Swot Analysis : The Swot Essay

1387 Words Oct 24th, 2016 6 Pages
Firms seeking to create a competitive strategy have always employed the SWOT analysis tool. This tool evaluates the strengths, threats, weaknesses and opportunities of a business organization to guide in the establishment of the most appropriate strategy for gaining competitiveness. However, critics have recently questioned the theoretical viability and effectiveness of the SWOT analysis tool (Valentin, 2005). These critics argue that SWOT is based on intuition, whose nature is subjective, non-procedural, avoids quantifying and cannot predict future occurrences. The SWOT analysis is, therefore, an independent tool, whereas organizations require a comprehensive set of tools for analyzing different situations. This essay analyses the second alternative of developing SWOT into a comprehensive tool named Meta-SWOT, which eliminates the rigidity of the former (Agarwal, Grassl, & Pahl, 2015). Recent research conducted by various business organizations indicates that SWOT analysis ranks low compared to other analytical tools, it also distorts performance. Therefore, many organizations opt out of it. Despite the shortcomings of SWOT analysis, the idea behind it is to analyze the internal and external environments of a firm to identify various challenges (Queensland Governmnet, 2016). The internal environment encompasses the resources and shortcomings of a given firm while the external environment entails the opportunities available to a firm and the factors that pose a threat to…

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