On a correlative and evolutionary SWOT analysis

Abstract

Purpose The purpose of this paper is to counter-propose a new approach of SWOT analysis, which can be used in the strategic planning of the contemporary organizations. Design/methodology/approach This paper, after presenting the conceptual context of the existing (conventional) SWOT analysis, presents the existing criticism within the international literature. Then, it articulates gradually the new evolutionary and correlative SWOT analysis, by using the approaches and the literature of evolutionary economics, and the Stra.Tech.Man approach in business dynamics. In conclusion, it presents the new conceptual framework on which a new correlative SWOT analysis can be based. Findings Main finding of this research is that the interpretation of the conventional SWOT analysis tends to study the strengths and the weaknesses of the business with an analytical dichotomy. The conventional SWOT analysis conceptualizes, usually implicitly, the opportunities and threats of the external environment as having the same impact to all the socioeconomic agents, without exception. However, by using a correlative interpretation of SWOT analysis, we understand that the opportunities and threats are always “potential,” depending on the organization’s strategic capability to exercise its comparative strengths and weaknesses. Originality/value In the existing literature of SWOT analysis, despite the growing criticism, there is no critique that can give systemic and correlative answers to the articulation of business strategy in SWOT terms. The Stra.Tech.Man approach, also, is a conceptual framework to study the evolutionary adaptation of all the kinds of socioeconomic organizations.

Conceptual Notes on the Internal Business Environment Analysis and the Stra.Tech.Man Synthesis

“…With the above, the organic and evolutionary understanding of the organizational business environment provides the necessary basis for an evolutionary SWOT analysis (Vlados, 2019b;Vlados & Chatzinikolaou, 2019c). In the direction of an evolutionary and "correlative" SWOT analysis, the strengths and weaknesses of the socioeconomic organization are always evolutionarily comparative.…”

“…In its place, new and dominant strong points, considered secondary or marginal until yesterday, may emerge in competition. Likewise, a comparative weakness today, considered of little strategic importance, may prove critical for the firm's future survival (Vlados, 2019b;Vlados & Chatzinikolaou, 2019c). In this perspective, all strengths and weaknesses of the "socioeconomic ecosystem" stem ultimately from the Stra.Tech.Man triangle.…”

“…The exploration of the inner structural socioeconomic elements that comprise the internal environment of the firm is one of the two critical pillars of articulating an integrated business strategy -together with the external business environment. Based on a simultaneous examination of these two analytical dimensions (external and internal environment), SWOT analysis can be further consolidated, which is the source of the subsequent strategic planning of the firm and which results in the overall strategic plan (Vlados, 2019b;Vlados & Chatzinikolaou, 2019c).…”

Evolutionary Economics and the Stra.Tech.Man Approach of the Firm into Globalization Dynamics

“…In this sense, a SWOT analysis that takes into account strengthsweaknesses/opportunities-threats is essentially a dynamic-historical process. A "correlative SWOT analysis" (Vlados, 2019b;Vlados and Chatzinikolaou, 2019d) realizes that only "comparative" strengths exist, over time and compared with other organisms, which lead to specific potential opportunities, respectively. On the other hand, only "comparative" weaknesses exist, which lead to specific potential threats.…”

Schumpeter, Neo-Schumpeterianism, and Stra.Tech.Man Evolution of the Firm

“…• "Flexible" firms base their activities on extensive participation in the sphere of management. In the sphere of technology, it seems that they are capable of assimilating an increasing complexity, while in the sphere of strategy they exploit an evolutionary and historical logic that allows planning their strategic steps through a "correlative" rather than an absolute and unhistorical identification of their strengths and weaknesses (Vlados, 2019). Note 2.…”