Discuss the theory of SWOT analysis:
Companies accomplish their goals and objectives by drawing up and implementing certain organisational strategies. The strategies that are successful address four elements that exist within the environment within which the company does business. This set of four elements is referred to as a SWOT analysis when it is used by form that wishes to gain a competitive advantage (Helms & Gale, 2006:771). This analysis refers to the internal strengths and weaknesses of the company that are monitored by the managers of that, as well as the external opportunities and threats that may at times appear outside of the business (Nieuwenhuizen & Oosthuizen, 2014:44).
SWOT is thus an acronym for the four elements known as strengths, weaknesses, opportunities and threats (Chapman, 2006:116). Strengths are a business’s abilities, skills and resources that allow it to take part in activities that enables it to generate economic value and maybe gain a competitive advantage. Weaknesses are the opposite of strengths, i.e. they are a business’s lack of abilities, skills or resources that can prevent said business from being able to generate economic value or gaining a competitive advantage. Opportunities are situations in which a business has a chance to improve its performance or its competitive advantage. Sometimes anticipated, other times unexpected. Threats, on the other hand, can be seen as an individual, group or organisation outside of the business that