In the context of strategic decision-making, how can a company utilize SWOT analysis to assess stakeholder interests and influence its strategic direction?

A company can use SWOT analysis to map out how its strengths, weaknesses, opportunities, and threats interact with the needs and power of its stakeholders, such as customers, suppliers, regulators, and employees. By identifying internal strengths that satisfy stakeholder demands, the firm can leverage them, while weaknesses that hurt stakeholder trust are flagged for improvement. The opportunities section highlights external chances to meet stakeholder expectations, whereas threats reveal risks that could damage stakeholder relationships. For example, a tech firm might discover that its strong brand (strength) aligns with consumer demand for privacy (stakeholder interest), while a regulatory threat could push the firm to invest in compliance, turning a weakness into a strategic focus. This holistic view lets the company shape its strategy to enhance stakeholder value while mitigating risks.