SWOT Analysis and Table Essay Example | Topics and Well Written Essays - 1500 words

SWOT Analysis and Table - Essay Example Strengths in this market environment is an internal organizational quality that enables the business to survive and compete against other similar stores, e.g. good positive cash flow. A weakness is also an internal organizational problem that affects it negatively while giving an opportunity to rivals such as accumulating bad debt. An opportunity comes basically from the external environment such as a rival’s inability to meet demand. Finally a threat is also a basically external matter, e.g. a rival’s sales promotion campaigns. SWOT analysis enables the organization to plan and execute its programmes of action with a degree of certainty about the external environmental factors that influence its own existence. A baby store would necessarily be faced with a number of external economic influences such as the government policies on taxation, interest rates, inflation, money supply, balance of payments, Gross Domestic Product, National Income, foreign governments’ protectionist policies and so on. Imported baby-care products would be more expensive if the government imposes a higher import tariff on them. The government might impose higher corporation taxes in order to control inflation. This would affect the business in a number of ways. For instance a baby store which depends much more on imported products would find that higher tariffs to be a threat to its survival, especially in the long run. It might find it difficult to reduce prices to match its rivals’ prices. Rivals might be selling domestic products that are not subject to taxes except some GST or BTT. This gives them an advantage over rivals that sell imported products. Higher sales taxes imposed on baby care products by the government in order to control inflation also could affect them. Baby stores are affected by such taxes because now people buy less (McIntyre-Mills, 2004, p.373). Next