Focus Areas of The Strengths And Weaknesses

Running head: BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
Name of the Student
Name of the University
Author Note

1BUSINESS ENVIRONMENT
Answer 1
SWOT Analysis refers to the study that the organizations undertake for determining its
key areas of improvement. It stands for Strengths, Weaknesses, Opportunities and Threats. It is a
powerful tool for developing business strategies. Strengths and Weakness are internal factors of
the organisation whereas Opportunities and Threats are external. The key focus areas of the
strengths and weaknesses depend upon the exposure of the organization to threats and
opportunities (Phadermrod, Crowder and Wills 2019). SWOT analysis will help the management
to look at the business in new ways in different views.
SWOT Analysis is helpful for the organizations as it helps in strategic planning. It helps
the companies to take advantage of any new business opportunities and responding to new
trends. It helps in building upon the strong areas and addresses the areas that are lacking. Risks
can be minimized and better competitive advantages can be taken with the help of this analysis.
Answer 2
According to the case study Huawei refers to a very popular technology brand that was
founded in the year 1987 by Ren Zhengfei. A number of strengths, weaknesses, opportunity and
threats are analysed that can be structured with reference to three broad business functions like
the Human Resource Management, Accounting and Finance and Marketing. The following table
depicts the SWOT analysis as per the respective business functions clearly:

2BUSINESS ENVIRONMENT
Human Resource
Management
Accounting and
Finance
Marketing
Strengths The workforce is
highly skilled and
qualified to design
superior models.
Operational cost gets
reduced because of its
own development and
designing of products.
It develops and
designs its own
products.
Huawei is privately
held and owned by
employees. The
employees therefore
are motivated to
perform better in
order to generate
more returns for
themselves.
Since Huawei is not a
public listed
company, so it invests
a huge amount in
research and
development. Huawei
spends US$20bn on
Research and
Development every
year.
Higher investment in
research and
development helps in
acquiring better
quality of market
information. They
have a strong
distribution network.
Weaknesses Employee
management is not
proper and hence the
attrition rate is higher
in the organisation.
In financial
perspective they make
huge investments on
training and
development but if the
attrition rate is higher
They are unable to
forecast the product
demand and hence
misses several
opportunities as
compared to its