Strengths And Limitations Of SWOT Analysis In Strategic Planning Process

SWOT Analysis refer to a number of different techniques used by professional project managers to help with decision-making. It is a tool of finding out the Strengths, Weaknesses, Opportunities, and Threats that are to be expected in a business environment. This technique was developed by Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies. By definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over which a business operator have some form of control, whereas Opportunities (O) and Threats (T) are considered to be external factors over which one have no control over.

Benefits of SWOT Analysis in strategic planning is as follows:-

 It

 Reverse its weaknesses.

 Maximize its response to opportunities.

 Overcome organization’s threats.

 It helps in identifying core competencies of the firm.

 It helps in setting of objectives for strategic planning.

 It helps in knowing past, present and future so that by using past and current data, future plans can be reshaped.

Shortcomings of SWOT Analysis in strategic planning process:-

There are certain limitations of SWOT Analysis which are not in control of management. These include-

a. Price increase;

b. Inputs/raw materials;

c. Government legislation;

d. Economic environment;

e. Searching a new market for the product which is not having overseas market due to import restrictions;

1. Clear definition of company’s vision and mission communication to its employees and staff.

2. Forming committee which comprises of board of directors, finance committee, production committee and sales & marketing, research & design committee to share ideas and contribute to the solution.

3. JJ’S Fashions can synergy / merge with other company in similar industry.

4. Get educated about the business side of fashion. Being a successful fashion designer not only requires talent and creativity, it also requires a sound knowledge of the business and marketing aspects of the fashion world.

5. Proper training and development to be adapted to its employees. Keeping the staff updated on the happenings in the fashion industry by regularly reading trade journals such as “The Trend”, “Wanita”, “Woman at Work” and the managers keeping up with international fashion trends such as from FashionNet, etc.

6. JJ’S Fashions to diversify and cater its fashions to both male and female category specializing and targeting different age group.

7. JJ’S Fashions to globalization its target audience. To go global but think local by using internet e-commerce marketing