SWOT ANALYSIS - THE TOOL OF ORGANIZATIONS

(JPMNT) Journal of Process Management – New Technologies, InternationalVol. 6, No 4, 2018.SWOT ANALYSIS - THE TOOL OF ORGANIZATIONS STABILITY (KFC)AS A CASE STUDYSoran K. OmerDepartment of Administration and Accounting, Faculty of Humanities and Social Sciences,Koya University, Koya KOY45, Kurdistan Region – F.R. Iraq.soran.kakarash@koyauniversity.orgOriginal Scientific Paperdoi:10.5937/jouproman6-19188Abstract: The study is an effort to test the role ofSWOT analysis as a marketing implementationstrategy to provide stable condition fororganizations. In more detail SWOT analysis isindependent variable and organization stability isdependent variable. The methodologies depend onthe several problems by reviewing books andjournals, as well as tracking down the informationthe KFC (Kentucky fried chicken) as a global brandand chain food. The result shows that accurateinformation which is obtained to managers throughthe analyzing and classifying with the applicationof SWOT and PEST has the importance role tomake strategic plan and stable the organization for alonger time. To conclude, these strategies areplaying and leading the essential role theorganizations to conduct the best or at least optimalsolutions with time and location respectively.Key words: SWOT analysis, Organizations stabilityAbbreviations:KFC – Kentucky fried chicken.SWOTstrengths,opportunities and threats.weaknesses,PEST - Political, Economic, Socio-cultureand Technology factors.4p - Product, price, promotion andplacement1. IntroductionTo understand and create better conditionfor stability in an organization, the boardof any organization have to understand thematter of fact familiarize their purposesand goals of the organizations and matterof importance know or get their inform ofthe organizations vision and mission.One of the crucial steps is reviewing in anyorganization to obtain optimal performanceand organize their aims and goals; theyneed to check out or review internal andexternal factors regularly that ndgeneralimprovements.Theskillfulnessofmanagement is to study these external andinternal factors. Also evaluate and properlyapply these skills to sketch or distinguishthem from organizations or purely makesthem stand out.Organizations that have mission and visionwill make effort towards achieving theirshort term and long term missions andvisions. The goals and objectives are needto pursue strongly with high sense ofcommitment and passion in order to realizestability continuous progressing. It isworthy to annotation that the managing anorganization to confirm stability, in theother hands the particular strategicplanning process should be employed forthis purpose of this exercise SWOTanalysis which is part of strategic planninginstrument will be considered.27www.japmnt.com

(JPMNT) Journal of Process Management – New Technologies, InternationalVol. 6, No 4, 2018.1.1 Study problems and questionsOne of the most important threats which isconflicting the managers of organization iswhen they will make a decision theycannot make a right decision, especiallydecide through their products price andchoosing the place to take the out puts ofthe companies, at the recent days, there isan effective way or reality tool to sort thestrategic plan for the companies whichare called (SWOT Analysis), and dependon this position the study problem includesome of the questions which are this studyattempts to find out suitable and acceptablesolution, such as:Q1) What are the significant of SWOTanalysis in companies planning especiallyKentucky Fried Chicken (KFC)?Q2) How can the SWOT analysis stabilizethe organization for a longer time globallycompare to the others?Q3) Does organization needs to applySWOT Analysis for running their businessor is there an alternative?2. The concepts of SWOT analysis(definitions and visions) by therecent scholars.SWOT analysis is a technique which isused to analyze the strengths, weaknesses,opportunities and threats of business(Ommani, 2011) and it is one of the severalstrategic planning implements that are usedby businesses and the other organizations,on the other hands, all factors (Internal andexternal) are related to the effort, bothpositive and negative see fig (1) and it'sidentified and addressed. In order toachieve this task, the process involves fourareasofconsideration:strengths,weaknesses, opportunities, and threats. Itshould be noted that, when identifying andclassifying relevant factors, the focus is notjust on internal matters, but also externalcomponents that could influence thesuccess of the project. (Osita et al, 2014).Figure (1) SWOT matrix designed by(Author, 2018)In addition, “SWOT is the acronym for acompany’sstrengths,weaknesses,opportunities and threats. According to theadvocates of SWOT, strengths refer toinherent abilities to compete and growstrong. Weaknesses are the inherentdeficiencies that cripple growth andsurvival. Strengths and weakness aremostly internal. Opportunities are the goodchances and openings available for growth.Threats are externally wielded challenges,which might suppress inherent strengths,accelerateweaknessandstifleopportunities from being exploded. Tosucceed in any field, weaknesses must beovercome through strengths and threatsmust be transferred into opportunities. Thefour elements of a SWOT are analyzingundertaking as part of a wider strategicplanning.” (Kaczmarek, 2016). Also“SWOT refers an acronym of strength,weakness, opportunities and threats. Thefirsttwofactors(strengthsandweaknesses) are related to internalorganizational factors, while opportunitiesand threats cover a wider context orenvironment in which the entity operates.The first are likely to be under control ofthe organization but the latter one,although they are no less important whenlooking at the impact on the enterprise, arenot.” (Oreski, 2012).28www.japmnt.com

(JPMNT) Journal of Process Management – New Technologies, InternationalVol. 6, No 4, 2018.In addition, (Kaczmarek, 2016) focusedon that SWOT elements in more detail aredivided into internal and external elementswhich are clear in other words, the SWOTanalysis is based on two pillars: theinternal analysis and external analysis ofTable 1. Internal Factors. (Kaczmarek, 2016)the organization. The strengths andweaknesses belong to the internal field ofbusiness, and threats and opportunitiesbelong to the external environment. Thetables (1, 2) are clearly show explanationsbelow:Strength and description-Employees with in high level of Knowledge and capability.Good foundation and basic for team work and delegation of responsibilities.High engagement external services.Strong leadership of top management.Attractive maintenance department for new employees.Weaknesses description-Number of employees with low willingness for personal development.Too much focus on “daily activities and problems” and low planned maintenance andinnovation.Dealing with high numbers of priorities.High fluctuation of production planning.Ineffective and unclear communication.Lack of appropriate rewarding system.Table 1. External factors. (Kaczmarek, 2016)Opportunities description-Continuous personal development.Advanced technology.Long term relationships with supplier.Friendly and safe workplace.Standardized equipment.Lean organization.Further new diagnostic method development.Supporting software tools for activitiesThreats description-Lack of availability operators for clean, inspect, lubricate and tighten, and preventivemaintenance.Centralization of decision making investments and modifications.Limited value of stock spare parts.No time for preventive maintenance (only weekend).Decrease of maintenance budget.Lower availability external services.Decrease on employee's engagement and motivation.Higher dependency on external services.Legal constraints.Aging machinery and installations.Aging employees.Decrease of quality and life time of components29www.japmnt.com

(JPMNT) Journal of Process Management – New Technologies, InternationalVol. 6, No 4, 2018.But its difference, according to Eggertsviewpoint (2012) with service sector whichis focused on that SWOT analysis of bankis here:1- StrengthIt includes good financial fundamentals,good domestic brand recognition, strongand growing presence, loyal customer,experienced executive management2- WeaknessesFocused on eroding market position,presence performing below expectations,heavy reliance on wholesale funds, highcost brick and mortar infrastructure.3- OpportunitiesExport of image to other markets, globalgrowing wealth, well positioned to benefitfrom improving conditions.4- ThreatsThe fourth element is threats which isinclude increasing global regulation andforeign target markets2.1 The Advantage and disadvantages ofSWOT analysis(Oreski, 2012) emphasizes that the SWOTanalysis is simple and useful for organizinginformation, especially for preliminaryresearch, on the other hand, it also as abasis for more applied and theoreticalwork. One of the advantages but at thesame time disadvantage of SWOT analysisis the fact that it is the method of valuation.The emphasis on the evaluation of thework seems more applied than theoretical.SWOT has proved very useful inunderstanding the environment of theorganization and, consequently, in thestrategic planning of their growth anddevelopment.and SWOT is use to assess abusiness or a proposition. This shouldn’tbe restricted to a business you own, butalso to use it for your competitor’sbusiness. (Fine, 2009).On the other hands the “SWOT analysiswas used simply because the first contactwith the firm made it clear that the salesmanager had no idea of how to structurethe complex situation. As the authors seeit, there were not real alternatives toSWOT. With only one participatingperson, a rather restricted time frame (forinterviews and the number of interviewsthat could be expected), SWOT seemed asthe best option. As mentioned earlier, theapplication of SWOT was made throughseveral meetings allowing the salesmanager to reflect on both the issues andthe situation and on the methodologicalapproach for structuring the problem. Thetime between meetings made up a moreproductive and interactive analysis. Bystarting out discussions one day, the salesmanager became more attentive to theSWOT factors discussed, and at nextmeeting he could always add on newrelevant issues. However, it was also clearthat the analysis could not have beenappliedwithoutthetechnologicalknowledge of the facilitator. Application ofSWOT requires a good information andsound knowledge base to succeed. Thesales manager did not have sufficientknowledge especially about the externalSWOT factors, and the direct engagementof the facilitator as an expert was arequirement for carrying out the analysis.In terms of using SWOT with anillustrative purpose, it is the authors’perception that the manager did get somuch insight into SWOT methodologicallythat he could be able to apply it himself ortake on a facilitator role.” (Vega, 2004).“Typically used at the enterprise level, butcan be applied at higher levels, forexample, in strategic plan in tourism of thedestination. Strategic planning for thedestination could be a difficult task as thereare many possible strategies derived fromthe assessment of environmental factors.But the decision without a systematicapproach would result in less effectivestrategies.” (Oreski, 2012). As well as,SWOT analysis is used commonly in firmsand classrooms.30www.japmnt.com