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Swot evaluation of measuring strategic management

Almost every successful CEO understands the value of offering quality service to gain a distinctive benefits over your competition. Given SWOTs straight forward appeal, it has become a popular tool to utilize for strategic planning. Dubrin (2008). The objective is to spell it out the technique of SWOT evaluation as a thorough, internal analysis tool to help process company inside and external information, in a position to deliver significant added value with an organizations strategic management. Modern books on strategy still feel appreciated to add SWOT, even if indeed they have reservations about its request.


Positioning the company for a lasting competitive advantage through the use of the firm's strengths

to exploit opportunities and neutralize risks while keeping away from or fixing weaknesses has long served as the main platform for formulating the firm's strategy (Discovered et a!. , 1965). This 'SWOT' analysis benefited greatly from the insights of industrial organizational economics, especially the task of Porter (1980; 1985). SWOT research was first released by Stanford University's Albert Humphrey in the 1960's (GRIN Verlag, 2007, p. 2). As being a starting place for the introduction of strategic options, Professor Kenneth Andrews first determined the value of attaching the organisation's goal - its mission and goals - using its strategic options and following activities. 'The interdependence of purposes, procedures, and organised action is vital to the particularity of a person strategy and its own chance to identify competitive advantage. ' Lynch (2006).

The intended reason for this critique is to determine, understand the usefulness, value, the creation of actionable brains and to identify those inside strengths and external opportunities that an business can leverage to perform its objectives. Also, how the marketing strategy can be developed using corporate talents as well as avoiding commercial weaknesses to enable a business to benefit from future opportunities with regards to future hazards (Bohm 2008, p2). An example of a SWOT research is provided which been produced by GARTNER with respect to BMC to help identify issues associated with BMC's primary IT operations management (ITOM) software offerings.

A SWOT analysis summarises the key issues from the business environment and the tactical capacity for an organisation that are likely to effect on strategy development. (Exploring Corporate Strategy)

A SWOT analysis is a tool strategists use to evaluate Strengths, Weaknesses, Opportunities, and Dangers.

Strengths are company resources and capacities that can lead to a competitive advantages.

Weaknesses are resources and capacities a company does not have, to the scope that their absence places the firm at a competitive disadvantage.

Opportunities are conditions in the wide-ranging and operating surroundings that allow a firm to take advantage of organizational advantages, overcome organizational weaknesses, and/or neutralize environmental threats.

Threats are conditions in the wide-ranging and operating conditions that may impede organizational competitiveness or the accomplishment of stakeholder satisfaction.

The central purpose of the SWOT evaluation is to recognize strategies that align, fit or match a company's resources and functions to the requirements of the environment in which the company functions. (Strategic Mgmt booklet). The starting place in formulating strategy is usually a SWOT analysis. Like a framework, SWOT analysis is highly commended for its simpleness and value in concentrating attention on key issues which influence business development and growth. (Journal:Strategic Change).

A SWOT examination must first start with defining a desired end express or purpose that is arranged by management. A SWOT examination may be incorporated into the proper planning model. Hence, it is important to align the SWOT evaluation with the organisation's perspective, quest, goals and aims. (OGC, ITIL v3 CSI)

Fig 3 Source Bohm, (2008)

SWOT analysis can include:

1) Internal Evaluation:

The internal examination is a comprehensive evaluation of interior environment's potential strengths and weaknesses.


A durability is a strong point of the company i. e. something an organization is proficient at doing or characteristics that gives it an important capabilities. Strength can be considered a skill, a competence, a very important organizational source or competitive capabilities or achievement that provides the company an edge. Important or important strengths should be discovered. These factors rely more in determining performance, in rivalling proficiently and in formulating powerful strategy. Strengths are like tactical assets and they are the foundation for building competitive advantages

2) External Examination:

The external evaluation is a comprehensive evaluation of exterior environment's potential opportunities and hazards.


An opportunity is a favourable condition in the organization's environment which enables it to fortify its position.

Some types of opportunities are:

An unfulfilled customer needs entrance of new technology, removal of international trade barriers etc.


A threat can be an unfavourable condition in the organization's environment which in turn causes a risk or harm to the organisation's position.

Some types of threats are:

Emergence of replacement products, new rules, increased trade barriers etc.

When in employing a SWOT analysis to devise a couple of strategies the following recommendations can be used.

Strengths (Weihrich, 1982)

Determine your organization's strong things. This should be from both your inner and external customers. Do not be humble; be as pragmatic as you possibly can.

Are there any unique or different advantages that produce your organization stick out in the crowd?

What makes the customers choose your company over the contests?

Are there any products in which your rivals cannot imitate (now and in the future)?

Weaknesses (Weihrich, 1982)

Determine your organization's weaknesses, not only from your viewpoint, but also more importantly, from your customers. Although it can be difficult for a business to acknowledge its weaknesses, it is advisable to handle the bitter reality without procrastination.

Are there any procedures or procedures that may be streamlined?

What and why do your competition operate better than your organization?

Is there any avoidance that your company should be aware of?

Does your rivals have a certain market section conquered?

Opportunities (Weihrich, 1982)

Another major factor is to regulate how your organization can continue steadily to grow within the marketplace. After all, opportunities are all over the place, such as changes in technology, administration policy, social habits, and so on.

Where and what are the attractive opportunities inside your marketplace?

Are there any new growing trends within the market?

What does your company predict in the future that may depict new opportunities?

Threats (Weihrich, 1982)

No one loves to think about dangers, but we still have to face them, despite the fact that they are exterior factors that are out of our control. For example, the recent major economic slump in Asia. It is vital to prepare yourself and face threats even during turbulent situations.

What is your rivals doing that is suppressing your organizational development?

Are there any changes in consumer demand, which demand new requirements of your products?

Is the changing technology hurting your organization's position within the marketplace?

Overall a SWOT evaluation should help target talk on future choices and the level to which an organisation is capable of helping these strategies. To be a planning tool, SWOT analysis has many benefits


SWOT research requires no extensive training or technical skills to be utilized successfully. The analyst needs only a thorough understanding of the nature of the company and the industry where it competes.

Lower Costs

Because special training and skills are not necessary, the utilization of SWOT can actually decrease the costs associated with proper planning. As companies begin to identify this advantage of SWOT examination, many choose to downsize or eliminate their proper planning departments.


SWOT can boost the quality of an organisation's proper planning even without extensive marketing information systems. However, when detailed systems can be found, they can be structured to supply information straight into the SWOT platform. The occurrence of a comprehensive information system can make repeated SWOT analyses run more efficiently and successfully.

Integration and Synthesis

SWOT analysis gives the analyst the ability to assimilate and synthesize diverse information, both of a quantitative and qualitative dynamics. It organizes information that is well known, as well as information that has only recently been acquired or learned. SWOT evaluation can also package with a broad variety of information options. Actually, SWOT helps enhance information diversity from a weakness of the look process into one of its major advantages.


SWOT research fosters cooperation and available information exchange between efficient areas. By learning what their counterparts do, what they know, what they think, and how they feel, the analyst can solve problems, fill voids in the research and eliminate potential disagreements before the finalization of the plan

There are, however, some dangers in starting a SWOT examination. The other fundamental concerns about the intrinsic mother nature of SWOT evaluation: (Journal: Product Recall)

The amount of the lists.

No need to prioritize or weight the factors revealed.

Unclear and ambiguous content.

No image resolution of issues (much like the example given in the preceding paragraph).

No responsibility to verify claims and ideas with data or analyses.

Single level of analysis is all that is required.

No logical hyperlink with an implementation phase.

There is therefore a lack of rigor in SWOT since there is no inherent necessity to overcome these weaknesses.

BMC SWOT Analysis

The analysis identifies issues relating to BMC's core IT businesses management (ITOM) software offerings. SWOT examination only those characteristics which have the greatest potential effect on BMC's market position and strategy in the worldwide ITOM software industry. This document will not cover political, economic, social and technical characteristics, which have emerged as general factors impacting all players on the market. Gartner elected to examine BMC for this SWOT analysis based on several factors, like the following:

BMC is probably the top four most significant companies globally placed in Gartner's ITOM market show analysis.

BMC holds a worldwide control position in the IT service office software market.

In the database management system (DBMS) management and asset management software marketplaces, BMC is the major vendor globally.

In the job scheduling and run booklet automation market, a sub-segment of the ITOM market, BMC is among the largest players. BMC is ranked a Leader in "Magic Quadrant for the IT Service Office, " "Magic Quadrant for Job Arranging" and "Magic Quadrant for IT Event Correlation and Examination, " The competitive qualities mentioned in this SWOT examination pertain to BMC globally. We are list only those characteristics that have the greatest potential effect on BMC's market position and strategy in the worldwide ITOM market. There are additional Gartner reports (for example, Magic Quadrants, MarketScopes and Competitive Panoramas) offering research in other key areas or service competencies, which are resolved only broadly in this doc. Gartner (2010).

The publisher makes note that an activity of analysing an organisation's exterior and inside environment by which using a SWOT analysis technique can assist in the correct strategy to be picked and because of this is a basis for action. Two important components that help out with the tactical management process that are highlighted by the writer, external analysis and internal examination blended constitute was has come to be called the SWOT evaluation. Arguably, the written text provides very limited information based on SWOT analysis, its inner workings, benefits and goal. The writer is considerably generous to outline the external and internal examination in detail and how it interacts with Porters five makes model.


A SWOT (advantages, weaknesses, opportunities and risks) evaluation (Johnson and Scholes, 2002) summarises the main element issues from the business enterprise environment and the proper capability of an organisation that are likely to effect on strategy development. The goal is to identify the extent to which the current weaknesses are highly relevant to, and capable of, coping with the changes occurring in the business environment. It can even be used to assess whether there are opportunities to exploit further the unique resources or primary competences of the organisation. The major gain is that the formulation of strategies is immediately linked to the SWOT evaluation, providing a rational reproducible effect.

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