Using Swot Analysis for Strategic Planning
The swot analysis is a good tool for strategic planning as it reviews the strengths, weaknesses, opportunities and threats. It brings out important factors and addresses them in an elaborate and inclusive manner. When facts are tabled, it becomes easier to initiate policies and decisions that can impact and solve economic issues that have been ailing the strategic planning and derailing benefits. Swot analysis gives basic materials that can be manipulated to suit any form of strategy. This will correct mistakes that may recur in future. Swot analysis reveals a true picture of the enterprise and its internal and external environmental challenges.
In order to come up with an effective strategy, the situation of Kfc should be analyzed by the Swot analysis. Swot will analyze both the external factors and internal factors and it will also include an evaluation on competitors which is the intended purpose of swot analysis (Keillor & Wilkinson, 2011).
The first step of swot analysis looks into the enterprise present enterprise activities and lists down both the limitations and the capabilities of the enterprise. It is the most important section as most crucial issues arise within the strength and weakness section .In order to study the strengths and weaknesses of an enterprise, the top management must be engaged in an open and free conversation. This dialogue will help to correctly identify weaknesses and strengths. If this is not possible, management can be listed as part of the weakness and they can be studied and necessary measures taken against them (Keillor & Wilkinson, 2011).
The Swot analysis is a good strategic plan in an area that is competitive because it allows one to plan in line with strengths, weaknesses, opportunities and threats in relation to other competitors. A Swot analysis gives an all dimensional perspective of the current and future economic situations that is in line with my job. (Olsen, 2013).
The strengths will permit Kfc to re-evaluate its advantages in the market sector. These advantages will form the basis of the company’s activities and strategic outline. The advantages are usually in line with the manner in which Kfc advertises itself. For example, Kfc has a very effective distributing network and good trading abilities with its suppliers, as strengths, therefore it can translate that strength to affordable costs for its consumers. Knowing strengths can be used to regulate weaknesses (Olsen, 2013).
After analyzing and knowing the strengths of Kfc, here is a great insight in knowing ones weaknesses. There are two approaches of correcting weaknesses. First they can be corrected if they hinder Kfc from achieving its objectives and strategy .Or, they can be corrected by altering the entire corporation if the business set up is responsible for the weakness. In my case, anything that will hinder kfc’s ability to achieve its vision statement is a weakness. For example, unreliable services from suppliers, old machineries and inadequate marketing efforts among the rest. Some elements that can be used to find weaknesses are: customers, prices and branding (Olsen, 2013).
Opportunities are critical if the corporation is to grow as it assists the corporation define methods through which it can progress. Constantly studying the market opportunities assists Kfc to grab any chance it gets in an upcoming market. Opportunities should be constantly assessed so as to give an overall upper hand over other competitive brands in the fast food industry. Through opportunities Kfc is able to raise new businesses, improve on its market shares and get access to new avenues of capital. Since opportunities are external factors, objectives should be clearly outlined to help in fishing out the opportunity. The emphasis should be on external factors that affect Kfc and what can be done to control the factors. External factors that cannot be controlled should be put under the PEST analysis that is political, economy, society and technology. What foods and services can we offer that can put us above the competition? Is there any new competitor in the food industry market? Are there other alternatives? These are some of the questions that one can use to discover new opportunities. The only intention of an opportunity is to move the company forward. It is also advisable to get outside assistance in area that are l not familiar. The opportunities found in the market should be ranked in terms their economic viability and their economic impact on the enterprise. (Olsen, 2013).
Analyzing threats will enable Kfc to protect itself from internal and external threats. Examples of threats are regulations, environment, emerging trends and technology. Taking a keen interest in uncontrollable external factors and controllable factors that have an influence on our fast food market is the most realistic approach of analyzing threats. Threats should be defined as any conditions in the market that can prevent attaining Kfc vision and mission now or in the future .Threats include competitive barriers and any alterations in the environment’s regulations. Some of the guidelines the team is supposed to use to identify threats are rise in costs, emerging players in the food industry, workforce’s weakness and money flow. By identifying threats and likely threats, I will have the ability to prepare in advance and reduce any effect it may have to Kfc (Sarsby, 2016).
Swot analysis is useful in strategic planning as it gives room for brain storming the problem by identifying both suitable factors and unsuitable factors which is vital in attaining the objectives. This approach supports competitive evaluation, business progress and development of fast food products. The simplicity of swot analysis requires mainly technical skills .Therefore the opinion of other members can be easily included into the strategy (Sarsby, 2016).
After the evidence and facts have been gathered, they can be discussed in teams and assist the team come up with elaborate strategies before settling on one specific strategy. A review of information the team has acquired about the enterprise from the swot analysis should also be discussed. This discussion will help to fit the information and piece it together to come up with solutions to challenges.
Swot analysis is the best method I can use for strategic planning and I expect the same of my team members. They should state the goals of the company and use them as a guideline to strategic planning. Strengths weakness, opportunities and threats are the four pillars upon which the planning should be based. This will help build an edge over our competitors.
References
Olsen, E. (2013). Strategic planning for dummies. Hoboken, N.J: John Wiley & Sons.
Sarsby, A. (2016). SWOT analysis.
Keillor, B. D., & Wilkinson, T. J. (2011). International business in the 21st century. Santa Barbara, Calif: Praeger.
