Question

Take the opportunity to describe the basic elements of the SWOT analysis. Then, review the concepts of Value Chain Analysis, and briefly mention or discuss its applications. Identify its weaknesses and strengths (pros and cons of this tool). Find compatibility or discrepancies between the two tools that may enhance or limit their integrated application.  What other analytical tool would you suggest to use in integrating information technology into the overall strategic plan of the organization or business.

Answer 1

SWOT analysis:

SWOT is helping to find the strength and weakness of the business organization. Also it helps to identify the Opportunities and threats for the business. This was an important and effective tool used for the business development.

Basic Elements of SWOT:

Strength

Weakness

Opportunities

Threats

Strength

Every business used to focus on the positive factors that will be useful for the Business development .Every organization used to identify the organization strength and individual advantage to succeed in their business .Beneficial factors such as product and service, financial growth, organizational assets will be analyzed from the SWOT analysis.

Weakness

First need to understand the Where business going wrong .Weakness is the negative factor that has to be eliminated ontime.Weakness can be controlled in the business. Weakness hazards need to analyzed and it has to be eliminated or minimized to taste the business success.

Opportunities

It is an external factor that is used to identify the possible options for the business growth. It helps to earn more profit in the business environment. By evaluating the right opportunities organizations can earn the profits

Threats

There are certain external factors that will be harmful for the business. External business threats. in social, political, environmental, technological, Legal system need to analyzed and effective solution need to be implemented for the business growth.

Value chain analysis:

A technique is used to measure the customer perceived value in the business organization is called value chain analysis. It used to evaluate the organization advantages and disadvantages in the business market. Also it helps to identify the value of product in the business market.

                                                               

Primary activities of value chain analysis are listed below

Ø Inward Logistics

Ø Outward logistics

Ø Marketing and sales

Ø Business operation

Ø Customer service

Ø Technological growth

Ø Human resource management

Advantages:

Ø Value chain analysis helps to boost the business growth

Ø It helps to identify the market value

Ø It helps to analyze the customer requirements

Ø Some of the key activities help to gain competitive advantages

Disadvantages:      

Ø It does poor job in linking the business activities

Ø Sometimes organization overall goal get impacted

Ø Mostly value chain method used in manufacturing sectors not in all business areas