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Strengths and weaknesses of SWOT analysis

Discuss about the Performance in Dysfunctional Competitive Environment.

SWOT is an acronym that is used for the framework that helps in the analysis of the strengths, the weaknesses, the opportunities and the threats that are related to the planning of the strategies for organizations. SWOT analysis is considered to be a well-known tool which is used for the purpose of auditing and analysing the strategic position of the organizations in the market. The major purpose of this tool is to identify the various strategies which can create a business model which is firm specific in nature. This is considered to be the foundation of evaluating the limitations and the potential and the probable threats and opportunities from the external environment of the organization (Liu and Atuahene-Gima 2018). The study of the environment of the organization is important for predicting or forecasting the changes that occur in the trends in the market.

Strengths of SWOT analysis – The SWOT analysis framework can be applied to an organization, a team or an individual. The analysis further supports the various objectives of a project. This method can also be used to evaluate a particular brand or product, a partnership or acquisition, or the outsourcing of the various business functions. The SWOT framework can be used for the brainstorming sessions which are conducted to analyse the internal and the external factors that affect the operations of an organization. The marketing objectives that have been set by an organization can be analysed with the help of SWOT framework. The SWOT analysis can be performed by anyone who does not even have knowledge regarding the various processes of the organizations (Felix, Rauschnabel and Hinsch 2017). The use of this framework does not require specific training for the employees. The costs that are related to the SWOT process are also quite less and this is a major advantage of this framework.

Weaknesses of SWOT analysis – The SWOT framework provides four different lists that are related to the strengths, weaknesses, opportunities and threats of the organizations which are analysed. However, the significance related to each of the factors is not provided by the model. Any one factor can be strength for one organization or a weakness of another. The one-dimensional analysis that is performed with the help of SWOT framework is a major disadvantage that is related to this model. The collection of the data and its analysis is subjective in nature and it is not always reliable for all types of organizations in the industry. The individuals who collect the data influence the decisions that are made with the help of this framework (Frow et al. 2015).

Strengths and weaknesses of PESTLE analysis

The PESTLE analysis tool is used by the marketers of the organizations to analyse and then monitor macro-environmental factors which affect the organizational operations. The strategies related to marketing and the various marketing decisions can be taken with the help of the PESTLE framework. The macro-environmental factors that affect the operations of an organization are, the political factors, the economic factors, the social factors, technological factors, legal factors and the environmental factors. This framework helps the marketers to get a view of the environment where the organization is operating or is planning to start its operations (Jarzabkowski and Kaplan 2015).

Strengths – The major advantage or strength of the PESTLE model is the cost effectiveness. The approach related to this model is quite simple and straightforward in nature. The PESTLE analysis process provides a deeper understanding of the external environment of operations of an organization. This process helps in understanding the various influential and different factors that affect an organization. The awareness of the organization related to the environment of its operations is also created successfully with the help of this analysis. The opportunities that are available in the market can also be analysed with the help of PESTLE analysis framework. This helps the marketers in the organizations to formulate specific strategies based on the marketing environment (Kozlenkova, Samaha and Palmatier 2014).

Weaknesses – The main disadvantage that is related to PESTLE analysis is the constant that is taking place in the marketing environment. The management needs to review and then revise the study that is conducted with the help of PESTLE framework. The process of PESTLE analysis involves many different individuals from the various organizations. The knowledge related to various domains are required for the purpose of analysing the effects of the external factors on the organization (Heding, Knudtzen and Bjerre 2015). The collection of external data also requires a lot of effort and time. The access that may be provided to a particular organization related to data of its competitors is also quite limited. The analysis is subjective in nature and is further influenced by the personal judgement and opinions of the individuals who conduct the research. The judgement of different related to different situations affect the process of PESTLE analysis.

The Business Model Canvas is a lean start-up or strategic management template that is used for the development of new businesses or documenting the existing models of business. This is a visual chart which consists of elements which describe the value proposition if the products or the organizations, the customers, the infrastructure and the finances. This model further assists the organizations to align their activities (Lin and Wu 2014). The major aspects of the business that are a part of the business model canvas are, key partners, key activities, value propositions, customer relationships, customer segments, key resources, channels of marketing, cost structure and the revenue streams. The analysis of these aspects with the help of the visual chart helps the marketers to formulate suitable strategies for the future operations of the organizations.

Strengths and weaknesses of Business Model Canvas

Strengths – The major strength of the business model canvas is that the model helps in structuring the decisions that are to be taken by the marketers of the organization. The nine building blocks helps in the brainstorming of various ideas that can further help in shaping the ideas. The formation of business model canvas is not time consuming in nature which further supports the faster decision making by the marketers. This canvas can help the strategists to easily formulate their ideas make a wise choice between the good ideas and the bad ones (West, Ford and Ibrahim 2015). The business model canvas is quite simple in nature and helps in driving value for the business. This further helps the marketers to formulate strategies and reach the customers as fast as possible.

Weaknesses – The main weakness of the business model canvas lies in the ways by which it is used in the various organizations. The business model canvas is used as a checklist by the various business organizations. This further leaves out the major considerations that are related to the strategy of the organizations. This model is also sometimes used without embedding it into the other corresponding methods. The canvas of the business model can be used as a checklist at the start of the business. However, in the later stages it needs to be used in a such manner so that the strategists can take important decisions related to the marketing activities of the organization (Beck, Chapman and Palmatier 2015). The canvas is nor useful for the business or the strategists if it is used without the conjunction with the other methods of business analysis. The canvas also needs to be kept under constant check and should be updated on a regular basis. The strategists also need to create various different business model canvasses for the different options related marketing. The regular analysis of the canvas is important so that it can remain valid for the strategists or the marketers of the organization. The canvas is only able to provide an overview of the business process. In-depth analysis is not possible with the help of this model (Homburg, Jozi? and Kuehnl 2017).

The organizations in the modern business environment go through many small changes on a regular basis. However, at some point of time major changes are required in the organizational environment. These changes include reorganization of companies and implementing a new software in the organizational processes. The ability that is possessed by the leaders to respond to changes occurring in the entire systems and processes of the organization. The responsibility that is taken by the leaders regarding the changes occurring in the systems will affect the success of the organization. The leaders of an organization are major parts of the entire change related process (Helfat and Martin 2015). The employees also expect that the leaders will direct the changes that are taking place in the organizational environment. The process of change without leadership can lead to intense chaos and confusion within the organization. The lack of proper leadership can cause negativity among the employees and instability is caused within the organization. The leaders are mainly responsible for demonstrating the needs related to change by establishing common goals. Communication is the most important function of effective leadership and this further helps in building trust among the employees (Bratton and Gold 2017).

The Importance of Effective Leadership in Change Management Processes

According to, Day, Gu and Sammons (2016) the leaders need to listen to the concerns of the employees and take entire charge of the change that is about to occur. The solid relationships among leaders and employees can decrease the resistance that can occur in the change process. The employees of the various organizations tend to provide resistance to the major changes that can take place. This resistance can be managed with the help of effective leadership. The leaders can manage the fears of the employees that are related to effects of changes on the organization.

As argued by, Dinh et al. (2014), the effective process of leadership can help in the collaboration of various departments by ensuring that the processes, preparation and the proper training is aligned with the goals. The effective leaders tend to reduce the conflicts that can occur between the departments and between the employees as well. The leaders also need to understand the response that is provided by the employees to the change process. The leaders who have open relationships with the employees can get their responses easily. Leadership is the most important function of the organization which helps in maximizing the efficiency and achieving the goals of the organization.

As discussed by, Van der Voet (2014), the leadership in an organization helps in initiating the entire change related process. The leaders are also able to motivate the employees with the help of economic or non-economic rewards. This helps them in getting the jobs done by employees. The effective leaders can also provide guidance to the employees. The guidance is mainly related to the instructions that are provided to the employees by the leaders. The leaders can also provide confidence to the employees about the various changes that take place in the organization based on the external environmental changes. The leaders play an important role in boosting the confidence of the employees towards their work process and try to get them into confidence as well. The effective work related environment can be created in the organization with the help of the stable growth of the employees. This growth however depends on the effectiveness of the leadership process. The coordination between the employees and the leaders also depend on the effective leadership style of the various leaders (Bolden 2016).

The modern business organizations have realised that they need to operate in a period of rapid changing environments. This further makes it necessary for the organizations to make changes in their processes. The leaders in the modern organizations need to acknowledge the changes and further try to implement these changes in the various organizational processes. The organizations need to go through a successful process of change so that sustain in the changing business environment. The successful management of change mainly requires huge levels of commitment from the managers and the executives. The changes can take place in the specific departments or the organization as a whole. The leaders or the executives need to take part in the change process so that they can direct the employees successfully through the process (Schnackenberg and Tomlinson 2016).

The managers of the organizations play an important role in the . The managers who are effective change leaders need to perform various tasks in the change management process. The five major roles that are played by the change leaders are, communicator, liaison, advocate, resistance manager and coach. The managers can communicate the employees about the change that is taking place in the organizations. The leader can build awareness regarding the change process among the employees. The managers of effective change leaders act as a source of feedback to the various employees of the organization. The managers need to therefore actively become a part of the change process and lead the employees (Mitchell et al. 2015).

The effective change leaders are able to successfully influence the perspectives of the various employees. The managers need to strong advocates for change so that the employees follow them. The effective leaders are committed to the change that is taking place and will be able to build desire among the employees. The resistance that is provided by the employees towards the change process can be successfully by the effective leaders. This will further help in the easy implementation of change. The effective leader is a thoughtful resistance manager as well. The thoughtful nature of leaders helps them in determining the major causes that are related to the resistance that is provided to the change. This will enable the leaders to take care of the concerns and try to mitigate the effects of resistance. The effective change leaders act as mentors or coaches to the employees so that they gain the required knowledge about the change related process (Hornstein 2015). The employees or the members of the team require sufficient knowledge to effectively implement the change in the organization. The leaders in this case act as coaches to the employees and become building blocks in implementing changes.

The organizational changes that occur in the changing macro-environment can be managed successfully by the effective leaders. The leaders are not only a simple part of the change process, they further lead and the manage the change process. The resistance that is generated by the employees regarding the changes are also managed by the effective leaders. The growth opportunities of the organization are identified by the effective leaders and they lead the change process. The effectiveness and efficiency of the leaders is therefore important for the successful management of changes. The successful growth and expansion of the organization is also dependent on the leaders and the leadership style that they depict. The leaders are also responsible to motivate the employees so that they achieve the goals that are related to the growth of the organization (Ghasabeh, Soosay and Reaiche 2015). The modern organizations and their processes are heavily dependent on the effectiveness of the leaders. The leadership style of the organization decides the future of change implementation. The changes that take place in the leaders of the companies also affect the processes of the organizations. For example, the change of leadership style that taken place in Apple after the demise of Steve Jobs has changed the work processes and the leadership style as well. Steve Jobs was considered to be a transactional leader and on the other hand Tim Cook the present CEO of Apple depicts the transformational style of leadership. This is a major change that has been implemented in the organization and the leaders have positively affected the change process.


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