SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats in a business context. It helps organizations understand internal and external factors that can impact their performance. By analyzing these elements, businesses can develop strategies to leverage their advantages and mitigate risks. The text includes a case study of McDonald's SWOT analysis, highlighting how it navigates its business environment.
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SWOT analysis is a strategic planning tool used to identify and assess an organization's internal strengths and weaknesses, as well as external opportunities and threats
Internal Factors
SWOT analysis helps organizations understand their internal strengths and weaknesses, which they can control and improve upon
External Factors
SWOT analysis also helps organizations identify external opportunities and threats that may impact their business
SWOT analysis provides a clear understanding of an organization's strategic position and aids in developing targeted strategies for growth and improvement
Strengths are internal capabilities that give an organization a competitive edge
Weaknesses are internal limitations or deficiencies that hinder an organization's performance
Opportunities are external factors that an organization can exploit for its benefit
Threats are external risks that could adversely impact an organization
McDonald's, a global leader in the fast-food industry, provides a practical illustration of how SWOT analysis can be used to understand an organization's strategic position
While SWOT analysis is a valuable tool, it has limitations such as producing extensive lists and lacking prioritization
SWOT analysis is often used in conjunction with PESTEL analysis, which focuses on external factors, to provide a more comprehensive evaluation of an organization's strategic position
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In ______ analysis, businesses can create strategies by capitalizing on strengths and ______ while mitigating weaknesses and threats.
SWOT
opportunities
01
SWOT: Strengths
Internal capabilities giving competitive edge, e.g., strong finances, advanced tech, skilled workforce.
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SWOT: Weaknesses
Internal limitations hindering performance, such as outdated systems, poor customer service.
