Skip to main content

What is SWOT Analysis?

The SWOT Analysis is one of several strategic planning tools that are utilized by businesses and other organizations to ensure that there is a clear objective defined for the project or venture, and that all factors related to the effort, both positive and negative, are identified and addressed. In order to accomplish this task, the process of SWOT involves four areas of consideration: strengths, weaknesses, opportunities, and threats. It should be noted that when identifying and classifying relevant factors, the focus is not just on internal matters, but also external components that could impact the success of the project.

Strengths in the SWOT Analysis are attributes or characteristics within the organization that are considered to be important to the execution and ultimate success of the project. Examples of strengths that are often cited are factors such as experienced management, state of the art manufacturing facilities, and a solid profit line already in place.



Weaknesses in the SWOT Analysis formula have to do with internal factors that could prevent the achievement of a successful result to the project. Factors such as a weak internal communication system, unhealthy levels of rivalry between departments, lack of raw materials, and inadequate funding for the project are often cited as weaknesses that can threaten to derail a project before it even begins.

The third classification of factors in the SWOT analysis is Opportunities. This classification has to do with external elements that will prove helpful in achieving the goals set for the project. Factors of this type could be the positive perception of the company by the general public, a network of vendors who are willing to work with the company to achieve success with the project, and market conditions that will help to make the project desirable to the market at large, or a least a significant segment.

Last, the final essential component for the SWOT Analysis is Threats. Here, external factors that could threaten the success of the business venture or project are listed and addressed. Among the possible threats that will be critical to any SWOT analysis is a negative public image, the lack of vendors who can supply raw materials for the project, and no ready made market for the final product of the project.

The underlying purpose of the SWOT Analysis as a strategic planning tool is to compile this list of relevant factors, and then seek answers to four essential queries. This process is usually referred to as the USED component of the SWOT Analysis. The four basic points to ponder are how to use each strength, how to stop each weakness how to exploit each opportunity, and how to defend against or eliminate each threat.
Labels:

Comments

Post a Comment

Popular posts from this blog

What is Team Effectiveness?

Team effectiveness refers to the system of getting people in a company or institution to work together effectively. The idea behind team effectiveness is that a group of people working together can achieve much more than if the individuals of the team were working on their own. Team effectiveness is determined by a number of factors, such as: * The right mix of skills. Team effectiveness depends in part on bringing together people who have different skills that somehow complement each other. This can mean different technical abilities or communication skills. In fact, teaming up people who share the exact same characteristics is often a recipe for disaster. Team effectiveness depends on people taking on different roles in a group setting. If there is no agreement on who does what in the group, it is unlikely that the team will prosper. * The right motivation. Team effectiveness is directly linked to the interest that the group has on the project. If the job is too easy or ...
Post a Comment
Read more

How to Study GMAT

When you are going to prepare for GMAT Exam you have many questions in your mind as what is this test all about? Why is it necessary to take this test? What are the contents of this test? How to prepare this test? And what are the strategies that can be proved useful during exam? This article is aimed at answering all your questions and it will be quite useful for you while preparing for the GMAT exam. Prepare GMAT using GMATPass.com (http://www.gmatpass.com) As far as the question of what is this test for and why it is important? is concerned, the answer to these questions is very simple. The Graduate Management Admission Test (GMAT) is a standardized test that's used to predict a college graduate's likelihood of succeeding in graduate schools of business. While not all business schools require candidates to take the GMAT test, the vast majority do. Scores range between 200 and 800 on the GMAT test, and everything else being equal, a higher score naturally improves your chance...
1 comment
Read more

10 Questions you should ask to yourself

"What Really Makes You Tick?" 10 questions you should ask to yourself: a preparation to self-improvement Be all you can be, but it's not always in the Army. I often see myself as somewhat contented with my life the way things are, but of course it's hard to think of anything else when where are real issues to be discussed. Still I aspire for something deeper and more meaningful. So we're all pelted with problems. Honestly it shouldn't even bother or even hinder us to becoming all we ought to be. Aspirations as kids should continue to live within us, even though it would be short-lived or as long as we could hold on to the dream. They say you can't teach an old dog new tricks… or can they? 1. What do I really want? The question of the ages. So many things you want to do with your life and so little time to even go about during the day. Find something that you are good at can help realize that small step towards improvement. Diligence is the key to k...
Post a Comment
Read more