A company ABC is finding difficult to adapt itself in the changing environment. A strategic consultant has advised it to go for an environmental scanning to deal with the current problem. Being company's consultant, subm

Answer 5(c) Being the company consultant, a SWOT analysis may be proposed to analyse the changes in the external and internal environments. SWOT analysis is a tool to understand the strength, weaknesses, opportunities and threats that helps in strategic planning for a specific company. The report may include the following factors: Strengths (Internal, positive factors) What internal resources do you have? Think about the following: Positive attribute of people, such as knowledge, background, education, credentials, network, reputation or skills. Tangible assets of the company such as capital, credit, existing customers or distribution channel, patents or technology. What advantages do you have over your competitors? Do you have strong research and development and manufacturing capabilities? Weaknesses (Internal, negative factors) Weaknesses are aspect of your business that detract from the value you offer or place you at a competitive disadvantage. You need to enhance these areas in order to compete with your best competitors. What factors that are within your control detract from your ability to obtain or maintain a competitive edge. What does your business lack (for example, expertise or access to skills or technology)? Does your business have limited resources and/or in a poor location? Opportunities The opportunities for growth are understanding of the existing market conditions to establish competitive advantage. The study of the competitors (pioneers, close followers, late entrants) will determine the opportunities available for the company. Threats Threats amongst other factors can be in the form of restrictive government policies, Unpredictable existing demand for product/service, or threat of Global players entering the industry.