‘SWOT

Strategy formulation requires an objective analysis of the factors that characterize the company’s strategic situation. There are a number of techniques that can be used to create a quick strategic overview of the company. SWOT analysis is an example of such a technique. SWOT analysis is based on the assumption that an effective strategy derives from a sound Ã¢â‚¬Ëœfit’ between the company’s internal resources (Strengths and Weaknesses) and its external situation (Opportunities and Threats). A good fit maximizes the company’s strengths and opportunities and minimizes its weaknesses and threats.

For example,

Positive

Negative

Internal Factors

Strengths

Technological Skills
Leading Brands
Distribution Channels
Customer Loyalty
Customer Relationship
Production Quality
Management

Weaknesses

Absence of important skills
Weak Brands
Poor Access to Distribution
Low Customer Retention
Unreliable Product/Service
Management

External Factors

Opportunities

Changing Customer Tastes
Change in Geographic Markets
Technological Advances
Changes in Government Policy
Lower Personal Taxes
Change in Demographic Structure
New Distribution Channel

Threats

Changing Customer Tastes
Closing Geographical Markets
Technological Advances
Changes in Government Policy
Tax Increase
Change in Demographic Structure
New Distribution Channel

With the information above and other research, conduct a SWOT analysis on the company you selected. Write a narrative describing the analysis you conducted.

The company I chose is ServiceMaster.

http://www.servicemaster.com/

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