CHAPTER 2

REVIEW IN RELATED LITERATURE AND STUDIES

Related Foreign Literature

According to Bonnici & Galea (2015) to their book entitled, Wiley Encyclopedia

of Management, A SWOT analysis evaluates the internal strengths and weaknesses, and

the external opportunities and threats in an organization's environment. The internal

analysis identifies resources, capabilities, core competencies and competitive advantages,

using a functional approach to review finance, management, infrastructure, procurement,

production, distribution, marketing, reputational factors and innovation. The internal

analysis is critical in identifying the source of competitive advantage. It pinpoints the

resources that need to be developed in order to remain competitive. The external analysis

identifies market opportunities and threats by looking at the competitors' environment, the

industry environment and the general environment. The competitors' environment is an

analysis of the resources and functions of each rival firm. The industry environment is

reviewed through the five forces framework of competitive rivalry, new entrants, suppliers,

buyers and product substitution. The external environment is analyzed in terms of political,

economic, sociocultural, technological, ecological, demographic, ethical, and regulatory

implications. The objective of a SWOT analysis is to use the knowledge an organization

has about its environments and to formulate its strategy accordingly. This article provides

a toolkit of templates to conduct a SWOT analysis and discusses practical insights on how

to formulate strategic decisions. Moreover, based on Rehak & Grasseova (2014) Crisis

Managemet, it is focused mainly on assessing the factors of the external environment in

the area of security of information systems in the organization through SWOT analysis. At
first the method is characterized from the viewpoint of its purpose and nature. The

emphasis is laid on the principles of SWOT analysis, the possible use of methods and tools,

and also the most common problems occurring during the implementation of the analysis.

The recommended methodical procedure for the implementation of SWOT analysis is

described in another part of the chapter with individual phases and particular activities,

which are appropriate to be carried out within these phases. The main part of the chapter is

focused on the ways of semi-quantitative assessment of threats to the area of information

systems of the organization, while evaluating their risks, and the assessment of

opportunities, while evaluating their benefits. Both cases include a detailed description of

procedure leading to an objective outcome during the classification of identified threats

and opportunities according to the set criteria.

Based on the International Journal of Business Research by Madsen (2016), in his

management fashion perspective, a SWOT analysis has over a period spanning several

decades enjoyed considerable popularity in the business community. In this paper

management fashion theory is used as a theoretical lens to understand the history and

evolution of SWOT as a management idea. The analysis shows that SWOT’s evolution

pattern diverges in several respects from that of other comparable management ideas. The

findings from the analysis have several implications for research on SWOT and, more

generally, management ideas and fashions.

But in the Importance-Performance Analysis based SWOT analysis of Boonyarat

Phadermrod et., al (2019), SWOT analysis, a commonly used tool for strategic planning,

is traditionally a form of brainstorming. Hence, it has been criticized that it is likely to hold

subjective views of the individuals who participate in a brainstorming session and that
SWOT factors are not prioritized by their significance thus it may result in an improper

strategic action. While most studies of SWOT analysis have only focused on solving these

shortcomings separately, this study offers an approach to diminish both shortcomings by

applying Importance-Performance Analysis (IPA) to identify SWOT based on customer

satisfaction surveys which produces prioritized SWOT corresponding to the customers’

perception. Through the use of IPA based SWOT analysis, it is expected that an

organization can efficiently formulate strategic planning as the SWOT factors that should

be maintained or improved can be clearly identified based on customers’ viewpoints. The

application of the IPA based SWOT analysis was illustrated and evaluated through a case

study of Higher Education Institutions in Thailand. The evaluation results showed that

SWOT analysis of the case study accurately reflected the organization's situations thereby

demonstrating the validity of this study. And also based on the Journal and Marketing

Management by Everett (2014), in the effectiveness of Market Sensing programs relies on

the ability to both explore markets with unbiased curiosity and focus sensing efforts where

there are the greatest possibilities of success. Fortunately, strategic analysis models such

as SWOT already exist to assist in achieving a balance between open exploration and

efficient focus. Unfortunately, these models, specifically SWOT, are frequently poorly

understood and/or misused. The research discussed in this article shows that a major

problem with SWOT Analysis is that the texts used in business schools to teach this tool

are, with a couple of exceptions, either insufficient in their presentation of SWOT or just

plain wrong! The implication for those conducting or managing Market Sensing programs

is that it is dangerous to assume that even trained business analysts will use tools such as

SWOT correctly, and that incorrect use can bias or even invalidate Market Sensing insights.
Related Foreign Studies

According to Borno (2016) internal and external will be analyzed and the obtained

information specifies opportunities and threats (external factors) and strengths and

weaknesses (internal factors). Then using SWOT matrix, the strengths, weakness,

opportunities and threats of the company will be evaluated. In fact, they are using this

instrument for the systematic analysis of the internal and external environment of the

different various sector. While in a research study of Humphrey (2015) when determining

each of the sections it is really important that the right questions are asked. A SWOT

analysis that does not produce or help towards producing realistic and achievable goals is

useless. These are just a short selection and will differ from objective to objective and from

organization to organization. The important point to take away is that the right question

will help to produce a really valuable SWOT analysis.

According to Somying Pongpimol et., al (2019) in using SWOT analysis they found

the five most important factors in the management of flexible packaging waste include:

techniques for waste management, material and design, management support, legislation

and rule, and environmental care and environmental health, respectively. Solutions

addressing flexible packaging waste were identified, including reuse and recycle, waste to

energy, biopolymers, new innovative materials and material recovery.

Criteria were prioritized by using SWOT to the internal and external environments of

organizations directly responsible for waste management.

They also provide strategic framework for policy makers and industrial

manufacturers. The benefits of this will enable them to address flexible packaging waste,

by using the quantitative and qualitative criteria.

 Based to Toto Sugito (2019) SWOT strategy is analyzing the data. The informants

are determined through purposive sampling consisting of empowerment activists,

community leaders, village government, business groups, academics, and tourists. The

result of the study shows the different perspective that can determined their SWOT.

According to Aich & Sadhan K Ghosh (2015) The use of SWOT (strength &

weakness and opportunity & threats) analysis technique for the selection of technology for

processing and disposal of municipal solid waste will help to mitigate the uncertainties and

minimize the business/project risk and will also help to identify the raw material feed mix,

establish a raw material supply chain, identify the product mix and product market,

business model & business risk. In this paper a systematic approach has been developed

for the selection of right technology for the sustainable processing and disposal of

municipal solid waste.

Related Local Studies

According to Ryan V. Labana, et., al. (2019) to analyze the strengths, weaknesses,

opportunities, and threats for three intervention components for the study control the

different various. It should be complete and consistent monitoring of program impact and

the availability of up-to-date reports to promote interventions of their study for elimination.

In the study of Leonora F. De Jesus (2018) the SWOT analysis was used to capture the

strength, weaknesses, opportunities and threats in implementation of a program. The

purpose of results is to further explain and interpret the findings from the other phase of

the study. They are using this strategy to analyzed the mean, standard deviation and SWOT

analysis. To perceived the problem of their respondents and enumerated the different

factors that can affect each other.

SWOT matrix was utilized to evaluate the inputs gathered from which strategies were

formulated aimed at enhancing self-reliance in rice production for small-farmers

(businesses). These were made the bases to carry out SWOT matrix analyses and developed

appropriate rice farming strategies for small farmers – an approach called self-reliance in

rice production that has low external inputs but high internal regeneration of inputs which

emphasizes food security and a resilient agro system with inbuilt assurance against climate

change for sustainable, natural, green and organic agriculture. He used the SWOT matrix

to get the appropriate strategy for the small farmers that will help them to productive and

ecologically sound way. Abas, Mel S. (2014) On the other hand Porfirio Alino et., al

(2014), their study about management performance of collaborative partnerships to

coordinate management of networks, they used a combination of quantitative and

qualitative survey tools and synthesized the results using a scoring rubric and analysis of

strengths, weaknesses, opportunities, and threats.

They found that the approach improved overall evaluation of the performance of

networks and individual. Moreover, the analysis for each network showed different

combinations of outcomes, highlighting the importance of using a suite of research

methods and tools. And also, networks furthered the development and effectiveness of

spatial management in the Philippines. However, the objectives of the collaborative

partnerships, their histories, and the diversity and complexity of governance (e.g. more

diverse interests with increasing number of participating institutions) had a mixed effect

on the management of networks and of individual. The outcomes of the research provide

an approach to evaluating management performance that can facilitate the establishment

and strengthening of networks in areas similar to the Philippines with multiple governance

units and complex social, economic, and political contexts.

Analyses from a focus group discussion was done using strengths, weaknesses,

opportunities, and threats (SWOT) analysis and a balanced scorecard.

The study revealed the gap between the rural school level and the subdomains are

high, while the organizational climate are proficiency. This study also established between

the ability of younger teachers with experience to better handle diverse students, master

their pedagogy, do better in planning, assessing, and reporting the learners' outcomes,

create better learning environments, and has social regard for learning. Male teachers tend

to acknowledge better the management competence in terms of personal integrity and

interpersonal effectiveness. By using the SWOT analysis their findings of this study are

intended to supplement to the dearth of researches in the database of rural education in the

Philippines. Dalanon, Junhel et., al (2018)

The primary objective of this study is to formulate effective strategies in a specific

study by using Efren C. Gimoto Jr. & Chalermchai Panyadee (2018) Strengths,

Weaknesses, Opportunities, and Threats (SWOT) analysis was used to evaluate and

process all collected data from the respondents, as well as the information gathered from

the initial organized discussions.

Sonny N. Domingo & Arvie Joy A. Manejar (2019) A Strengths, Weaknesses,

Opportunities, and Threats (SWOT) analysis complemented the process, to modify the

criteria in assessing policies to arrive at normative judgments

Conceptual Frameworks
 IV DV

Strengths, Strengths,
Weaknesses, Weaknesses,
Opportunities, and Opportunities,
Threats Strategy of Threats Strategy
Jocker’s Foods Development of
Industries Jocker’s Foods Inc.

Figure 1
Analysis of Strengths, Weaknesses, Opportunities, Threats Strategy of Jocker’s Foods
Industries
The figure shows the model or paradigm of the study.

Definition of Terms
Internal Environment- an internal environment is a component of the business

environment, which is composed of various elements present inside the organization that

can affect or can be affected with, the choices, activities and decisions of the organization.

External Environment- an external environment is a group of factors or conditions that

are outside the organization but affect it in some extent. In business, this term commonly

applies to elements related to out of control dimensions such as society, economy,

regulations and political system.

Strength- describe what an organization excels at and what separates it from the

competition: a strong brand, loyal customer base, a strong balance sheet, unique

technology, and so on
Weaknesses- stop an organization from performing at its optimum level. They are areas

where the business needs to improve to remain competitive: a weak brand, higher-than-

average turnover, high levels of debt, an inadequate supply chain, or lack of capital.

Opportunities- refer to favorable external factors that could give an organization a

competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export

its cars into a new market, increasing sales and market share.

Threats- refer to factors that have the potential to harm an organization. For example, a

drought is a threat to a wheat-producing company, as it may destroy or reduce the crop

yield. Other common threats include things like rising costs for materials, increasing

competition, tight labor supply and so on.

Management- is essential for organized life and necessary to run all types of management.

Good management is the backbone of successful organizations. Managing life means

getting things done to achieve life’s objectives and managing an organization means

getting things done with and through other people to achieve its objectives.

Strategy- is an action that managers take to attain one or more of the organization’s goals.

Strategy can also be defined as “A general direction set for the company and its various

components to achieve a desired state in the future. Strategy results from the detailed

strategic planning process”.

Qualitative Research- is a type of social science research that collects and works with

non-numerical data and that seeks to interpret meaning from these data that help us

understand social life through the study of targeted populations or places.

Quantitative Research- is defined as the systematic investigation of phenomena by

gathering quantifiable data and performing statistical, mathematical or computational

techniques.