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SWOT Analysis

Why do we study Business Policy? Give ten (10) reasons.

SWOT Analysis in other words can also be seen as a benchmark to measure the capabilities and strength  of the business. competitors are always looking for the weakness of a business the they can capitalize on that to  gain competitive advantage.

so in short SWOT Analysis:

1. helps an organization to realize its weaknesses, strength, Opportunities and treats that may hinder the growth of the business.

2. it helps Organizations gain competitive advantage

3. New opportunities with new ideas are identified

4. the business will know if its product has reach a stage of maturity,thats almost at the decline stage and the right solution to avert it

process of SWOT Analysis

1.strength and weakness - internal environment of the business.  skills, knowledge, level of management systems etc

2. Opportunities and Treats- external environments of the business suppliers strength, state agencies, e.g tax, labor laws, product competitors etc

SWOT Analysis  :

It is the oldest tool of strategy and comparative statics, it tells the position as on that date.

It gives bird eye view of the organisations.

Strength or Weaknesses depends on mission of the org.

Strength and weakness are internal to the Org.

Opportunities and Threats are external to the organization.