Solved: 1.Discuss the advantages and limitations the SWOT Matrix and analysis. (Chapter 6)

1.

There are many advantages of SWOT matrix and analysis. The first advantage is the understanding of the strengths and weaknesses of the company. Once it is known fact, then company can work on it and converts strengths into competitive advantages. Further, weaknesses can be eliminated in due course of time to never let the competitors to get benefits out of it. The second advantage is the identification of the scope of opportunities. The organization always tries to identify the new scope of business development. It is helped by the SWOT analysis.   The third advantage is that the organization readies themselves from the upcoming threats and make strategies to nullify the impact of the threats. The fourth advantage is the strategic approach adopted by the company in its initiatives. It brings aligning of the strategy with the vision, mission and goals of the organization. The fifth advantage is the adaptability and readiness in the organization to the changing business environment.
Though, there are some limitations also. It exclusively works on an organizational level, but, it does not give idea about the other specific organizations as competitors. Opportunities and threats are at industrial level, but micro environmental factors are not covered in detail. Further, Economic aspects of the geographical area don’t get much attention in SWOT analysis. It is achieved in PESTLE analysis.

2.

Four trends are as follows:
1.   The formation of free trade zones between the countries either on a bilateral basis or on among the many countries
2.   Creation of joint ventures between the firms and focus on complementing each other in terms of labor, capital, and technology
3.   Facilitation of FDIs in one country by another country across the globe
4.   Sharing of technology know-hows amid economic cooperation on organizational and or industry level