the best tool for planning and developing strategic decisions. The analysis takes place on a place, industry, person or product (Pahl & Richter, 2009).
The target of this SWOT analysis is the identification of the market situation for this firm. The most important target is acquisition of new buildings and assets. The analysis of the organization starts by first identifying the objective of the business. The second step relates to identification of the external aspects that are favorable or hostile to an organization. The possibility of the internal environment matching the external environment on an organization is the strategic fit. For one to set the objective of an organization, it is necessary to first conduct a SWOT analysis. This analysis assist the organization reach its objectives and goals (Pahl & Richter, 2009). Strengths are the characteristics of an individual organization to have an edge over its competitors. Weaknesses are characteristics that disadvantage an organization in comparison to other organizations. Opportunities refer to resources or elements that an organization can exploit. Moreover, when one talks about Threats, a consideration is on elements in a business organization that can affect or bring trouble to the organization. The table below gives a SWOT analysis of the organization.
Strength
Good capital base
Good Strategic location
Weakness
Poor management practices
High costs of transportation
High cost of production
Opportunities
Emerging middle class market
Technological advancement
Threats
Threats from new entrance
Competition from existing and emerging organizations
There are certain scenarios where a SWOT analysis is necessary. The analysis explore possibilities of an organization to make profits, make decisions about the future, assist in developing corrective actions to an activity and adjust development plans depending on the situation. The four elements of a SWOT analysis: strength, weakness, threats and opportunities address the positive and the negative aspects of an organization (Eden & Ackermann, 2013). Opportunities for an organization are new markets or the interest rates and threats may sum up funding, natural disasters or bankruptcy.
The strategy of this organization is future acquisition of assets. The acquisition strategy needs to start from identification of needs and the availability of funds. All team members need to contribute in terms of advice to the board. Strategy needs to be a top-down, and down-up approach but the backs stops at the top management. The Strategic management is a function of the top management team. The teams develop short-term, and long-term strategic goals and the C.E.O of an organization are responsible for any strategic action. The significant reason for any business organization is profit making, although this depends on the principles of an organization. Organizations have a moral obligation to the society they operates. Therefore, business and management relationship is close since, the management teams operate an organization (Shepherd, Mitchell & Sharfman, 2011. Philosophy of a business, economic theory and ethics influence organizations. However, one must distinguish between business philosophy and philosophy in business. Business philosophy intends to describe a way of doing business, and in this organization the philosophy is risk taking since the business has many competitors.
For a long period, philosophies on business have emerged. Modern and ancient philosophies consider factors of production, value of utility, importance of management and entrepreneurs in organizations. In the modern...
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