Organizational analysis requires data and information about the internal environment. SWOT analysis refines this information by applying a general framework for understanding and managing the environment under which a company operates. SWOT analysis consists of evaluating a company's internal strengths and weaknesses and its external opportunities and threats. SWOT analysis underscores the basic point that strategy must produce a good fit between a firm's internal capabilities. Organization strengths and weaknesses are a matter of interpretation. Though, no definition may ever be complete, we would define strengths and weaknesses as follows:

Corporate Strengths: A strength is a strong point for the company i.e., something a company is good at doing or characteristic that gives it an important capability. Strength can be a skill, a competence, a valuable organizational resource or competitive capability or achievement that gives that company an advantage. It refers to competitive advantages and other distinct competencies which a company can exert in the market place. The management and performance of organization can also be analyzed with the help of ‘7-s' Framework, developed by McKinsey and co., a leading consulting firm of USA. According to this framework, strategy is only one element that determines the performance. The first three elements: strategy, structure and systems are consider the ‘hard' elements and the next four shared values, skills, staff and style are considered as the ‘soft' elements. With the help of this framework a competitive competitor analysis can provide deep insight on the strengths and weakness of the competitors.

Corporate Weakness: It refers to constraints or obstacles which check movement in certain desired direction, and may also inhibit organization in gaining a distinctive competitive advantage. A weakness is something the company does not have or does poorly or a condition that outs it at a disadvantageous positions. A weakness may or may not make an organization competitively vulnerable on how much it matters in the competition battle.

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Strategic Management Topics