Summarize the purpose of SWOT analysis and how it is best us

Summarize the purpose of SWOT analysis and how it is best used in the planning process?

Solution

This purpose pf SWOT analysis is to provide a framework to reflect on the firm\'s ability to overcome barriers (or threats) and avail of the opportunities emerging in the Environment.   The dimensions of internal capabilities have to be relevant because they related with environmental conditions.The analysis of a firm\'s strength and weaknesses can be fruitful only if the environmental factors and market conditions are considered along with the internal capabilities. This approach essentially involves matching of the internal capabilities with the environmental opportunities, Threats). This analysis is to consist of interlinking the ETOP ( Environmental Technology Opportunities Portal) and SAP.(Strategic Advantages Profile) .

It is considered as best in planning process because, all the enterprises are not equally strong in all their functional attributes. Problem like organization not having competitive advantage favorably or organization not having proper manager in marketing area. So, planning process is needed to understanding the internal capabilities of an organization as well as assess the nature and magnitude of resources reflecting the inherent strength of the resource base comprising physical, financial, human and intangible resources of a firm.