Thank you for working with me

Running head: STRATEGIC PLAN PART II SWOTT ANALYSIS
Strategic Plan Part II SWOTT Analysis

(Author’s name)

(Institutional Affiliation)

1

STRATEGIC PLAN PART II SWOTT ANALYSIS

2

Strategic Plan Part II SWOTT Analysis
A business technique used to understand strength and weaknesses of your business and the
opportunities and threats it faces in a business environment is called SWOTT analysis. According
to Kerimov, SWOTT analysis summarizes the main concerns from the business setting and the
planned competence of the organization that is most likely has an influence on strategy
development. Therefore, opportunities and threats are forces from outside the business they form
the external business environment. On the other hand, strength and weakness are forces within the
business they are the internal business environment (Wheelen & Hunger, 2004).
The external and internal business environment factor have an impact on the success and failure
of any business. Business has control over the internal business environment while it has no
control over the external factors. Despite the fact that the business cannot control the external
environment factors, it must be able to anticipate and adjust these factors to keep their
organization in the right direction ("Internal and External Environment Factors that Influences
Organizational Decision making", 2018). To discuss SWOTT analysis in relation to XYZ Company

which mainly deals with the retail business sector, also explain internal and external forces and
trends. The external forces include; industry global, changes, innovation, social, technological,
environmental, economic, and competitive analysis. The forces are discussed below in details
and their impacts on the business:
Economic
The economic environment is collective of the nature of the economic system of the nation,
business cycles, and the socio-economic infrastructure. Business premises cannot operate in a
vacuum but in an economic system. The normal economic condition will have an impact on the

STRATEGIC PLAN PART II SWOTT ANALYSIS

3

purchasing patterns of the citizen within a country. An upward trend in interest rate brought by
inflation will lower consumption of non-essential goods and services. When the interest rate is
high, individuals are not borrowing money from a financial institution and the business will pay
more when borrowing a loan. Companies tend to be selective about people they hire due to high
unemployment rate thus the consumer purchasing power is reduced as only a few people are
working (Patrakhina, 2015).
Technology
The method of converting resources into finished product or services, therefore, the technology
embraced by the businesses determines the type and quality of goods and services to be produced.
It has been changing rapidly over the past years and is an external factor that continuously exerts
pressure on the business. The technology influences the business in terms of investment in the
technology, constant application of technology. The business must adjust quickly to new
technological change, so as to reduce the risk losing market segment.
Legal or Regularity
A favourable government rules and regulation governing business operations is vital to the
economy. Taxation by-laws are changes is common that at times taxation rate changes occur
overnight with little or no notice to the business. Apart from taxation rules, other regulations that
affect business operations include; industrial relations environmental laws, consumer protection,
and workplace health and safety.

STRATEGIC PLAN PART II SWOTT ANALYSIS

4

Social
The social factor of a community in a country regulates the value system of the society which
intern influence the operations of the business. Social factor such as costs structure customs and
convections, the mobility of labour among others have an impact on the business. Social factors
determine the individual working culture of employed groups.
Competitive analysis
Competition over the market share has become stiff by the growing number of upcoming
industries. The Competitors come up with new product line new marketing strategies and fair
prices of goods and services. Therefore as a business manager, you should be aware of what other
competitors doing to have a large market share.
Global
Global is the amalgamation of the economy of a country within the world economy, this implies
free movement of goods and services, capital, labour and technology across national boundaries.
Organizations which have gone global enjoy ...