What Is a Swott Analysis?

1. What is a SWOTT analysis? What is its purpose in strategic planning? Do you have to conduct a SWOTTAnalysis to have an effective strategic plan? Why or why not?

Solution1:

The term SWOT stands for strength, weakness, opportunities and threats faced by an organization andSWOT analysis is a very important strategic tool used for evaluation of these four factors. It makes ways for understanding and identifying the specific objective of the business and identifies the various internal andexternal factors that are helpful in achieving those objectives. Its purpose in strategic planning is to help inachieving the targets that are set by the organization. There is no doubt that for an effective strategic plan,SWOT analysis is very crucial because the entire plan is being analyzed through the identification of theareas of development. It is a key through which an organization can understand how strengths can beleveraged, weaknesses can be improved, opportunities can be exploited and threats can be minimized.It is a process that matches the goals, capacities and programs of the organization with the socialenvironment (Foong, L.M., 2007).2.

What are the primary internal organization considerations for the development of a strategic plan? Whichconsideration is the most important? Why?

Solution 2:

Strategic planning is the process followed by an organization in which it defines its strategies and makesplans for proper allocation of its available resources to achieve its objectives. While developing a strategicplan, it is essential to consider the various internal organizational factors in order to help the plan succeed.The internal organizational factor comprises of mission, vision, values and guiding principles, strategy andstrategic objectives of the organization. Before creating any strategic plan, it is essential to know where weare standing and where we intend to go. We must have a look at the mission as well as the visionstatement of the organization, match it with the required demands and then frame the strategic plan. Themission statement depicts the purpose that an organization has and vision statement determines the futureby formulating a picture of the organization. Therefore, they are the most important internal considerationsfor the development of a strategic plan (Developing your Strategic Plan).3.

What are the primary external organization considerations for the development of a strategic plan? Whichconsideration is the most important? Why?

Solution 3:

For the development of a suitable strategic plan, external considerations are important because a plancovers the entire aspects of an organization i.e. its internal as well as external aspects. The externalaspects include customers, competition, technology, supplier market and labor market. All these factorsneed to be given due consideration as the external environment tends to have an alarming effect on thebusiness. A business can run smoothly only when plans are made in accordance with the different externalfactors. Among these factors, the most imperative factor is the customers as they are the ones who play avital role in shaping the business and taking it to greater heights. Therefore, it is the responsibility of everybusiness to understand the changing needs and preferences of the customers from time to time so thatthey can be provided with the satisfactory products and services (Hunger & Wheelan, 2004).

4. What are the key planning factors for competitive success? Provide an example of an organization thathas achieved competitive success through planning. Provide an example of an organization that has failedto achieve competitive success as the result of failed planning.

Solution 4:

Achievement of competitive success is the dream of any business. It solely depends upon several key

planning factors which play an effective part in the success of the business. These key planning factors areas follows:Advertising is an effective tool in attracting customers towards the business and increasing the share of profit. Therefore, strong advertisement is important.Providing goods at low prices gives competitive edge over its competitors.Good quality products are highly demanded by the customers. Therefore, meeting their needs through highquality products will add to the company's success.Continuous innovation in the organization by the development of new products and services helps theorganization to move ahead.The example of an organization that has achieved competitive success through planning is Wal-Mart. It iswell known that Wal-Mart has a large number of stores around the world and its products occupy a place of great significance. Its branches and stores could be easily found in each and every part of the world. This isthe result of an efficient planning system followed by Wal-Mart that has brought it so far successfully. Itsobjectives comprises of satisfying the customers with the world's finest products.The example of an organization that has failed to achieve competitive success through failed planning isMcDonald's. In its initial stage, when it started its operations in India, it faced a major setback. This wasmainly due to the failed planning strategies of the organization. It could not frame proper objectivesregarding its launch in a new country (Writing a Business Plan- Success Factors).5. What are the different types of strategies? What are the differences among these strategies? How do youdetermine which type of strategy is most appropriate for your organization?

Solution 5:

A strategy of an organization especially defines the various forms in which an organization will achieve itsmission and objectives. Strategy of an organization maximizes the competitive advantage and minimizesthe competitive disadvantage. There are different types of strategies, which are as described:

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Corporate Strategy: The overall direction of a company in terms of its general attitude towards growthand the management of its various businesses and product lines is depicted by the corporate strategy. Thisstrategy typically fits within the three main categories of stability, growth and retrenchment.

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Business Strategy: The strategy that occurs at the business unit or product level and that accentuatesimprovement of the competitive position of a corporation's products or services in the specific industry or market segment served by that business unit is termed as business strategy.

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Functional Strategy: The approach