SWOT analysis is a strategic planning tool that helps organizations identify their internal Strengths and Weaknesses, as well as external Opportunities and Threats. According to Hill and Westbrook (2019), SWOT analysis is commonly used to evaluate the current position of a company and devise strategies for future growth. It provides a structured approach for decision-makers to assess various factors influencing their business environment. Additionally, Cherian and Jacob (2018) describe SWOT analysis as a framework that enhances strategic thinking by breaking down complex scenarios into manageable components, allowing for informed decision-making.
The benefits of SWOT analysis are manifold. Firstly, it facilitates a comprehensive evaluation of both the internal and external environment of an organization, which can lead to strategic alignment and informed decision-making (Kennedy et al., 2020). Secondly, by identifying strengths, organizations can leverage these to capitalize on opportunities and mitigate potential threats, thereby enhancing competitive advantage (Gupta et al., 2018). This analysis encourages proactive strategy formulation, enabling businesses to navigate challenges more effectively.
References
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Hill, T., & Westbrook, C. (2019). SWOT analysis: It's time for a product recall. International Journal of Market Research, 61(6), 739-750.
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Cherian, J., & Jacob, J. (2018). Impact of corporate social responsibility on organizational performance. International Journal of Advanced Research in Management and Social Sciences, 7(6), 146-156.
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Kennedy, R., Lothian, G., & Marshall, R. (2020). Using SWOT analysis for a social enterprise: A case study approach. Journal of Social Entrepreneurship, 11(1), 1-14.
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Gupta, A., Dhingra, D., & Sharma, S. (2018). Role of SWOT analysis in decision making: Perspective of SMEs in India. Indian Journal of Economics and Business, 17(1), 29-39.
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