What is happening in the world that might affect our company? What are their size and growth characteristics? The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market.
Both opportunities and threats are independent from the organization. How will these change in the future? What are the customer-market-technology opportunities? Identify Against whom do we compete?
Capitalize on your opportunities. An evaluation needs to be completed drawing conclusions about how the opportunities and threats may affect the firm. What is happening externally and internally that will affect our company? Just like any planning tool, a SWOT analysis is only as good as the information that makes it up.
In addition, an organization should act to convert internal weaknesses into strengths and external threats into opportunities. Weaknesses refer to any limitations a company faces in developing or implementing a strategy.
Evaluate competitors with respect to their assets and competencies. This analysis is divided into five areas: Evaluate What are their objectives and strategies? Makers of substitute products? This analysis should identify such trends and events and estimate their likelihood and impact. What changes in regulation are possible?
Technological, governmental, economic, cultural, demographic, scenarios, information-need areas Goal: What needs are there for our products and services? What are the major cost and value-added components for various types of competitors?
Do they have a cost advantage or disadvantage? If yes, it is an issue that is external to the organization. Segments, motivations, unmet needs Competitive analysis: Interest rates, inflation, unemployment levels, energy availability, disposable income, etc Technological: Is this a business in which the average firm will make money?
Overall size, projected growth, profitability, entry barriers, cost structure, distribution system, trends, key success factors Environmental analysis: What are the trends in the market? What markets are declining?
What are their implications? How are they changing? The following area analyses are used to look at all external factors affecting a company: What are the current or emerging trends in lifestyle, fashions, and other components of culture?
What are the alternative channels of distribution? Being market focused when analyzing strengths and weaknesses does not mean that non-market oriented strengths and weaknesses should be forgotten.
What are the key areas of uncertainty as to trends or events that have the potential to impact strategy? For each major market consider the following: Think Competitive Advantage What are the driving forces behind sales trends?
Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets. Shore up your weaknesses. List the strengths all companies need to compete successfully in this market. What are their barriers to entry?Free Essay: External and Internal Environmental Analysis Charles Johnson STR January 9, Professor Virginia Green External and Internal Environmental.
External environmental scans are conducted to identify important factors in the external environment. This analysis is often a critical aspect in all business or strategic plans. External environment analysis is important in determining the strategy that should be adopted by a business and internal environment analysis is critical to identify the core competencies of the business.
External environment External Factors (environment) - It is the external forces that are beyond the control of the individual business A number of external factors can affect business (STEEPLE analysis) - economy - These are factors outside the business - political/government policy that may affect its - social decisions.
External and Internal Environment Analysis Essay Words | 5 Pages External and Internal Environmental Analysis DSW is the leading footwear specialty retailer in the United States operating shoe stores in 39 states as of January 30, Essay External and Internal Environmental Analysis.
External and Internal Environmental Analysis Charles Johnson STR January 9, Professor Virginia Green External and Internal Environmental Analysis Theez Doggs .Download