BU288 Lecture Notes - Lecture 7: Swot Analysis
Document Summary
Diagnosis (assessment) : environmental factors are assessed in terms of their impact on the organization. Some factors in the environment may entail an opportunity while others may pose a threat to the organization. The degree of impact may also vary from one factor to another. Swot analysis, etop and other such techniques are used for environmental diagnosis. The four stages given above are intertwined as can be seen form fig. It is necessary for a business to understand the environmental forces and conduct business accordingly. Hence, a business has to study the business environment in a continuous manner due to the following reasons: A business may get first mover advantage by identifying and exploiting the opportunities earlier than the competitors. It provides a sustainable competitive advantage to the business. Strategy is a long term action plan formulated and implemented for competitive advantage. They are formulated and implemented considering the internal as well as external factors.
