Business strategy

Date: October 2002
No 1 .

Give the importance of environment analysis so far a
strategy is concerned
In this context what is the particular significance of
the SWOT analysis?
What are the weaknesses of the SWOT and how
can they be overcome?
.
Once an organization has specified its objectives, it has to begin with its current situation to devise a strategic plan to reach those objectives. Changes in the external environment often present new opportunities/threats and new ways to reach the objectives.
An environmental scan is performed to identify the available opportunities. The organization must know its own capabilities and limitations in order to select the opportunities that it can pursue with a higher probability of success. The situation analysis therefore involves an analysis of both the external and internal environment.
The external environment has two aspects: the macro-environment that affects all firms and a micro-environment that affects only the f...