Question & Answer: Write 3-4 paragraghs, how a good Swot analysis can help a company, for example (WindowWears)……

SWOT analysis is a systematic approach to understand the total environment. SWot analysis is elaborated as Strength, weakness, opportunities , threats . Business firms take SWOT analysis to understand the internal as well as external environment. It helps to understand the organization’s existing weaknesses and strength and accordingly organization analyses the opportunities and threats in the environment so that effective strategy can be formulated.

The components of SWOT analysis are-

• Strength- It is an internal capability of company, which organization can use to gain strategic advantage over others.
• Weakness- It is an inherent limitation of organization, which provide strategies disadvantage to organization
• Opportunities- If is a favorable situation for organization, which organization can avail to strength its position in market place.
• Threats- It is an unfavorable situation which can provide some risks or damage of organization’s position.

SWOT analysis enables the firm in identification of various strategic alternatives, by analyzing its internal strength and weakness by considering external opportunities and threats.

It helps the manager to craft the business model that helps to gain a competitive advantage in the industry, which also helps to increase profitability and achieve growth in fast changing global business environment.

It provide the logical framework for systematic and clear understanding of all the issues which may have implications for organization in short and long term.

It provide information in a structured form about both external and internal environment, where one can compare external opportunities and threats with internal strengths and weaknesses. It helps in developing pattern in of relationship by matching opportunities, threats ,strength and weakness.