LIMITS OF SWOT ANALYSIS AND THEIR IMPACT ON DECISIONS IN EARLY WARNING SYSTEMS

Abstract

SWOT (strengths, weaknesses, opportunities, threats) analysis is useful in the decision-making process – crucial to any organization manager and/or strategist. This study aims to add value to the existing literature on SWOT, indicating its use and limitations, showing the need to link SWOT to other strategic tools and methodologies. As the current environment is turbulent and unpredictable, and economic cycles no longer comply with traditional rules, the precaution has become extremely important. That’s why SWOT should be supplemented with newer dynamic analysis capabilities and strategy tools, as early warning and opportunities system (EWOS), which can provide crucial inputs for scenario building, strategic thinking and decisions. EWOS is a novel approach based on three concepts that contribute to the ability of organization/project managers to develop outstanding capacity to "understand" and "benefit" in identifying opportunities and threats: (i) business and competitive intelligence; (ii) early warning thinking; (iii) strategic thinking in decision making process. EWOS is of practical use for strategists and decision makers.

Keywords

• SWOT analysis
• Early warning
• Early warning and opportunities system (EWOS)
• Decision making
• Organization strategy