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Strategy formulation requires an objective analysis of the factors that characterize the company’s strategic situation. There are a number of techniques that can be used to create a quick strategic overview of the company. SWOT analysis is an example of such a technique. SWOT analysis is based on the assumption that an effective strategy derives from a sound ‘fit’ between the company’s internal resources (Strengths and Weaknesses) and its external situation (Opportunities and Threats). A good fit maximizes the company’s strengths and opportunities and minimizes its weaknesses and threats.

For example,

 

Positive

Negative

Internal Factors

Strengths

  • Technological Skills
  • Leading Brands
  • Distribution Channels
  • Customer Loyalty
  • Customer Relationship
  • Production Quality
  • Management

Weaknesses

  • Absence of important skills
  • Weak Brands
  • Poor Access to Distribution
  • Low Customer Retention
  • Unreliable Product/Service
  • Management

External Factors

Opportunities

  • Changing Customer Tastes
  • Change in Geographic Markets
  • Technological Advances
  • Changes in Government Policy
  • Lower Personal Taxes
  • Change in Demographic Structure
  • New Distribution Channel

Threats

  • Changing Customer Tastes
  • Closing Geographical Markets
  • Technological Advances
  • Changes in Government Policy
  • Tax Increase
  • Change in Demographic Structure
  • New Distribution Channel

With the information above and other research, conduct a SWOT analysis on the company you selected. Write a narrative describing the analysis you conducted.

The company I chose is ServiceMaster. 

http://www.servicemaster.com/

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