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The SWOT technique is one of the most commonly used strategic planning techniques in business, however it is also one of the most misunderstood techniques. A SWOT analysis will help you to summarise your understanding of the major issues identified in your strategic analysis with a focus on your three key strategic environments; internal, industry and macro.
The SWOT methodology is also often used in decision making, as it brings a structured analysis that can be applied to the various decision options which effectively removes subjectivity and emotion from the decision process. The focus of the SWOT (language) will be different in different industries and will also depend on where the company is in its Business Life Cycle.

In today’s highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper.
After detailed analysis of the threats, opportunities, strength and weaknesses, a company needs to consider how to use the external environment to their strategic advantage, through the identification of alternative strategic options. When a company undertakes a SWOT analysis is it important that their actions are monitored to see HOW, WHEN, WHY, WHERE they implemented strategic initiatives to ensure the SWOT proposition was addressed.
HSC Business StudiesThis blog is dedicated to support students undertaking the New South Wales, BOS, Business Studies Course for 2013.

Identifying PEST influences is a useful way of summarising the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences.

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