SWOT Analysis - A Management Instrument

Abstract

The company's internal environment is made up of all the elements that ensure the achievement of its activity objective. It comes into action as a whole in which the components work together, conditioning each other, potentiating or annihilating each other as the case may be. Strengths are distinctive characteristics or skills that a company possesses at a higher level compared to other companies, especially the competition, which ensures a certain advantage over them. Strengths involve defining and measuring the areas in which the organization excels. Strengths are actually resources or capabilities that the organization has and that can be effectively used to achieve its objectives in terms of performance. The weak points represent activities that the company does not perform at the level of other competing companies or resources that it needs, but does not possess. Weaknesses represent a limitation, a mistake or a defect within the organization that prevents it from achieving its objectives. The external environment has several forms, the most important being: - the stable environment - it is specific to quiet periods, when the evolution of phenomena is slow and easily predictable, it raises few adaptation problems for the company and it is an environment that is increasingly rare in the contemporary economy.