Strategic Management

Strategic Management

Chapter 3.3
The major purpose of SWOT analysis is to establish the internal and external variables or factors that are crucial to attaining the goal. The technique classifies major pieces of information into two main classes. The first is the internal factors represented by strengths and weaknesses that are internal to the organization. The second is the external factors represented by the opportunities and threats that are presented by the external environment. The internal variables may be perceived as strengths or weaknesses, and this depends on their effect on the objectives of the organization. What may be perceived as strengths in relation to one goal may be seen as weaknesses for other objectives. The variables all the 4P’s of marketing and finance, personnel, manufacturing capabilities. External factors, on the other hand, may comprise technological change, macroeconomic matters, socio-cultural changes, legislation, competitive position, or changes in the market place. In SWOT analysis, the internal and external environments’ analyses are combined in an attempt to establish whether combined together the internal and external circumstances are favorable or unfavorable for an organization. In this case, an internal strength is assessed and its impacts on an external opportunity are discussed.
One of the internal strength of Kraft Foods and which has an influence on external opportunities for the company is the provision and availability of a wide variety of products. In this case, there exists a potential opportunity for the company to expand its operations in the market. Kraft Foods Group Inc. has a long way to go in terms of market or industry opportunities. The firm can use a variety of options available presently to eliminate debt requirements, as well as, other frills which are leading to low market share to the firm. The firm can engage in the process of market expansion. This can be accomplished in the developing markets such as China, India, and Japan, in Asia. Therefore, the internal strength of its wide variety of products can influence an external opportunity of expansion in the market. This will result into high profitability and productivity for the firm, which is a competitive advantage for the company.