Swot Essay

390 WordsJun 23, 20122 Pages
SWOT Analysis; A traditional approach 2 internal analysis: SWOT is an acronym for T internal Strengths and Weaknesses of a firm and T environmental Opportunities and Threats facing T@ firm. SWOT analysis is a historically popular technique through which managers create a quick overview of a company’s strategic situation. SWOT Components; An opportunity is a major favorable situation in a firm’s environment. A threat is a major unfavorable situation in a firm’s environment. A strength is a resource or capability controlled by or available 2 a firm T@ gives it an advantage relative 2 its competitors in meeting T needs of T customers it serves. A weakness is a limitation or deficiency in one or more of a firm’s resources or capabilities relative 2 its competitors T@ create a disadvantage in effectively meeting customer needs. Limitations of SWOT Analysis; A SWOT analysis can overemphasize internal strengths and downplay external threats. A SWOT analysis can be static and can risk ignoring changing circumstances. A SWOT analysis can overemphasize a single strength or element of strategy. A strength is not necessarily a source of competitive advantage. Value Chain Analysis (VCA); T term value chain describes a way of looking at a business as a chain of activities T@ transform inputs into outputs T@ customers value. Value chain analysis (VCA) attempts 2 understand how a business creates customer value by examining T contributions of different activities within T business 2 T@ value. VCA takes a process point of view. Conducting a VCA . Identify activities. Allocate costs. VCA proponents hold T@ T activity-based VCA approach would provide a more meaningful analysis of T procurement function’s costs and consequent value added than T traditional cost accounting approach. Difficulty in Activity-Based Cost Accounting; It is important 2 note T@ existing financial

More about Swot Essay

Open Document