SWOT Analysis
The SWOT Analysis is an integral part of the situational analysis of an organization. In evaluating the strengths, weaknesses, opportunities, and threats of a business, valuable information can be obtained concerning critical issues which may have the potential to positively or negatively affect the future success of the organization. The SWOT Analysis begins with an internal assessment of the firm’s strengths, and weaknesses, and then looks at the external opportunities and threats that may have an effect on its operating plans. According to Al-Araki (2013), “SWOT is a much utilized tool for identifying, gathering, interpreting, and assessing internal and external data based on four key-variables (Strength, Weakness, Opportunities, …show more content…
Target’s weaknesses include: limited financial leverage, product recalls, and patent infringements. First, the company’s limited financial leverage may influence its ability to borrow and repay money, which can impact its business operations. Second, Target’s management team must find a way to mitigate product recalls. In June 2014, the company recalled Peppa Pig Knit Pyjama and Sleepsuit due to the products failure to comply with the mandatory standard for children’s sleepwear ("Form 10-K: 10-K Report: Target 2014 Annual Report | Target Corporate," n.d.). Therefore, Target must find a way to alleviate recalls so that they do not lose customer confidence and thus revenue. Third, Target must protect itself from lawsuits and legal proceedings. In April 2014, the Green Bank and Trustmark National Bank filed a lawsuit against Target for its data breach. Additionally, in August 2013, the company had a lawsuit filed against it for patent infringement by Clear with Computers, …show more content…
First, in order to stimulate a positive organizational culture, Target must ensure that all decisions are in association with the mission statements. Second, several external factors have an effect on the choices made within the organization: demographic, economic, technological, political-legal, ecological, and social-cultural factors. To succeed, Target must pay close attention to these factors: determine the target market and its desires; understand economic impacts; use technology as an advantage; make certain that laws and regulations are monitored and followed; support environmental trends; and understand social and cultural differences affecting sales. An understanding of these issues allows for a greater analysis of strengths, weaknesses, opportunities, and threats; which allows Target to exploit strengths and weaknesses, while closely tracking weaknesses and
The SWOT Analysis is an integral part of the situational analysis of an organization. In evaluating the strengths, weaknesses, opportunities, and threats of a business, valuable information can be obtained concerning critical issues which may have the potential to positively or negatively affect the future success of the organization. The SWOT Analysis begins with an internal assessment of the firm’s strengths, and weaknesses, and then looks at the external opportunities and threats that may have an effect on its operating plans. According to Al-Araki (2013), “SWOT is a much utilized tool for identifying, gathering, interpreting, and assessing internal and external data based on four key-variables (Strength, Weakness, Opportunities, …show more content…
Target’s weaknesses include: limited financial leverage, product recalls, and patent infringements. First, the company’s limited financial leverage may influence its ability to borrow and repay money, which can impact its business operations. Second, Target’s management team must find a way to mitigate product recalls. In June 2014, the company recalled Peppa Pig Knit Pyjama and Sleepsuit due to the products failure to comply with the mandatory standard for children’s sleepwear ("Form 10-K: 10-K Report: Target 2014 Annual Report | Target Corporate," n.d.). Therefore, Target must find a way to alleviate recalls so that they do not lose customer confidence and thus revenue. Third, Target must protect itself from lawsuits and legal proceedings. In April 2014, the Green Bank and Trustmark National Bank filed a lawsuit against Target for its data breach. Additionally, in August 2013, the company had a lawsuit filed against it for patent infringement by Clear with Computers, …show more content…
First, in order to stimulate a positive organizational culture, Target must ensure that all decisions are in association with the mission statements. Second, several external factors have an effect on the choices made within the organization: demographic, economic, technological, political-legal, ecological, and social-cultural factors. To succeed, Target must pay close attention to these factors: determine the target market and its desires; understand economic impacts; use technology as an advantage; make certain that laws and regulations are monitored and followed; support environmental trends; and understand social and cultural differences affecting sales. An understanding of these issues allows for a greater analysis of strengths, weaknesses, opportunities, and threats; which allows Target to exploit strengths and weaknesses, while closely tracking weaknesses and