Strategic Plan, Part Ii: Swott Analysis

Strategic Plan, Part II: SWOTT Analysis

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University of Phoenix

BUS/475

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Strategic Plan, Part II: SWOTT Analysis

Once the conceptualization of the business has been complete, an analysis needs to be organized to ensure that the business strategy is on track. Because the restaurant industry is saturated with fast food chains with dine-in or take-out options, along with independent or chain restaurants serving all different types of cuisine, a constant and frequent analysis has to be conducted to ensure that their business strategy is on track and healthy. This will allow the organization to analyze their resources and competitive advantage. If the analysis shows them to be at a disadvantage it will allow the organization time to stop and make any necessary adjustments.

External Factors

The factors and trends that affect an organizations business strategy and direction can consist of both internal and external factors. The external factors are typically divided up into three different categories; remote environment, industry environment, and operating environment. Each category contains certain components which may display a relationship that can show an opportunity or threat. Remote environment factors consist of economic, social, political, technological, and ecological factors, of which the organization is not responsible for causing (Pearce & Robinson, 2009). The industry environment factors consist of entry barriers, supplier and buyer power, substitute availability, and competitive rivalry.

Operating environment “also called the competitive or task environment, comprises factors in the competitive situation that affect a firm’s success in acquiring needed resources or in profitably marketing its goods and services. The operating environment is typically much more subject to the firm’s influence or control than the remote environment’ (Pearce & Robinson, 2009, p. ). This operating environment contains...