SWOT Analysis: Strategic Plan, Objectives & Competitive Success

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The response addresses the queries posted in 2863 words with references.

//In the following paragraphs, we will discuss about the definition of SWOT analysis along with its purpose as well as importance in developing an effective strategic plan. Further, we will analyze some of the internal organizational considerations for developing a strategic plan and its importance.//

Solution1:

The term SWOT stands for strength, weakness, opportunities and threats faced by an organization and SWOT analysis is a very important strategic tool used for evaluation of these four factors. It makes ways for understanding and identifying the specific objective of the business and identifies the various internal and external factors that are helpful in achieving those objectives. Its purpose in strategic planning is to help in achieving the targets that are set by the organization. There is no doubt that for an effective strategic plan, SWOT analysis is very crucial because the entire plan is being analyzed through the identification of the areas of development. It is a key through which an organization can understand how strengths can be leveraged, weaknesses can be improved, opportunities can be exploited and threats can be minimized.

It is a process that matches the goals, capacities and programs of the organization with the social environment (Foong, L.M., 2007).

Solution 2:

Strategic planning is the process followed by an organization in which it defines its strategies and makes plans for proper allocation of its available resources to achieve its objectives. While developing a strategic plan, it is essential to consider the various internal organizational factors in order to help the plan succeed. The internal organizational factor comprises of mission, vision, values and guiding principles, strategy and strategic objectives of the organization. Before creating any strategic plan, it is essential to know where we are standing and where we intend to go. We must have a look at the mission as well as the vision statement of the organization, match it with the required demands and then frame the strategic plan. The mission statement depicts the purpose that an organization has and vision statement determines the future by formulating a picture of the organization. Therefore, they are the most important internal considerations for the development of a strategic plan (Developing your Strategic Plan).

//In the given paragraph, we will discuss about the external organizational considerations for the development of strategic plan along with its significance. Moving on, we will talk about key planning factors for competitive success providing example of companies with successful as well as unsuccessful planning strategies.//

Solution 3:

For the development of a suitable strategic plan, external considerations are important because a plan covers the entire aspects of an organization i.e. its internal as well as external aspects. The external aspects include customers, competition, technology, supplier market and labor market. All these factors need to be given due consideration as the external environment tends to have an alarming effect on the business. A business can run smoothly only when plans are made in accordance with the different external factors. Among these factors, the most imperative factor is the customers as they are the ones who play a vital role in shaping the business and taking it to greater heights. Therefore, it is the responsibility of every business to understand the changing needs and preferences of the customers from time to time so that they can be provided with the satisfactory products and services (Hunger & Wheelan, 2004).

Solution 4:

Achievement of competitive success is the dream of any business. It solely depends upon several key planning factors which play an effective part in the success of the business. These key planning factors are as follows:

Advertising is an effective tool in attracting customers towards the business and increasing the share of profit. Therefore, strong advertisement is important.

Providing goods at low prices gives competitive edge over its competitors.

Good quality products are highly demanded by the customers. Therefore, meeting their needs through high quality products will add to the company's success.

Continuous innovation in the organization by the development of new products and services helps the organization to move ahead.
The example of an organization that has achieved competitive success through planning is Wal-Mart. It is well known that Wal-Mart has a large number of stores around the world and its products occupy a place of great significance. Its branches and stores could be easily found in each and every part of the world. This is the result of an efficient planning system followed by Wal-Mart that has brought it so far successfully. Its objectives comprises of satisfying the customers with the world's finest products.

The example of an organization that has ...