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Critical External and Internal Effects That Affect Firms Strategic Planning

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International Research Journal of Finance and Economics ISSN 1450-2887 Issue 51 (2010) © EuroJournals Publishing, Inc. 2010 http://www.eurojournals.com/finance.htm

Critical Internal and External Factors that affect Firms Strategic Planning
Kay Dora Abd Ghani Faculty of Civil Engineerings, University Teknologi MARA, Malaysia E-mail: kaydora@perlis.uitm.edu.my Surina Nayan Academy of Language Studies, University Teknologi MARA, Malaysia E-mail: surinana@perlis.uitm.edu.my Sheikh Ahmad Izaddin Sheikh Mohd Ghazali Faculty of Applied Science, University Teknologi MARA, Malaysia E-mail: sheikhahmadizaddin@nsembilan.uitm.edu.my Latisha Asmaak Shafie Academy of Language Studies, University Teknologi MARA, Malaysia E-mail: ciklatisha@perlis.uitm.edu.my Suhaimi Nayan UniKL Malaysian Spanish Institute, Malaysia E-mail: suhaimin@msi.unikl.edu.my Abstract Every firm that involves in business activity has its own strategy to operate its daily business. Strategic planning is the important element in every firm strategic management. There are various methods and techniques that can be employed in order to implement strategic planning and one of them is by using the SWOT analysis. SWOT analysis refers to strengths, weaknesses, opportunities and threats. Strengths and weaknesses are the internal factors of an organization and opportunities and threats are the external factors. This is a study on critical internal and external factors that affect the strategic planning of land developers in Malaysia. Questionnaires were distributed to get information needed. From the analysis done, it was found that firms’ strengths are related to their financial resources and the weaknesses are related to the firms’ management. On the other hand, the external factors which have become opportunities to the firms are support and encouragement from the government. Threats are the bureaucratic

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