|
|
SWOT Analysis
What is SWOT?
SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a management analysis and business planning tool. The purpose of using SWOT as a management technique is to assess and analyze the Strengths, Weaknesses, Opportunities, and Threats.
SWOT Analysis defines the business goal such as strategic management goal or project goal and takes into consideration all major factors – both the positive and negative internal and external forces which have substantial impact on accomplishing the business goal. SWOT start with clearly defining the goal, objective or the desired future outcome. Next, list the strengths of the business – internal factors that are favorable for achieving your goal. Now, list all important weaknesses – internal forces that can work against accomplishing your goal. After you define your internal factors (strengths and weaknesses), next you need to identify the external forces. Opportunities are outside forces which are good for your business. Make a list of all opportunities. Now list all substantial threats. Threats are external forces that are potential risk for your business and they work against you. Generally you cannot control the external forces – they are given and you need to plan how to explore and utilize the opportunities while at the same time minimize the risk and try to avoid the potential threats.
SWOT is a very effective tool and although it is mainly associated with businesses SWOT Analysis can be used in any complex salutation where decision making requires thorough analysis. After you list the Strengths, Weaknesses, Opportunities, and Threats, take a look at your strengths and make sure they are relevant. For example listing your company strength as “strong design capabilities” when your major competitors have similar capabilities might not be really an important strength. Always compare your strengths with your competitors and try to make a fit between your strengths and the opportunities you have identified. Weaknesses are also internal drivers and that means you can control them and you can make changes. Are there any quick fixes to your weaknesses? Can you minimize risk and avoid some of the treats if you fix some of your weaknesses?
|
|
|
