SWOT ANALYSIS AS A CORPORATE STRATEGIC TOOL IN MANUFACTURING FIRMS

ABSTRACT

SWOT Analysis as a corporate strategic tool in Manufacturing Firms is a necessity to be considered for any firm who seek to desire distinctiveness and uniqueness in terms of its outputs when compared with those of its competitors. The purpose of this study is to investigate the impact of SWOT analysis as a corporate strategic tool in manufacturing firms. Other specific objectives are also to be accomplished by the study. The research adopted both experimental and empirical methodology; findings from respondents indicated that SWOT analysis as a corporate strategic tool is essential in manufacturing firms. Should objectively carryout SWOT analysis as a corporate strategic tool for the evaluation and analysis of a firm’s strength, weakness, opportunities and threats, failure to this will expose the firm to both internal and external environmental hazards and inability to total advantage of new opportunities.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Corporate strategic tool is the highest level of strategic management, their major concern is for the good health of the entire organization under their direction (Hill and Jones 1995).

The main focus at this level is to provide strategic direction to the entire organization. This corporate strategic role involve defining the organization mission and goals, determining the business the organization can be allocated to achieve the goals identified.

Arising from the turbulent and ever-competitive environment of business, the concept of corporate strategy has become very pertinent in business circles because according to Chandler (1962) in his “strategy and structure”, business is like war in one respect.

Consequently, Chandler (1962) defined strategy as the determination of the basic long-term goals and objectives of an enterprise, the adoption of courses of action and the allocation of resources necessary for carry out these goals.

An appropriate and a well design strategy will enable the firm to predict growth, achieve overall profitability, product distinctiveness and take advantage of opportunity.

In bringing the other ambit of this study to focus, SWOT analysis is a useful technique for understanding your strength and weaknesses and for identifying both the opportunities open to you and the threats the firm face.

In involves specifying the objectives of a firm of a project and identifying the internal and external factors that are favorable and unfavorable to achieve those objectives. (Humphrey, 1960).

The aim of analysis is to determine the key success factors in the industry, predict the of growth and to enhance the overall profitability of the company.

The process of this analysis which involves comparing strengths, weakness, opportunities and threats is conventionally referred to as SWOT analysis citing (Baadom 2003).

intended to examine the imperativeness of SWOT analysis, a firm cannot analysis, and a firm cannot analyze its internal and external business environment in relation to the available resources. The dimensions of this work include: objectives, decision making, the deployment of organizational resources and competition. With SWOT analysis, a firm can use its strength to overcome weaknesses, take advantage of opportunities and combat threats within the external environment with respect to appropriate and well designed strategy.

Hence, (Baadom, 2003) quoting (Hall, 1989:) sees SWOT as a corporate strategic tool as “the total expression of who a company is, that it does and how it does it”.

STATEMENT OF THE PROBLEM

Every corporate strategic tool of any firm is consequent to SWOT analysis. Without SWOT analysis, the objectives of the firm will be affected, irrational decision would be taken, its resources cannot be judiciously used and its level of competition cannot be accessed.

Lack SWOT analysis will result into:

• Inability to predict growth.
• Inability to enhance overall profitability.
• Poor product distinctiveness.
• Inability to take advantage of business opportunities.

OBJECTIVES OF THE STUDY

     To evaluate the relationship between SWOT analysis as a corporate strategic tool in manufacturing firms.

     To examine the relationship between objectives as a corporate strategic tool in manufacturing firms.

     To ascertain the relationship between decision making as a corporate strategic tool in manufacturing firms.

     To evaluate the relationship between resources as a corporate strategic tool in manufacturing firms.

     To examine competition as a corporate strategic tool relating to manufacturing firms.

A study of this nature is intended to achieve certain objectives at the end. On this premise, therefore, the main purpose of this study is to examine the relationship between SWOT analysis as a strategic tool in manufacturing firms. In the process, foregone objectives will also be achieved.

RESEARCH QUESTIONS

The essence of using research questions in modern research is to provide guidance for the researcher in achieving the desired objectives that must have informed the conduct of the study. The following question are thus posed to guide the researcher in the course of this study.

1. To what extent can strengths be considered as a corporate strategic tool related to manufacturing firm?
2. To what extent are weaknesses as corporate strategic tool related to manufacturing firm?
3. To what extent is opportunity as a corporate strategic tool related to manufacturing firm?
4. To what extent are threats as a strategic tool related to manufacturing firms?

RESEARCH HYPOTHESIS

In view of this, the following hypothesis will be formulated for the purpose of testing the perceived relationship between the variables.

H1: there is significant relationship strength as a corporate     strategic tool in manufacturing firms.

H1: there is significant relationship between weaknesses as a corporate strategic tool in manufacturing firms.

H1: there is significant relationship between opportunities as a corporate tool in manufacturing firms

H1:there is significant relationship between threats as a corporate tool in manufacturing firms

SIGNIFICANCE OF THE STUDY

It is intended that this study should provide other associates benefits. Generally, this research worth will:

• Help manufacturing firms to attaché importance to SWOT analysis as a strategic tool towards goal accomplishment.
• It will also help other organizations to know how the external environment could be influenced or adapted to using SWOT analysis.
• Accordingly, the study will also help organization on how it can develop appropriate strategy to overcome external forces.
• Importantly, it will also provide useful guide and information to other students that will carry out their studies in the future.

SCOPE AND DELIMITATION OF THE STUDY

This study is delimited to three keys areas namely;

• Content scope: the content scope is delimited to SWOT analysis as a corporate strategic tool in manufacturing firms. With other dimensions as objectives, decision making , performance and prospects.
• Geographical scope: this study is carried out in Rivers State Port Harcourt
• Study Unit Scope: the study unit scope involves a corporate level of analysis.

LIMITATIONS OF THE STUDY

In course of the research, the researcher was faced with some problems. Some of these problems include:

1. Information Gathering: the collection of information which is needed, persons concerned with releasing the information which is reluctant at first. This may be because of the protocol involved or authority not granted. The information which was later gathered were of little significance because it was diluted.
2. Finance: lack if finance resource to the researcher also serve as a hindrance on the study. The present economic situation in Nigeria and the cost involved in carrying out study.
3. Time: time was also a major constraints as the work was expected to be completed within one academic session.