Management needs to do SWOT analysis before creating their strategic plan, in order to be successful (Gamble, Thompson 2011). The first letter strands for the strengths of the company. Strength comes from the companies resources. When analyze a company’s strengths a manager needs to look at the market, and use financial ratios to analyze the profit margin (Gamble, Thompson 2011). Some resources would include money, products, business alliances, or even the customer base. The company’s brand name could be an asset, with a good customer base (Gamble, Thompson 2011). They also need to look at the demand for the product that is being offered, a high demand is strong …show more content…
If a manager creates a plan without knowing the internal operations of the company which would be strengths and weaknesses, then that plan would be at risk to fail. There is not a way to accomplish objectives without being able to use a business’s strengths, to overweigh the weaknesses. The second part the opportunities, and threats is an external environment of the company (Gamble, Thompson 2011). It is the environment in which the company operates in. Without knowing the operating environment it would be hard to prepare a vision for a