The Improved SWOT Approach And Its Application In The Formation Of Enterprise Strategy

Strategy Management is an activity that the enterprises take aims to achieve the goal and seek a position in a competitive environment. It is an entire processing which includes total designing, planning, choice, implement and the result. Strategy management strengthens the competitive advantages of the enterprise by identifying the opportunities and avoiding the adventures to make it remain invincible. With the changing of market environment and its speeding up, more and more enterprise realize that changeless strategy can not meet the needs of enterprise development,instead they need continually changing and adjusting the strategies to accelerate the development. This paper is about how to make strategies according the changing environment and how meet the strategy with the development.SWOT can give out the best strategic combination by analyzing the interior and exterior conditions in the enterprise which is advanced by professor Andrews in business school of Harvard in 1960 years. SWOT is widely used in the study of strategy and competition and it becomes an important tool for strategy management and intelligence currently.The wide application of SWOT in strategy analysis can not cover up its limitations; those deciders who use conventional SWOT to make strategies usually feel it difficult to work. In my opinion, the traditional SWOT has the following drawbacks: (1) SWOT doesn't regard the market environment as a whole but analyze it from interior condition and exterior environment separately. (2)SWOT considers ordinarily opportunity and threat consist just in the exterior and advantage and weakness consist only in the interior but that is not completely true. (3)SWOT identifies opportunities and threats subjectively. (4)SWOT treats strengths, weaknesses, opportunities and threats equally. As a fact, strengths and weaknesses are interior condition that enterprises can not change in little time while enterprises are able to grasp the opportunities. That is why enterprises should identify the opportunities and threats according to their interior condition. (5) SWOT doesn't consider the different role of S, W, O and T. As a rule, it just fits strengthens and opportunities together, weaknesses and opportunities together, strengthens and threats together, weaknesses and threats together to make strategies, as a result of poor maneuverability and practicability.With the above drawbacks considered, an improved method is proposed. Firstly, enterprises should analyze its exterior opportunities and threats based on its strategic objective and interior condition; then find out the opportunities and threats which are important to its strategic objective and also in the control of its interior condition. Secondly, In order to apply the opportunities identified above enterprises should recognize its core strengthens and terrible weaknesses. It is the same that enterprises should find out its great strengthens and main weaknesses to avoid the threats. Thirdly, according the analysis above, we obtain opportunities with its corresponding strengthens and weaknesses, threats with its corresponding strengthens and weaknesses. Then we connect opportunities and strengthens together, opportunities and weaknesses together, opportunities, strengthens and weaknesses together, threats and strengthens together, threats and weaknesses together, threats, strengthens and weaknesses together separately. As a result, the responding strategies are given by the real world of the enterprise.By group decision-making enterprises estimate their exterior environment and interior condition and DS/AHP is used to process the estimated results and solve the uncertainty problems.The introduction of DS/AHP makes the analysis of subjective factors more practical and scientific, which help the enterprise realize its current condition and make feasible strategy for its future development.In the end, the new method and model are applied in enterprise A, and the advanced development strategy is suitable to the factual circumstance. Note that the strategy is accepted by the leaders and specialists and the model is also testified to be feasible.