This refers to an evaluation that is undertaken by organizations in order to gain insights on the internal strengths and weaknesses and as well external opportunities and threats. The markets in which businesses operates in is dynamic in nature. Managers are faced with decisions that are crucial for the businesses to meet its mission and objectives. SWOT analysis is therefore a strategic tool that business managers use in order to assess the possibility of a success or a failure in implementing a particular decision. For example, if business organization has a new product that is unique and selling at a premium, it is important to consider the possibility that the competitors are working towards developing a similar/competing product. This will inform the managers in their sales projections and financing plans. Thus, SWOT analysis helps businesses to determine the best course of action under a given set of circumstances (Pahl & Richter, 2009).
There are other strategic planning tools that are also used in assessing management decisions. They include SCOPE planning, SOAR, Defensive/offensive, and CORE assessment. SCOPE is an acronym for situation, core competencies, obstacles, prospects and expectations. It aligns the internal and external factors to give the management a road map that will be used in the decision making. SOAR is an acronym the strengths, opportunities, aspirations and results. It allows positive thinking in solving problems and allows inclusion of motivation and engagement in the planning. The defensive/offensive strategy refers to a model that allows business to defend their grounds in terms of market share and make strides towards gaining share from the competition. CORE stands for capital investment, ownership involvement, risk assessment and exit strategy. It is applicable to new businesses (Winston, 2017).
Each business has got its unique characteristics and faces different challenges. It is paramount for the organization to analyze the unique needs of a business before deciding on the most applicable strategic management tool.
References
Pahl, N., & Richter, A. (2009). SWOT Analysis - Idea, Methodology And A Practical Approach. München: GRIN Verlag GmbH.
Winston, B. (2017). Alternatives to SWOT Analysis | Chron.com. Retrieved from http://smallbusiness.chron.com/alternatives-swot-analysis-64967.html
