SWOT Environmental Analsyis

SWOT Environmental Analsyis
ncomplete. swot is an acronym for strengths, weaknesses, opportunities and threats. It is the culmination of much internal analysis and external research. Thinking about the outcome, one can define swot analysis as the extent to which a firm?s current strategy, strengths and weaknesses are relevant to the business environment that the company is operating in.
Strengths and weaknesses are internal aspects and Kotler (1988) suggests that these should cover the four areas of marketing, financial, manufacturing and organisational. Opportunities and threats look at the main environmental issues such as the economic situation, social changes such as the population getting older and technological developments including the internet.A swot analysis example for a cosmetics manufacturer might include:
Strengths
Strong, experienced marketing team
High brand recognition
Well established consumer testing panel
Weaknesses
Prices perceived to be too high
Costs spiralling out of control due to increases from raw material suppliers
Inconsistent brand identity
Opportunities
Growth of the internet leading to an increase in the number of consumers willing to buy online
New emerging teen market
Threats
New ?affordable luxury? entrants to the market threatening to take share from premium brands
Major competitor planning to integrate vertically and sell direct to the consumer
Rise in popularity of nail spas leading to decline in demand for nail products
A swot can be performed for companies, departments and divisions as well as individual people. Whatever the focus is the results will be very individual, even to companies competing in the same sector. One company may see new technology increasing the number of consumers who wish to buy online as an opportunity for ecommerce yet another player in the market, without any in-house internet expertise, may see this as a threat.
The importance of swot analysis lies in its ability to help clarify and summarise the key issues and opportunities facing a business. Value lies in considering the implications of the things identified and it can therefore play a key role in helping a business to set objectives and develop new strategies. The ideal outcome would be to maximise strengths and minimise weaknesses in order to take advantage of external opportunities and overcome the threats. For example, the environment may present an opportunity for a new product but if the company does not have the capacity to produce that product it may either decide to invest in new plant and machinery or to just steer clear.
The biggest advantages of swot analysis are that it is simple and only costs time to do. It can help generate new ideas as to how a company can use a particular strength to defend against threats in the market. If a company is aware of the potential threats then it can have responses and plans ready to counteract them when they happen.
There are also disadvantages of swot analysis. A typical swot analysis is a usually a simple list and not critically presented. If a company is thinking about compiling lists it may not be focused sufficiently on how to achieve its objectives. Taking a list approach can also result in items not being prioritised. For example, a long list of weaknesses may appear to be ?cancelled out? by a longer list of strengths, regardless of how significant those weaknesses are.
A swot analysis is a strategic tool but it is generally not used in a formal way. However there are now several pieces of swot analysis software available to help formalise the process and give the analysis structure. This software can help companies brainstorm and create a swot analysis and then present it as a report or presentation.
The best swot analysis will be more than a simple checklist. It will consider the degree of strength and weakness versus its competitors to determine how good that strength really is. A company may have a strong research and development team but a competitor?s could be even stronger. A good swot should also look the size of an opportunity or threat and show how these inter-relate with its strengths and weaknesses.

An organization operates in an external and internal environment. The external environmental issues that affect the marketing strategy of the organization include socio-cultural factors, legal issues, and market competition. The inherent strengths and capabilities of the organization make up the internal environment of the organization. A third environment viz. customer environment also affects the marketing strategy of the organization. The paper examines these issues. A comprehensive environmental analysis can lead to better planning and decision making, but it should be combined with the manager?s intuition and judgment to make the results of the analysis useful for planning purposes.
The surroundings of, and influences on, a particular item of interest.
The natural world or ecosystem.
#All the elements over which a designer has no control and that affect a system or its inputs and outputs.
#A particular political or social setting, arena or condition.
cattag computing The software and/or hardware existing on any particular computer system.
Ex:??That program uses the Microsoft Windows ???environment???.??
complang The environment of a function at a point during the execution of a program is the set of identifiers in the function?s scope and their bindings at that point.
The external environment of an organization is marked by intense competition between rival firms. The components of external environment include economic, socio-cultural, and global issues. In order to gain sustainable competitive advantage, the organization needs to study its external environment and exploit the opportunities prevailing therein. The paper examines the?
Competitive advantage is the measure of a firm?s competencies and performance against the factors prevailing in the firm?s environment. Pursuit of competitive advantage involves the firm being proactive towards any change in the firm?s environment. This environment includes socio-economic factors among other things. The firm has to leverage its strength?
Globalization is a complex trend, encompassing many forces and many effects. It would be surprising if all of them were always unfavorable to the environment, or all of them favorable. The highest priority should be to determine ways in which globalization can be successfully harnessed to promote protection of the?
An organization operates in an external and internal environment. The external environmental issues that affect the marketing strategy of the organization include socio-cultural factors, legal issues, and market competition. The inherent strengths and capabilities of the organization make up the internal environment of the organization. A third environment viz. customer?

sap-lap is a holistic framework that blends hard systems and soft systems paradigms
There is a pressing need to evolve a management approach which is holistic and flexible in the light of dramatic change in various external factors of the business environment and the corresponding change in the internal factors of the organizations. The concept of ?systemic flexibility?, dealing with options, change and freedom of choice, has been discussed in the Learning Lesson L1 (Vol. 1, No.1). Based on this concept, the sap-lap (Situation Actor Process-Learning Action Performance) framework has been evolved, as presented in the Learning Lesson L2 (Vol. 2, No. 1). This is a holistic framework that blends the analytic as well as synthetic paradigms on the one had, and hard systems (optimizing) and soft system (learning) paradigms on the other.sap-lap framework consists of situation, actor, process, learning, action and performance
The sap-lap framework consists of three entities in any context, viz. a situation to be dealt with, an ?actor? or group of actors who deal with it and a ?process? or processes that recreate the situation. In this framework, freedom of choice lies with the actor. A synthesis of sap leads to lap which deals with learning, action and performance.
Based on the sap-lap framework, we can prepare generic as well as specific models for managerial inquiry and problem solving. These models could be qualitative in terms of critical questions or may employ certain tools, such as quantitative analysis tools, matrix representation etc.
Purpose of sap-lap Models
sap-lap framework can be used to generate generic as well as specific models for managerial inquiry and problem solving
We often encounter situations in managing organizations and conducting management research to carry out an in-depth inquiry of the problem/case at hand for effective action. The effectiveness of the outcome of inquiry/problem solving/case development will depend a great deal on the deep rooted and creative group learning about the key facets of the problem. Such a holistic inquiry requires some systemic aids to channelize the creative process adapting to the problem at hand. A flexible modelling framework can facilitate this action learning process to aid knowledge management. sap-lap framework is generic and flexible and can be used to develop generic as well as specific models for managerial inquiry and problem solving.
The purpose of a sap-lap model is to aid the process of analysis and idea generation about the ?situation?, ?actors? and ?processes? and their interfaces. The model also guides the process of synthesis in terms of key learning areas, action points and performance impacts. Thus, the sap-lap model prepares the group for effective action in the changing situation. The model can be applied iteratively, as with each action the situation is changed and a fresh inquiry can be made.
Types of sap-lap Models
sap-lap models can be of various types depending on purpose, applications, focus, comprehensiveness, time, levels, and tools
sap-lap models can be of various types depending on the purpose, application focus, comprehensiveness, time dimension, levels of inquiry and tools used for analysis as well as presentation.
Depending on the purpose of the model, the sap-lap models can, basically, be of two types:
i. Exploratory models: Used for managerial inquiry and case development.
ii. Normative models: Used as a guideline for implementation, e.g. strategy formulation, technology transfer, project selection etc.
Depending on the purpose, we can have exploratory as well as normative models
A typical sap-lap model for case development for core competence and flexibility is presented by Kak and Sushil (2000) which is used for developing six cases in IT and Pharma sectors. A normative model for strategy formulation and implementation using core competence and flexibility is presented by Kak (2000).
Keeping in view the application focus, the sap-lap models can be classified into two broad categories:
In view of the application focus, there are generic as well as specific models
i. Generic models: These models are developed to make an inquiry into certain generic areas such as problem solving, change, flexibility (Sushil, 1999, 2000a), enterprise transformation (Sushil, 200Ob), core competence (Kak and Sushil, 2000) and so on. These models provide guiding critical questions on the six components of sap-lap which can be suitably adapted as per the requirement by adding or dropping a few critical questions. A typical generic model for ?General Problem Solving? is shown in Exhibit 1.
ii. Specific models: Specific sap-lap models can be developed in any typical context as a plan for inquiry, e.g. study of economic reforms, recession in IT industry, dot.com revolution, market penetration, new product launch and so on.
As per the comprehensiveness, the sap-lap models can again be classified into two categories:
As per the comprehensiveness we can have naive or atomic models and integrative models

SWOT Environmental Analsyis 8.4 of 10 on the basis of 1965 Review.