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The use of an SWOT Analysis

SWOT which means an abbreviation of (strength, weakness, opportunity and danger; is an examination that defined as method to study organization's inside factors working with talents and weaknesses, and its own environmental opportunities and also the threats. SOWT analysis usually utilization in the preliminary period of decision making as an over-all tool which it made for being antecedent to proper planning in various case and applications. (Johnson et al. , 1989; Bartol et al. , 1991). Predicated on some other definitions like Formisano (2003), SWOT Examination can be used as a model, process, approach or platform to provide information about those factors advantages, of an organization insurance agencies many applications with opportunity of being used in all the degrees of the organization.

SWOT examination is an integral part of the tactical planning process. Companies have some internal and exterior forces in the business environment. As an initial step of any strategic planning system, the tactical factors that are related to the potential of the business, should be identified and assessed. The id and evaluation of the tactical factors really helps to reach a genuine strategic plan and consequently the managers are able to gain understanding of internal and external dynamics of the business and establish suited actions to be able to attain good performance (Houben et al. , 1999, p. 2) To be able to have good performance in tactical planning, the near future objectives on the company's durability and the weaknesses of the business must be looked at by the business. Internal advantages and weaknesses are the primary the different parts of the proper management process but it must be strengthened with considering opportunities and dangers from the external environment.

SWOT analysis is the inner evaluation of organizational Talents (what an procedure does indeed well) and Weaknesses (what an procedure does not do well) and the as the external analysis of environmental Opportunities (potential favorable conditions for an operation) and Dangers (potential unfavorable conditions for a surgical procedure); which is a general tool at the initial stages of policy making and proper planning and as well, it is a part of the latter periods of analyzing the performance and planning for further development of the business on. SWOT evaluation is utilized as a technique in order to build up a planning process and solutions for the problems that are related to different internal and exterior factors and boost the potential of advantages and opportunities as well as lessening the negations of weakness and risks (Sharma &Singh, 2010; Schermerhorn, 2006; Bennett, et al. , 2003).

The first step of SWOT evaluation is a systematic evaluation of the organization's resources and capabilities. Durability in SWOT research is connected to competitive advantages and distinguishing competencies of the company in its market environment. But weaknesses can be considered as limitations that make a difference the progress of the company in a poor way. This analysis includes identifying core competencies by considering special talents which are superior to the competitors. The primary competency is a special strength which gives an organization a competitive edge and it could be found in special knowledge or expertise, superior technologies, successful manufacturing technology, or unique product syndication systems, among a great many other opportunities. Strategy formulation has an purpose which is to create strategies that leverage central competencies for competitive gain by making organizational advantages and reducing the impact of weaknesses (Houben et al. , 1999; Schermerhorn, 2006).

Figure 1. SWOT Research of Advantages, Weaknesses, Opportunities, and Threats

(Schermerhorn, 2006, p. 88)

Strengths: Strength of an operation is the first inner element of the SWOT examination. The talents cover what an operation does well. The advantages may be being low-cost designer or high quality product maker. It is determined by the perspective (Bennett, et al. , 2003, p. 2).

Weaknesses: The weakness of operation is another interior element of the SWOT evaluation. Analyzing weaknesses cover figuring out what an operation does not do well. They must be evaluated from the inner and external point of view of the procedure. Usually all businesses, regardless of size or profitability have weaknesses (Bennett, et al. , 2003, p. 2).

Opportunities: Opportunity is the first exterior factor of the SWOT analysis. The opportunities cover any convenient situation in their environment that the procedure may gain an edge form. The number can be from diversification and the use of new technology to market tendencies and relationship advancements. And usually all operations involve some opportunities. It is important to analyze them well (Bennett, et al. , 2003, p. 2).

Threats: Another element of the SWOT examination is the external threats. All businesses can face threats and the hazards can range between lower international prices to key interactions which may have some problems. The operation of the organization must take some actions to prevent the external risks (Bennett, et al. , 2003, p. 2). SWOT analysis is used as inputs to generate possible strategies. And next step is to choose these strategies after the identification and examination of talents, weaknesses, opportunities and threats (Houben et al. , 1999).

2. 1 SWOT Evaluation Steps

Based on Houben et al. (1999) as an initial step in the development of a proper planning system, business professionals therefore commence with the id and evaluation of the tactical factors which assist or hinder the company in attaining its full potential. Normally every company is met with a energetic environment; the comparative need for a strategic factor will change constantly, so the SWOT evaluation is correspondingly to be of a everlasting nature. The set of proper factors can be utilized as a spot of departure for the genuine tactical plan within a little or mid-sized enterprise. It really is a flexible device. The greatest edge is that it can help managers of small and mid-sized enterprises survey the various management areas, gain perception into the value within the framework of the business, and accordingly start suitable actions.

Good performances within a company are the results of right conversation of business management with its environment. As Zack (1999) reviewed, this environment can be of either an interior or external character. To operate effectively in this esteem, the company must concentrate its future goals on its strengths, while averting tendencies related to the firms weaknesses. To simplify the way that SWOT analysis usually used, there are to preliminary steps to check out: 1. Internal Evaluation: Evaluating the capacities of corporation. Carefully evaluating all talents and weaknesses and attracting ideas from jobs that contain both successfully and unsuccessfully completed. 2. Exterior Analysis: Looking at the main tips in environmentally friendly analysis, and identifying those tips that cause opportunities for group, and those that pose hazards or hurdles to performance. Carefully examining the market where it intends to start the product and analyze what the status of the competition.

Bartol et al. (1991) mentioned that giving an answer to internal advantages and weaknesses is therefore an important component of the strategic management process. But success can only be achieved in this admiration to the extent that one knows the opportunities and hazards caused by the exterior environment. The popularity of the internal talents and weaknesses, as well as external opportunities and risks, takes place on the basis of a report, which called SWOT evaluation. Generally no standard list of critical factors which make an application for all companies is available as a result of specificity of this set. Inside the framework of the study, however, we thought we would concentrate only on the internal business environment. This therefore only concerns the identification of strengths and weaknesses.

Strengths thereby relate to the competitive advantages and other distinguishing competencies which may be exploited by the company on the marketplace. A distinguishing competence is something which may be done very capably with a company. Weaknesses, on the other hands, are constraints which impede the progress of the company in a certain course. Weaknesses are those features of the organization that impede reaching the objective and limits or deficiency in a single or even more resources or competencies in accordance with rivals that impedes a firm's effective performance. Opportunities are exterior conditions that help achieve the objective major situation in a firm's environment. Key tendencies are one way to obtain opportunities and recognition of a recently overlooked market portion, changes in competitive or regulatory circumstances, scientific changes, and better buyer or supplier relationships could represent opportunities for the company. Dangers are also outside conditions that impede obtaining the objective and impediments to the firm's current or desired position. The entry of new opponents, slow market growth, increased bargaining power of key customers or suppliers, technological changes, and new or revised regulations could represent hazards to a firm's success (Mintzberg and Quinn, 1991).

According Johnson et al. (1989) ; Bartol et al. (1991) taking tactical actions is advised for the organizations to maintain or sustain advantages, offset weaknesses, avert or mitigate dangers, and capitalize on opportunities. Strategies can consider as the balancing function between the exterior environment like opportunities and risks and the inner capabilities of the firm such as advantages and weaknesses. Quite simply SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations.

As an initial step in the introduction of a proper planning system, business professionals should therefore commence with the recognition and evaluation of these proper factors which assist or hinder the company in attaining its full potential. Because every company is confronted with a dynamic environment, the relative need for a strategic factor will change constantly, so this analysis is appropriately to be of a everlasting nature. In determining SWOT a specific factor is relevant only with reference to a specific aim. For example, a big cash balance is power if the objective is growth. If the objective is to discourage a hostile take-over, a big cash balance is a weakness. The SWOT analysis headings give a good framework for researching strategy, position and direction of an company or business proposition, or any other idea. Doing a SWOT examination may also be simple and useful which can be used for business planning, tactical planning, competitor evaluation, marketing, business and product development and research information (Houben et al. 1999).

The talents and weaknesses are available in the useful company domains, or they might be a consequence of abnormal connections between different fields. Furthermore, the advantages and the weaknesses of an aspect must be measured at different levels of the organization; this can be at group level, at specific company level or at product or market level. The analysis of the shows of days gone by may well not be neglected with the measuring of strengths and weaknesses because it provides historic information in to the strategy of the business previously implemented as well as the successes appropriately achieved (Cup, 1991). Historical investigations may well not only be limited to the pure examination of the paths followed by the corporation in the past and the results achieved, they must also devote attention to the reasons for this success. Using the lists compiled, kind and group facts and ideas with regards to the objectives. It might be necessary for the SWOT members to select their five most important items from the list in order to get a wider view. Quality of goals is an integral to the process, as evaluation and reduction will be necessary to cull the whole wheat from the chaff. Even though some aspects may necessitate more info or research, a picture should, at this time, learn to emerge in response to the objectives (Johnson et al. , 1989; Bartol et al. , 1991).

3. SWOT Examination and Strategic Planning

According to Hill and Roy (1997, p. 46), SWOT evaluation is one of the very most straightforward methods for examining the strategy of an organization. SWOT as it described before, is the acronym for "strengths, weaknesses, opportunities and risks" which matching to Zack (1999, p. 126) SWOT framework is one of the well-known methods to define a technique. Considering Zack, Hill and Roy statements about SWOT, it can conclude that approach can be utilized in order to specify and examine organization's strategy. This research includes two parts. First, we must analyze the inner characteristics and capacities of the business, which evaluation helps us to identify the advantages and the weaknesses that the business has. In the next part, we have to analyze the exterior situations in the competitive environment, which this examination helps us to recognize the opportunities and the threats that the company may faces. After identification of these four factors, a technique for the company can be offered. Based on Zack assertion (1999, p. 127) strategy is the act of balancing between inner and exterior situations of confirmed firm. And a good strategy is the one which ensure a fit between external situations of the company with its own internal features (Hill and Westbrook, 1997, p. 47). This evaluation was in electric power for at least 30 years. Zack (1999, p. 128) feels that companies who've superior knowledge, can maintain their competitive benefits through those knowledge in order to combine, organize, develop and exploit their resources and features in a fresh way and better than their competitors. Buckman Labs competed in certain markets predicated on its superior knowledge of how to apply its chemicals to resolve the process treatment problems of its customers.

After explaining SWOT framework in prior section, and discussing knowledge as a tactical property and the lasting competitive advantage which could be performed through the application of the knowledge that exists in an organization, the writer (Zack, 1999, p. 130) proposes that: "Firms need to perform a knowledge-based SWOT evaluation, mapping their knowledge resources and capabilities against their strategic opportunities and threats to better understand their things of advantages and weakness". The results of this research could be a map that will help the business to improve its knowledge advantages and reduce its knowledge weaknesses. This map unveils the knowledgebase resources and capacities of one company and the data that this corporation needs to become competitive on the market by providing the products and services. As we mentioned earlier, we can thought of this as a knowledge strategy.

Zack (1999, p. 131) mentions three steps that needs to be used order to describe the link between strategy and knowledge:

"1. Organization must identify its strategic goals.

2. Business must evaluate the knowledge that it requires in order to attain its proper goals.

3. Comparison between your knowledge that one company has and the data that one firm needs reveals the strategic knowledge gaps of this organization. "

A firm, regarding with its current knowledge, must identify the best product and market opportunities for exploiting that knowledge. For instance, Most importantly, it acknowledged the difference and been able and developed its strategic knowledge appropriately (Zack, 1999, p. 131).

Therefore, we can consider the data as an important strategic tool for sustaining the competitive gain. You can find 3 explanations why knowledge makes the benefit lasting, as first that knowledge which is gained from organizational methods through experience is exclusive and cannot easily be reproduced. Because acquiring this knowledge require competition to activate in similar encounters which need money and time. Second is the fact that, those organizations which know more can find out more in comparison to their competitors who have just began to accumulate knowledge. Third reason is that, the integration between recently gained knowledge and the data that the company already has can create unique insights and much more valuable knowledge that is problematic for the competitors to get. These reasons all business lead to a lasting competitive benefit.

Strategic management is a assortment of decisions and activities that are taken by the business enterprise management to determine the long-term activities of the company. Basically tactical management has three elements (Houben et al. , 1999, p. 126), "the formulation of a strategy; the execution of a strategy; the control and evaluation of the strategy. Internal and external environment evaluation must be done before applying these periods. While analyzing of the internal and exterior environment will result in an overview of all opportunities and hazards and also weaknesses and strengths will be evaluated and these are SWOT evaluation results. If we want to define the internal and external surroundings, the external environment include the variables existing beyond your company, they are simply in the short-term and not under the control of the business and they're from the context in which company is out there and functions. The external parameters are divided as; immediate and indirect environment. The elements or groups are directly affected by the actions of the company are believed as the immediate environment (industry environment), such as; the shareholders, the federal government, the suppliers, the local authorities, the challengers, the clients, the creditors and the employee's organizations. The overall forces that contain a direct effect on the permanent decisions of the business are considered as indirect environment (macroenvironment) such as; financial, socio-cultural, technological, politics and juridical influences (Houben et al. , 1999, p. 126; Schermerhorn, 2006, pp. 87-88).

The parameters of the inner environment within the business belong to the business management of the company that does not have an impact in the short-term. These variables are the company structure, the business culture and the sources of the company. One of the three elements of strategic management was the formulation of a technique and it is a process for the introduction of long-term plans, to respond to environmental opportunities and risks effectively by considering the advantages and weaknesses of the business (Houben et al. , 1999, p. 126). Amount. 3. 1. 1 illustrates the SWOT analysis of advantages, weaknesses, opportunities and hazards.

Companies need to take some specific activities to identify and understand their competitive strengths and weaknesses; and the development of the competitive strategy depends upon building a global guide that considers the talents and weaknesses. The advantages and weaknesses can devote the efficient company domains, or can be a consequence of strange relationship between different areas. Furthermore, the advantages and the weaknesses must be examined at the various levels of the business such as; business, group, individual, company, product or market level (Houben et al. , 1999).

The current proper position forms a very important point of departure for the introduction of another strategy. It is very difficult to understand the current strategy if the formal planning system was previously absent. The mastering of your competition, the current strategic prospects, shows from the past, the market options and the marketplace environment provide us with understanding concerning information required for the indicator of talents and weaknesses. Where possible these talents and weaknesses should be displayed in objective conditions. It must be commented that a lot of talents concern the features of certain staff people or the resources accessible. A difference can accordingly be made based on the present product/market combinations. Hence, it is sensible to produce a distinction in line with the extent to which these talents and weaknesses are of a crucial nature. As regards the critical factors, an effort must be produced to type them based on advantages (Johnson et al. , 1989; Bartol et al. , 1991).

Good performances in a company are the results of correct interaction of the business management with its internal and/or exterior environment. To operate efficiently in this admiration, the company must concentrate its future objectives on its strengths, while averting tendencies related to the firms weaknesses. Responding to internal talents and weaknesses is therefore an important element of the strategic management process. But success can only just be achieved in this value to the scope that one knows the opportunities and risks resulting from the exterior environment. Mintzberg and Quinn (1991) discussed the popularity of the internal advantages and weaknesses, as well as external opportunities and hazards, takes place on the basis of a SWOT-analysis. Within the framework of this review, however, we chose to concentrate solely on the internal business environment. This therefore only concerns the recognition of talents and weaknesses. Companies must undertake specific actions to be able to distinguish their competitive talents and weaknesses. The talents and weaknesses are located in the functional company areas, or they might be a rsulting consequence abnormal connections between different areas. Furthermore, the talents and the weaknesses of an aspect are measured at different levels of the organization; this is at group level, at individual business level or at product or market level.

4. SWOT Examination in Practice

In this section we can overview the SWOT examination of organizational performance of small and medium enterprises in Egypt through promoting the human being factors in quality management systems. This evaluation has been done by the survey results (the answers in the analyzed questionnaire) were analyzed by the SWOT method in order to recognize the Egyptian processing SMEs' Talents, Weaknesses, Opportunities, and Threats, in order to create information about their results on organizational performance and also to determine when there is a need to support systems for the organization's development or a need for system improvement (Shobery et al. 2010).

This analysis the study team used as a guide for producing the QMS model with give attention to real human factors. Egyptian making SMEs (Small-Medium Companies) have much durability and weaknesses, and many opportunities and dangers which are produced from the business enterprise environment and also have effects overall organization. Advantages of SMEs were confirmed by the results of the questionnaire and also have backed, developed and promoted as part of the essential infrastructure needed to achieve the criteria of the business excellence tactics. Weaknesses indicated the problems and inadequate work systems which need to be solved and improved gradually to get a new and better infrastructure (Shobery et al. 2010).

In their research they figured it out that opportunities mainly increase the variety of international markets open to Egyptian developing SMEs. Threats are mainly generated through competitive situations from the international trading opponents and free trade areas (FTAs). There is an increase in the amount of overseas competitors almost all of which have an increased prospect of international trade than Egyptian organizations. Generally, strengths and opportunities affect the organization's performance in positive ways and also support the development of a QMS. On the other hand, the weaknesses and dangers have unwanted effects on the organizational performance, which hamper an effective implementation of a QMS. Effects of advantages, weaknesses, opportunities, and threats on the organizational performance in Egyptian production SMEs are presented in Table 1 and Amount 2.

Based on the findings, a organized timetable for the evaluation of strengths and weaknesses is something constantly gaining popularity. Companies must undertake specific actions to be able to tell apart their competitive strengths and weaknesses. Background shows this to be not particularly simple. Many companies just have hazy ideas of the source of certain competencies and the degree to that they possess them. The lack of a global company overview inhibits a specific picture being obtained. Despite these problems the introduction of a competitive strategy depends upon having a global overview in regards to talents and weaknesses.

5. Conclusion

By doing the SWOT analysis usually there are a few ready expected advantages such as, an impetus to investigate a predicament and develop appropriate strategies and techniques, a basis for assessing core functions and competences, the data for, and cultural key to, change, a stimulus to involvement in an organization experience.

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