1- How does the external environment scan, the internal environment scan (i.e., the strengths and weaknesses from the SWOT analysis), and Porter’s industry analysis help inform the managerial decision-making process.
The SWOT monitors a company’s internal environment through the analysis of the Strengths and Weaknesses, and external environment through the Opportunities, and Threats. The SWOT is important in identifying the core competencies and in giving information that influence strategic planning. (Marketing Strategy)
The internal scan informs the marketers of the availability and lack of the organization resources (tangible, intangible, and human) and capabilities (efficiency, effectiveness, expertise, control, etc.). The strengths indicate the advantages and of the firm in meeting the company’s objectives and customers’ needs. The weaknesses refer to the limitations the organization encounter in executing its mission and the deficiencies in its accomplishments. The internal scan helps marketers to build and enforce the organization strengths and reverse its weaknesses. (Marketing and its Environments, p 44)
The external scan informs marketers of the opportunities and threats. The opportunities refer to the profit of the organization if performing in favorable conditions. The threats indicate the obstacles that may keep the company from reaching its objectives. The external environment is independent from the firm. The external scan involves customer, competitive, and market analyses. This environment is influenced by the technological, governmental, economic, cultural, demographic, and socio-cultural conditions. Marketers strive to maximize the organization opportunities and overcome its threats to enhance the customer satisfaction. (Wheelen, Hunger P107)
The SWOT analysis allows the marketers to observe the organization performance (past and expected) and to have reliable information that helps in synchronizing...