Name Israr Ahmad ID 11139 MBA 1.

5 CUSIT Pesh
Diff Between the SWOT Matrix & the Grand Strategy Matrix

Small-business owners can take advantage of some powerful strategic tools when developing
their business plans. The SWOT matrix helps entrepreneurs examine their internal capabilities
and external circumstances, while the grand strategy matrix assesses where the company stands
in the industry and how it can perform in different economic conditions. Business owners who
understand how these tools work, both separately and together, can increase their profile in a
competitive marketplace.

Strategic Planning Tools

The primary purpose of strategic planning tools, such as the SWOT matrix and the grand
strategy matrix, is to help entrepreneurs anticipate both the potential profits and possible
pitfalls of operating a small business. These tools fill a vital role in developing the final
business plan. Strategic planning efforts refine the business owner's vision, allow the start-up
efforts to focus on those tasks most vital to the company and make sure that the final plan
meets specific business needs.

SWOT Matrix
A SWOT matrix resembles a 2x2 square graph. The four squares in the 2x2 matrix list the
strengths, weaknesses, opportunities and threats the company faces. Strengths represent
internal advantages that the company and its staff have over its competition, while weaknesses
show possible areas where the company is less capable than its rivals. Opportunities are
beneficial events the company can use to its advantage, while threats are external forces that
can place the business in peril.

Grand Strategy Matrix

The grand strategy matrix carries the same 2x2 structure as the SWOT matrix. The vertical axis
represents the market growth in the company's industry, while the horizontal axis depicts the
company's competitive position. For example, one quadrant lists the company's attributes when
it has a strong competitive position and the market is undergoing rapid growth, while the
opposite quadrant shows the company's advantage when it lags behind its competitors in a
weak market.

Related Information
The information the business owner compiles on both the SWOT matrix and the grand strategy
matrix can be useful in isolation but can also be much more powerful when used in tandem.
For example, the SWOT matrix can identify the threats that can lead to weak market growth,
while the grand strategy matrix shows the company's qualities during periods of weak market
growth. This correlation allows management to see the signs of weak market growth and use
its attributes to its advantage during those slow periods.