Would SWOT analysis be useful to Charlie in managing Megatoys? Discuss.

A SWOT Analysis is a strategic planning tool that can help Charlie evaluate his chances of success with Megatoys.

A SWOT analysis outlines the strengths, weaknesses, opportunities and threats that Charlie needs to be aware of in order to better manipulate, navigate and continue to grow in the business environment. It creates the framework and gets him thinking about everything that could potentially impact the success of his expansion and growth. Poor business decisions may be made if Charlie fails to consider a key strength, weakness, opportunity and threat in the environment. In a SWOT Analysis, the Strengths and Weaknesses are internal to the company and can be managed by it, whereas, opportunities and threats are external to the company and the company in this situation can only anticipate and react to them.

Strengths are factors that give the company an edge over its competitors and weaknesses can be harmful if used against the firm by its competitors. Opportunities are favorable situations which can bring a competitive advantage and threats are unfavorable situations that can negatively impact the business.

A SWOT analysis provides simplicity and value of focusing on the key issues that can and will affect Megatoys, and thus will assist Charlie to be in a position to identify the strengths and weaknesses that are relevant in meeting the opportunities and threats in particular situations in the industry and environment. Charlie can appreciate the benefits that a SWOT Analysis is able to give due to its simplicity and practicality of use; it is clear to understand; it focuses on the key internal and external factors that would affect Megatoys, it will help the team to identify future goals and it will assist in initiating further