Reference no: EM132583931

An organization can use analytical tools to create value and develop a strategy to achieve and maintain competitive advantage over its competitor. The SWOT analysis its helpful to achieve its strengths internally in the organization and opportunities externally of the environment. It is important to be aware of its weaknesses and what their threats are. It is helpful for an organization to determine their objective, to also build grid with four squares and write down their strengths and weaknesses and draw conclusions from there. SWOOT can be described as environmental factors that can significantly influence organizational operations, external variables that can affect its decision making. Analytical tools create value for an organization everywhere, they have useful and pertinent information needed for a business to be effective. Analyzing increases efficiency, it helps identify new opportunities that can be overlooked, maybe not tapping into customer segments for instance. Knowing the weaknesses of the organization can help hire innovative people that can help turn that around and aid in ways to build strength in those weaknesses. To be aware of threats and know the competition and what they offer oppose to the business, helps the organization stay ahead of the game with gaining customers and obtaining their business. It is very beneficial to work in-depth environmental analysis before creating a strategy to help identify threats and opportunities that can impact the organization in a negative way.

References:

Thompson, A. A. (2018-2019). Strategy: Core concepts and analytical approaches (3rd ed.) BSG electronic edititon). Burr Ridge, IL: McGraw-Hill Education. Chapter 3, "Evaluating a Company's External Environment" (pp.32-62)Chapter 4, "Evaluating a Company's Resources and Ability to Compete Successfully" (pp. 64-88)

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