{"id":3022,"date":"2023-02-19T16:11:19","date_gmt":"2023-02-19T16:11:19","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/planning\/"},"modified":"2025-05-22T15:57:54","modified_gmt":"2025-05-22T15:57:54","slug":"planning","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/planning\/","title":{"raw":"Learn It 9.2.2: Planning","rendered":"Learn It 9.2.2: Planning"},"content":{"raw":"

SWOT Analysis<\/strong><\/h2>\r\n

One of the key planning tools managers have at their disposal is the situation analysis, or SWOT analysis<\/strong>. SWOT stands for strengths, weaknesses, opportunities, and threats. Conducting such an analysis provides a means of projecting expectations, anticipating problems, and guiding decision making. A SWOT analysis is an examination of the internal and external factors that impact the organization and its plans.<\/p>\r\n\r\n[caption id=\"attachment_8862\" align=\"alignnone\" width=\"858\"]\"The Figure 1. SWOT Analysis[\/caption]\r\n\r\n

External factors include opportunities and threats that are outside of the organization. These are factors that the company may be able to influence\u2014or at least anticipate\u2014but not fully control. Examples of external factors are technology innovations and changes, competition, economic trends, government policies and regulations, legal judgments, and social trends.<\/p>\r\n

The internal factors include strengths and weaknesses within the organization currently. Examples of internal factors are financial resources, technical resources and capabilities, human resources, and product lines. Since the company has the most\u00a0control over internal factors, it can develop strategies and objectives to exploit strengths and address weaknesses.<\/p>\r\n

Why SWOT Matters<\/h3>\r\n

The benefit of a SWOT analysis is that it gives managers a clear\u00a0picture of the \u201csituation\u201d in which it operates and helps them develop realistic plans. Managers must continually scan\u00a0the internal and external business environment for signs\u00a0of change that may require alterations to their\u00a0plans. The organization's strengths and weaknesses evolve over time, and new threats and opportunities can appear out of the blue. Ignoring signals that technology, consumer demands, resource availability, or legal requirements are changing can leave the business in an inferior position relative to the competition and can\u00a0very well mean\u00a0the end of the business. For this reason, effective managers should use SWOT analysis as a tool to inform decision making and planning on a regular\u00a0basis.<\/p>\r\n

You can see how pervasive planning is within a business and that plans can range from the broad and general (as with the strategic plan, for example) to the narrow and specific (as with operational plans). Each type of plan is important to the overall success of an organization. Furthermore, planning is crucial to fulfilling the other functions of management. Without plans, effective organizing, leading, and controlling won\u2019t happen. Failure to plan\u2014or postponing it\u2014can be a real liability for labor-oriented, hands-on managers.<\/span><\/p>\r\n

[ohm2_question height=\"350\"]6412[\/ohm2_question]<\/section>","rendered":"

SWOT Analysis<\/strong><\/h2>\n

One of the key planning tools managers have at their disposal is the situation analysis, or SWOT analysis<\/strong>. SWOT stands for strengths, weaknesses, opportunities, and threats. Conducting such an analysis provides a means of projecting expectations, anticipating problems, and guiding decision making. A SWOT analysis is an examination of the internal and external factors that impact the organization and its plans.<\/p>\n

\"The
Figure 1. SWOT Analysis<\/figcaption><\/figure>\n

External factors include opportunities and threats that are outside of the organization. These are factors that the company may be able to influence\u2014or at least anticipate\u2014but not fully control. Examples of external factors are technology innovations and changes, competition, economic trends, government policies and regulations, legal judgments, and social trends.<\/p>\n

The internal factors include strengths and weaknesses within the organization currently. Examples of internal factors are financial resources, technical resources and capabilities, human resources, and product lines. Since the company has the most\u00a0control over internal factors, it can develop strategies and objectives to exploit strengths and address weaknesses.<\/p>\n

Why SWOT Matters<\/h3>\n

The benefit of a SWOT analysis is that it gives managers a clear\u00a0picture of the \u201csituation\u201d in which it operates and helps them develop realistic plans. Managers must continually scan\u00a0the internal and external business environment for signs\u00a0of change that may require alterations to their\u00a0plans. The organization’s strengths and weaknesses evolve over time, and new threats and opportunities can appear out of the blue. Ignoring signals that technology, consumer demands, resource availability, or legal requirements are changing can leave the business in an inferior position relative to the competition and can\u00a0very well mean\u00a0the end of the business. For this reason, effective managers should use SWOT analysis as a tool to inform decision making and planning on a regular\u00a0basis.<\/p>\n

You can see how pervasive planning is within a business and that plans can range from the broad and general (as with the strategic plan, for example) to the narrow and specific (as with operational plans). Each type of plan is important to the overall success of an organization. Furthermore, planning is crucial to fulfilling the other functions of management. Without plans, effective organizing, leading, and controlling won\u2019t happen. Failure to plan\u2014or postponing it\u2014can be a real liability for labor-oriented, hands-on managers.<\/span><\/p>\n