Swot Analysis Is Use For Strategic Planning Marketing Essay

Swot Analysis Is Use For Strategic Planning Marketing Essay Introduction In a business world the strategic planning is necessary for running organisation successfully and meet their objective as well. The strategic planning is done in numerous way, all are beneficial for the business. For this such an analysis is need to done in organisation such as, SWOT analysis, PEST analysis, etc. Such an analysis is done within the organisation and some of the analysis is done in outside of the organisation. As in SWOT analysis the strengths and weakness is the analysis which made inside in organisation and opportunities and threats are the analysis of outside the organisation. In this report major part is shown on SWOT analysis. The company is taken as example is General Electric. This report shows the SWOT analysis performance on General Electric. The advantages and limitation of General Electric during SWOT analysis is also shown in this report. SWOT Analysis In the business and organisation for all sorts of situations the SWOT analysis is the useful tool as an unusually for caring and administrative. SWOT is a short form for Strengths, Weaknesses, Opportunities, and Threats. A good framework is provided by the headings of SWOT analysis for re-evaluate direction, position and strategy of a business or industry plan, or any other idea. It is so simple to complete a SWOT analysis, and for the workshop sitting it is an excellent subject. This SWOT analysis is also works well in brainstorming convention. SWOT analysis is use for strategic planning, marketing, competitor evaluation, business planning, product development and research and business reports. The SWOT analysis is also use as games of team building exercises. A SWOT analysis measures a business unit, a proposition or idea. A SWOT analysis is a subjective assessment of data which are organized by the SWOT format into a logical order that helps understanding, presentation, discussion and decision-making. The four dimensions are useful extension of a basic two heading list of pros and cons. SWOT analysis can be used for all sorts of decision-making, and the SWOT template enables proactive thinking, rather than relying on habitual or instinctive reactions. The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The free SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT grid. The questions are examples, or discussion points, and obviously can be altered depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking points for other headings use them as you find most helpful, and make up your own to suit the issue being analysed. It is important to identify clearly the subject of a SWOT analysis, because a SWOT analysis is a perspective of one thing, be it a company, a product, a proposition, and idea, a method, or option, etc. SWOT issues into actions under the six categories Albert Humphrey advocated that the six categories: Product (what are we selling?) Process (how are we selling it?) Customer (to whom are we selling it?) Distribution (how does it reach them?) Finance (what are the prices, costs and investments?) Administration (and how do we manage all this?) Provide a framework by which SWOT issues can be developed into actions and managed using teams. This can be something of a leap, and so the stage warrants further explanation. Translating the SWOT issues into actions, are best sorted into (or if necessary broken down into) the six categories, because in the context of the way that business and organisations work, this makes them more quantifiable and measurable, responsible teams more accountable, and therefore the activities more manageable. The other pivotal part in the process is of course achieving the commitment from the team(s) involved, which is partly explained in the item summarising Humphreys TAM ® model and process. As far as identifying actions from SWOT issues is concerned, it all very much depends on your reasons and aims for using SWOT, and also your authority/ability to manage others, whom by implication of SWOTs breadth and depth, is likely to be involved in the agreement and delivery of actions. Depending on pretext and situation, a SWOT analysis can produce issues which very readily translate into (one of the six) category actions, or a SWOT analysis can produce issues which overlay a number of categories or a mixture. Whatever, SWOT essentially tells you what is good and bad about a business or a particular proposition. If its a business, and the aim is to improve it, then work on translating: Strength (maintains, build and leverage), Opportunities (Prioritise and optimise), Weakness (remedy or exit), Threats (counter) Into actions (each within one of the six categories) that can be agreed and owned by a team or number of teams. If the SWOT analysis is being used to assess a proposition, then it could be that the analysis shows that the proposition is too weak (especially if compared with other SWOTs for alternative propositions) to warrant further investment, in which case further action planning, other than exit, is not required. This is my understanding of Albert Humphreys theory relating to developing SWOT issues into organisational change actions and accountabilities. (Im pleased to say that Albert kindly confirmed that this is indeed correct.) There are other ways of applying SWOT of course, depending on your circumstances and aims, for instance if concentrating on a department rather than a whole business, then it could make sense to revise the six categories to reflect the functional parts of the department, or whatever will enable the issues to be translatable into manageable, accountable and owned aims. Simple framework of SWOT analysis is a generating strategic alternative from a situation analysis. This analysis is either applicable to the business unit level or corporate level and in marketing plans it appears frequently. The Council of General Electric Growth used this analysis form because it concentrate on the issue that potentially have the most collision, when there is a limited time amount is available for addressing a complex strategic situation the SWOT analysis is useful. The diagram of SWOT analysis and how it fits into situation of strategic analysis is shown below. Situation Analysis   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     / Internal Analysis  Ã‚  Ã‚   /   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Strengths  Ã‚  Ã‚  Weaknesses  Ã‚  Ã‚   The large amount of information can produced by the internal and external situation analysis, among them may not be highly relevant. To reduce the information to a convenient amount of key issue the analysis of SWOT can serve as an interpretative filter. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats. General Electric (GE) is a manufacturing company functioning in a range of section. For use in wind turbines, aircraft, water systems, natural gas and oil compressors and more, its infrastructure section produces jet engines and related parts. To end users it is various financial services is offered by the Commercial Finance segment. Financial services to the retailers and consumers are provided by the GE Money section. Equipment which use in medical field is manufactured by the Healthcare section and the television network services is provided by its NBC Universal section. The Industrial section offers lamps, commercial lighting systems, home appliances, motor and control systems and many others. Internal Analysis For internal analysis we can say that it is a complete assessment of the internal environments prospective weaknesses and strengths. Across the organisation it should be appraising such factors in areas such as: Company image Organisational structure Key staff Brand awareness Access to natural resources Company culture Operational capacity Exclusive contracts Operational efficiency Financial resources Position on the experience curve Patents and trade secrets Market share As a list of weakness and strengths it is review the inner factors by the SWOT analysis. External Analysis To make better profits it is the ability to set up service or a new product which this is known as an opportunity. When changes happen in the external environment then opportunities can occur. These numerous changes can be apparent as threats to the market position of running goods and may require a change in creation provision or the expansion of new goods in order for the firm to stay competitive. The external environment changes may be associated to: Competitors Customers Suppliers Market trends Partners As a list of threats and opportunities the external factors of environmental is analysed and summarized by SWOT analysis. Strengths The positive essentials of an organisation or business are their strengths, it is in under their control and they do something well. The strengths are valued to the business or a group, and it can give the edge over the competitors in some areas. The main strengths of GE is outline below. à ¢Ã¢â€š ¬Ã‚ ¢ The major plus point of General Electric is having alliances with other strong and popular businesses. It helps GE to get in new customers and make company further successful. à ¢Ã¢â€š ¬Ã‚ ¢ The key to their success for General Electric is to being as a market leader, is as it improve status, market share and earnings. à ¢Ã¢â€š ¬Ã‚ ¢ General Electric provide and offered original and good products and services, to obtain them General Electrical make most people return to them. à ¢Ã¢â€š ¬Ã‚ ¢ The main key of General Electric is their most experienced employees which help GE to drive them forward with capability and knowledge. à ¢Ã¢â€š ¬Ã‚ ¢ The other strength of General Electric is its high class machinery, well known staff, good infrastructure offices and equipment. It ensures the job is done to the greatest standard. à ¢Ã¢â€š ¬Ã‚ ¢ Regarding profit and sales the General Electric major strength is its wide customer base. à ¢Ã¢â€š ¬Ã‚ ¢ The reputation of General Electric is powerfully popular, which means people believe in it and it is viewed with the respect. à ¢Ã¢â€š ¬Ã‚ ¢ General Electric being strong as financial, this helps them to deal and solve any problems which arise. à ¢Ã¢â€š ¬Ã‚ ¢ General Electrics essential strength is its strong brand as it is appreciated and accepted. à ¢Ã¢â€š ¬Ã‚ ¢ General Electric has the market share with high percentage, which means GE is to the lead of numerous competitors. à ¢Ã¢â€š ¬Ã‚ ¢ To ensure that the customers be returns, General Electric have high quality services and/or products as a fundamental strength. à ¢Ã¢â€š ¬Ã‚ ¢ International operations of GE signify customers base wider, a stronger brand and a greater large piece of the international market. à ¢Ã¢â€š ¬Ã‚ ¢ General Electrics innovation and development are high with observe to their services and/or products. It is the strength of its overall performance. à ¢Ã¢â€š ¬Ã‚ ¢ General Electric has a high and strong market position. This is the major strength in this type of industrial area as they are in front of numerous rivals. à ¢Ã¢â€š ¬Ã‚ ¢ GE is in front of numerous competitors as their online presence is strong. à ¢Ã¢â€š ¬Ã‚ ¢ GEs Research and development department is strong. à ¢Ã¢â€š ¬Ã‚ ¢ Number of business acquired by GE. à ¢Ã¢â€š ¬Ã‚ ¢ GEs profits and revenues are high. à ¢Ã¢â€š ¬Ã‚ ¢ Its culture and organisational structure is strong. Weaknesses Under their control as organisation or business, their weaknesses are the things which need to be performed better or to be improved. Weaknesses makes the company in behind with the competitors or may be it stop company to meet their objectives. In this section it is shown the weakness which present in General Electric à ¢Ã¢â€š ¬Ã‚ ¢ The performance of General Electric is not mark able in Asian market. à ¢Ã¢â€š ¬Ã‚ ¢ General Electrical is did not keep and not meet with demand because they have a stock problem. à ¢Ã¢â€š ¬Ã‚ ¢ Due to the financial recession the stock prices is low. Opportunities Opportunities are the external changes which trends or needs that could improve the company or organisations tactical place, or which could be of a gain to them. The opportunities of the General Electric are shown below. à ¢Ã¢â€š ¬Ã‚ ¢ As in the form of training, allowances, grants etc. as governmental support General Electric could benefit from it. à ¢Ã¢â€š ¬Ã‚ ¢ An opportunity of technological changes gives the General Electric to strengthen their future achievement. à ¢Ã¢â€š ¬Ã‚ ¢ It is used to acquire new resources, enter in new market and new customers as the merger and takeover opportunities could be discover for General Electric à ¢Ã¢â€š ¬Ã‚ ¢ Towards the corporate social responsibility GE should have to focus more. à ¢Ã¢â€š ¬Ã‚ ¢ To maintain their position in the market research and development is done. à ¢Ã¢â€š ¬Ã‚ ¢ To improve cash flows they have opportunity to merge and joint venture in Asian market. à ¢Ã¢â€š ¬Ã‚ ¢ They have the opportunity of look at natural resources to meet their high demands. à ¢Ã¢â€š ¬Ã‚ ¢ It is positive sign for the General Electric as growth in aviation industry. Threats The factor which place areas of the organisation or company risky or may contain damage is called as threats. These factors are outside of the companys control. The main threats of the General Electric are outline below. à ¢Ã¢â€š ¬Ã‚ ¢ It require spent the money on regulations or taken the measure which could put pressure on General Electric as financial or other. à ¢Ã¢â€š ¬Ã‚ ¢ It is to be a threat or risk for General Electric as entering of the new competitors in the market and extra competition. à ¢Ã¢â€š ¬Ã‚ ¢ Price cuts could reduce the profits for General Electric as the price wars between competitors. à ¢Ã¢â€š ¬Ã‚ ¢ As fluctuation of currency it may impact on the revenues as General electric is operating in many countries. à ¢Ã¢â€š ¬Ã‚ ¢ As the other business the same threats of GE is recession. à ¢Ã¢â€š ¬Ã‚ ¢ The biggest threat of the General Electric is the regulation of government because in all over the world GE is the fourth major manufacturer of pollution. Analysis and Benefits of SWOT Analysis It is well-known that General Electric has several strengths that effort to its gain by striking efficiency.   Its worldwide appreciation, competitiveness and strengths put General Electrical at a constructive situation as compared to other businesses in the similar sector.   To manage the expensive business the use of company units for organisation presents an successful way. The option of irresistible senior management through work is not only reduces but it also promotes production rooted in liability accepted from the company division managers.   It extremely contributes to effectiveness while there are many activities undertaken by company.   This is improved with the acquisitions and mergers that have spread the companys manufactured goods range and in sequence foremost to development on returns gain. However the opportunities and strengths have not arrived without constraints.   Different weakness and threats intimidate the concert of the business by presenting constraints on the organisations management.   High levels of rivalry, threat of information loss and financial crises are a threat to the companys endurance.   Weaknesses within the business counting the deprived efficiency of the power division and suppleness threat could collision unhelpfully on the business. The corporation could use the opportunities and strengths to moderate them, in order to decrease the collision of threats and weaknesses.    Multiple Perspectives Needed The quality of the analysis is affected by the method which is used to obtain the inputs to the SWOT matrix. During a speedy discussion with the CEO if the information is obtain hurriedly, although CEO may have a broad view of the corporation and business, the information would signify a single point of view. The excellence of the examination will be better significantly if interview are held with a range of stakeholders such as suppliers, employees, strategic partners, customers, etc. SWOT Analysis Limitations While valuable for sinking a huge amount of situational factors into an additional convenient summary, the SWOT structure has a inclination to generalize the condition by classifying the firms environmental factors into categories in which they may not always fit. The classification of some factors as strengths or weaknesses, or as opportunities or threats is somewhat random. For example, a particular company culture can be either strength or a weakness. A technological change can be a either a threat or an opportunity. Perhaps what are more significant than the external classification of these factors are the firms consciousness of them and its growth of a strategic plan to use them to its benefit. Conclusion As the SWOT analysis issues is sorting into the six planning category these cans get a scheme which present a sensible way of assimilating the internal and external information about the business unit, delineating short and long term priorities, and allowing an easy way to build the management team these cans achieve the objectives of profit growth. This comes within reach of captures the collective agreement and pledge of those who will ultimately have to do the work of meeting or exceeding the objectives finally set. It permits the team leader to define and develop co-ordinated, goal-directed actions, which underpin the overall agreed objectives between levels of the business hierarchy. GE recognizes that part of being successful and well-respected is being socially responsible as well Has huge potential to remain successful without any major threats from competitors Staying Power Will only continue to expand