Can the results of a SWOT analysis justify abandoning a core business function?

A SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats, is a strategic planning tool that helps organizations identify internal and external factors that can impact their success. When analyzing the results of a SWOT analysis, the insights gained can certainly suggest a need to reconsider or even abandon a core business function under certain circumstances.

For instance, if the analysis reveals that a particular core function is consistently identified as a weakness or a significant threat—such as declining market demand, overwhelming competitive challenges, or failure to align with the organization’s strengths and opportunities—it may indicate that maintaining that function could hinder overall performance. Additionally, if resources are better allocated to areas of opportunity, the decision to abandon a core function could be justified as a strategic move for the long-term success of the organization.

This is particularly relevant when the operational costs associated with maintaining the function exceed the benefits it provides, leading to potential financial strain. Therefore, in alignment with the insights provided by a thorough SWOT analysis, abandoning a core business function can be a rational decision when the risks outweigh the benefits and there are better opportunities available.