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The SWOT analysis: Environmental analysis Analytical Essay

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Updated: Jul 3rd, 2019

The SWOT analysis encompasses the strengths, weaknesses, threats, and opportunities. SWOT Analysis is critical in evaluating the strengths, weaknesses, opportunities, and threats aspects of an organization from which informed decisions are made. The art of communication is effective when conducted clearly within the organization’s encode and decode channels in environmental analysis.

Organizations function best when this system is perfected and must all be included to understand the micro and macro business environment. Therefore, successful organizations manage information obtained through understanding the strengths, weaknesses, opportunities, and threats to establish and executive short term and long term strategic plans within minimal risk quotas (Dreher & Dougherty, 2002).

The practice of information management involves the science of processing information to facilitate informed decision making among managers. In order for an organization to understand its strengths and weakness, it must comprehend the operation of information management. SWOT analysis enables an organization to manage the threats and opportunities it faces. SWOT analysis provides a framework for an organization to create a reliable strategy for surviving competition.

However, the business may not have accurate focus when any of the SWOT elements is not reviewed. For instance, ignoring the weaknesses and threats facing a business may lead to failure or even closure of the business since managers or administrators of such a business will base their focus on general assumptions that may not auger well with the business.

On the other hand, ignoring opportunities and strengths of a business in environmental analysis many lead to underperformance of the business since these parameters are instrumental in understanding the best ways of ensuring competitive advantage.

The ideal way of ensuring that each element in environmental analysis is covered is through preplanning of the analysis and establishing the parameters against indicators of strategic business plans (Dreher & Dougherty, 2002). As a result, the analysis must be aligned to expected and actual results.

Forecasting is of great importance to any organization. This enables proper planning through budget creation and prepares the company for the financial period ahead. Information technology has enabled proper forecasting by enabling fast efficient data analysis, data storage and data mining operations greatly rely on this forecast to be able to plan themselves through creation of specific departmental targets, departmental costs and total revenue allocations.

Organizations that deal with a lot of customers who requires services need an efficient queuing mechanism to manage, service delivery to these customers. Thus, focusing ensures operations efficiency in time spent in waiting as well as total services that are part of strategic planning.

Reflectively, setting an objective and then designing a method to achieve is a common practice in every organization. All the organizations follow the norm but few are able to achieve or exceed the set objectives. The difference of result is due to the approach taken by the organization. The organizations which are able to implement and manage their resources in effective and efficient manner stand out from the rest.

The phenomenon is termed as strategic planning and systems management through focusing. Through focusing, the organization is able to shift risks and costs arising from losses from substandard goods supplied in scenarios where management makes representations on areas concerning the quality of the product. This reduces administrative costs while increasing chances of the company’s profitability as the operations become streamlined.

In addition, the organization is able to manage its supply chain efficiently. The variables are connected at central point by strategic planning which encompasses costing, speed, quality, flexibility, and dependability to create a smooth continuous operation tracking model that operates like computer from one segment to another (Dreher & Dougherty, 2002). This forms the basis of strategic planning and execution.


Dreher, G. F., & Dougherty, T. W. (2002). Human resource strategy: A behavioral perspective for the general manager (1st ed.). New York, NY: McGraw-Hill Higher Education.

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1. IvyPanda. "The SWOT analysis: Environmental analysis." July 3, 2019. https://ivypanda.com/essays/the-swot-analysis-environmental-analysis/.


IvyPanda. "The SWOT analysis: Environmental analysis." July 3, 2019. https://ivypanda.com/essays/the-swot-analysis-environmental-analysis/.


IvyPanda. 2019. "The SWOT analysis: Environmental analysis." July 3, 2019. https://ivypanda.com/essays/the-swot-analysis-environmental-analysis/.


IvyPanda. (2019) 'The SWOT analysis: Environmental analysis'. 3 July.

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