The Role of SWOT in Strategic Planning

Strategic Planning pic

Strategic Planning
Image: smallbusiness.chron.com

Diane Kaern is an alumnus of the University of Pittsburgh, where she earned her MBA. She has decades of experience spread between two well-known companies: Siemens AG and Hewlett-Packard Company. Within her professional circles, Diane Kaern is known for her strategic planning skills.

Strategic planning is an organizational management activity that aims to help the company set its priorities straight. Different companies employ various analytical methods in strategic planning; one such method is SWOT analysis.

SWOT analysis is regarded a valuable tool in preparing a strategic plan. The acronym SWOT refers to strengths, weaknesses, opportunities, and threats. In this process, these four critical components are identified in order to determine the external and internal factors that can affect the company’s future performance. SWOT analysis can help companies use their resources wisely, improve operations, discover opportunities for growth, and develop contingency plans to address possible risks.

Sometimes, companies also perform SWOT analysis on their competitors. Completing this type of analysis allows for a side-by-side comparison of both companies’ strengths and weaknesses, thereby allowing the company to competitively position itself.

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