SWOT Analysis is one of the vital tools of strategic management. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A manager is responsible to identify the strengths and weaknesses of the organisation and work on them. At MIT School of Distance Education (MIT-SDE), we train all future managers so that they can create effective strategies. We offer management courses in different specializations including IT, HR, operations, marketing, finance, and many more. Our courses are equivalent to correspondence MBA but better than it in the sense that our syllabus is up-to-date. So, apply for our distance MBA equivalent courses and enhance your employability. To know more information you can visit here: https://www.mitsde.com/Blog/swot-analysis-essential-technique-for-managers/

1. MIT School of Distance Education
SWOT Analysis: Essential technique for
managers

2. The business environment is dynamic. Changes in the
ecosystem affect the functioning as well as the performance
of the business. Various internal and external factors influence
the business environment. So, these need to be controlled. It
is the task of managers to carry out strategic management so
that the business can sustain itself amidst all the changes. For
this managers rely on SWOT analysis. It is a widespread
technique used by managers.

3. What is a SWOT analysis?
SWOT stands for Strengths, Weaknesses, Opportunities and
Threats. The strengths and weaknesses of a business can
be identified by analyzing its internal environment, while
opportunities and threats can be identified from its external
environment.

4. For a business, STRENGTH is its inherent capacity which
enables it to gain a strategic advantage over its competitors.
For example, Hindustan Unilever Limited has its circulation
network country-wide, which acts as its strength.
WEAKNESS is the intrinsic factors which restrict the
business to gain an advantage over its competitors. For
example, family feuds or fund shortage for a business can
act as its disadvantage.

5. OPPORTUNITY is a lucrative condition that can be gained
from an external environment. The opportunities that are
seized add to the strength of a business and bestow a
competitive advantage. For example, demand growth,
globalization and liberalization act as opportunities for a
company.

6. THREAT is a hostile condition in the external environment
which may act as a danger for business. For example,
increasing competitors in the market or the addition of more
multinational companies in India can be a threat for the
Indian firms.

7. Significance of SWOT analysis
SWOT Analysis is one of the vital tools of strategic
management. It is needed for strategic formulation and
selection. It helps the firm in knowing the difference between
the things it can do and the things it is allowed to do. A
strategy becomes effective when the business focuses more
on the capitalization of the opportunities and
counterbalances any threat which may affect it badly.

8. Furthermore, it allows a business to gain a competitive
advantage of its strength and work on its weaknesses. Some
of the examples of strength, weakness opportunities and
threats are given below:

9. •Patents
•A strong brand portfolio
•Favourable access to the distribution network
•Goodwill in the market
•Strong brand name
STRENGTHS

10. •Weak brand name
•High cost
•Dispersed manufacturing locations
•No patent
•Lack of goodwill in the market
WEAKNESSES

11. •Increased penetrations especially in rural areas
•Frequency of usage in all categories
•New innovations
•Brand growth by fulfilling customer’s needs
OPPORTUNITIES

12. •Increased trade barriers
•Fluctuation in fiscal benefits
•Arrival of spurious products
•Low-priced competition
•Continuous change in the customer’s taste and
preferences
•Regular change in the oil prices
THREATS

13. A manager is responsible to identify the strengths and
weaknesses of the organisation and work on them. He
should also ensure that the organization can capitalize on
opportunities and shun threats. Through SWOT analysis,
the managers can easily create effective strategies that
can drive a business towards success. So, the managers
must be trained to follow effectively follow this technique.
Closing Note

14. At MIT School of Distance Education (MIT-SDE), we
train all future managers so that they can create effective
strategies. We offer management courses in different
specialisations including IT, HR, operations, marketing,
finance, and many more. Our courses are equivalent
to correspondence MBA but better than it in the sense
that our syllabus is up-to-date.

15. Our course includes a rich mix of theory and practical that
provides industry-specific knowledge to the candidates.
So, apply for our distance MBA equivalent courses and
enhance your employability.

16. THANK YOU