Factors that

Factors that can

give an edge for

be harmful if

the company

used against

over its

the firm by its

competitors.

competitors.

Favorable
situations which
can bring a
competitive
advantage
http://www.iplanner.net/business-financial/online/how-to-articles.aspx?
article_id=swot-analysis

Unfavorable
situations which
can negatively
affect the
business

4. What is a SWOT analysis and how does it relate to the Strategic Management
Process

SWOT is an acronym for the words strength, weaknesses, opportunities and threats
as shown in the image above. It is a framework that involves collection and
portrayal of information about internal and external factors which have, or may
have, and impact on the business.
This framework is essential which will help the managers to synthesize insights
obtained from an internal analysis of the companys strengths and weaknesses with
those from an analysis from an analysis of external opportunities and threats.

Strategic management can be defined as a set of decisions and actions taken by

management, in collaboration with all levels within the organization in order to
establish long term activities of the organization. There are varieties of approaches
and technique can be used on strategic management process and SWOT analysis is
one of the most widespread methods of management.
SWOT analysis is widely used by manager on creating strategies. Commonly used
as a tools for the analysis of internal and external factors in order to achieve a
systematic approach and spport address situation. Internal and external factors are
the most important for the future of business. They are called strategic factors and
are presented in the SWOT matrix. The ultimate goal of the strategic planning

process, of which SWOT is one of the initial phases, is development and adoption of
strategy resulting in a good relationship between internal and external factor.
SWOT analysis is actually a method to help with strategy formulation. This analysis
aims to identify the strengths and weaknesses of the organization and the
opportunities and threats in the organization.
SWOT analysis is an important tools that serves as a support for decision making
and is often used as a tools for systematic analysis of the organization, both internal
and external influences on the organization.
The result of SWOT analysis is useful and can be help to determine a strategy that
will mean long-term progress.
http://www.academia.edu/3019214/Strategy_development_by_using_SWOT_-_AHP