SWOT (Situation) Analysis
SWOT Analysis
Before deciding on future strategies and/or marketing objectives, an organization must clearly understand the position of the company and its products in the marketplace. Situation analysis considers key products and the company’s position in strategic markets and key sales areas. It reviews the economic climate and the business climate together with aspects of an organization and its operations (which can be influenced). It also relates and compares a company and its products with competitors.
The SWOT analysis is typically an analytical platform for creating strategic plans. Ultimately, every organisation seek to answer three strategic questions:
The SWOT acronym stands for Strengths, Weaknesses, Opportunities and Threats
Strengths and weaknesses refer to the company and its products.
Strengths are inherent advantages in the organization’s market-product portfolio, and its operations in relation to competitors. Weaknesses are inherent disadvantages. Opportunities and threats are usually external factors over which the company has no control. Opportunities and threats are obtained and identified from an external audit of the macro (or far) environment (sometimes called an environmental analysis or a STEP or PEST analysis).
SWOT analysis involves understanding and analysing the strengths and weaknesses of the organization (internal), and identifying threats and opportunities in the marketplace. An organization should then attempt to exploit strengths, overcome or ameliorate weaknesses, seize opportunities and defend against threats.
A SWOT analysis will vary depending upon the type of organization and the business that the organization operates within. A SWOT analysis is usually articulated in a cross formation thus:
Strengths Weaknesses Opportunities Threats
Questions
1. Please explain the resource based view of strategy (RBV)?
2. What is VRIO Framework?
3. How can a SWOT analysis be useful for both internal and external organizational environmental analysis?
Please answer the following questions in relation to your chosen hotel.
4. What does your company do well? (Many hotels? Strong brand? Good marketing skills? R&D skills and leadership? Information system competencies? Human resource competencies? Appropriate management style? Well-developed corporate strategy? Good financial management? High levels of customer awareness? Good global distribution network? Dominance of key market segments? , etc. )
5. What does it not do well? Rising manufacturing costs? Poor marketing plan? Inadequate information systems? Inadequate human resources? Loss of brand name capital? Bad reputation? Poor financial management? Loss of corporate direction? Inadequate distribution network? Ageing hotels in declining markets? Small company with larger well known competitors in the market place?, etc)
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