Useful contacts and further reading A SWOT analysis is a planning tool which seeks to identify the strengths, weaknesses, opportunities and threats involved in a project or business. The factsheet examines the four elements of a SWOT analysis and the process of conducting an analysis of this nature. The factsheet also provides tips for conducting a SWOT analysis, such as getting other people involved to gain multiple perspectives and exploiting any expertise and resources already available within the organisation.
Kheng Guan Toh Organizational strategies are the means through which companies accomplish their missions and goals.
Successful strategies address four elements of the setting within which the company operates: This set of four elements—strengths, weaknesses, opportunities, and threats—when used by a firm to gain competitive advantage, is often referred to as a SWOT analysis.
An assessment of strengths and weaknesses occurs as a part of organizational analysis; that is, it is an audit of the company's internal workings, which are relatively easier to control than outside factors. Conversely, examining opportunities and threats is a part of environmental analysis—the company must look outside of the organization to determine opportunities and threats, over which it has lesser control.
Andrews's original conception of the strategy model that preceded the SWOT asked four basic questions about a company and its environment: The answers to these questions provide the input for Company profile and swot analysis on effective strategic management process.
While Andrews' original conception of this analysis has been developed and changed to the more streamlined SWOT analysis that we know today, his work is the foundation of this activity. A company's strengths may be in its ability to create unique products, to provide high-level customer service, or to have a presence in multiple retail markets.
Strengths may also be things such as the company's culture, its staffing and training, or the quality of its managers. Whatever capability a company has can be regarded as strength.
A company's weaknesses are a lack of resources or capabilities that can prevent it from generating economic value or gaining a competitive advantage if used to enact the company's strategy. There are many examples of organizational weaknesses.
For example, a firm may have a large, bureaucratic structure that limits its ability to compete with smaller, more dynamic companies. Another weakness may occur if a company has higher labor costs than a competitor who can have similar productivity from a lower labor cost.
The characteristics of an organization that can be strength, as listed above, can also be a weakness if the company does not do them well.
Opportunities provide the organization with a chance to improve its performance and its competitive advantage. Some opportunities may be anticipated, others arise unexpectedly.
Opportunities may arise when there are niches for new products or services, or when these products and services can be offered at different times and in different locations. For instance, the increased use of the Internet has provided numerous opportunities for companies to expand their product sales.
Threats can be an individual, group, or organization outside the company that aims to reduce the level of the company's performance.
Every company faces threats in its environment. Often the more successful companies have stronger threats, because there is a desire on the part of other companies to take some of that success for their own.
Threats may come from new products or services from other companies that aim to take away a company's competitive advantage. Threats may also come from government regulation or even consumer groups. A strong company strategy that shows how to gain competitive advantage should address all four elements of the SWOT analysis.
It should help the organization determine how to use its strengths to take advantage of opportunities and neutralize threats. Finally, a strong strategy should help an organization avoid or fix its weaknesses.
If a company can develop a strategy that makes use of the information from SWOT analysis, it is more likely to have high levels of performance. Nearly every company can benefit from SWOT analysis. Larger organizations may have strategic-planning procedures in place that incorporate SWOT analysis, but smaller firms, particularly entrepreneurial firms may have to start the analysis from scratch.
Additionally, depending on the size or the degree of diversification of the company, it may be necessary to conduct more than one SWOT analysis. If the company has a wide variety of products and services, particularly if it operates in different markets, one SWOT analysis will not capture all of the relevant strengths, weaknesses, opportunities, and threats that exist across the span of the company's operations.
Many organizational executives may not be able to determine what these elements are, and the SWOT framework provides no guidance. For example, what if a strength identified by the company is not truly a strength?
While a company might believe its customer service is strong, they may be unaware of problems with employees or the capabilities of other companies to provide a higher level of customer service. Weaknesses are often easier to determine, but typically after it is too late to create a new strategy to offset them.
A company may also have difficulty identifying opportunities. Depending on the organization, what may seem like an opportunity to some, may appear to be a threat to others. Opportunities may be easy to overlook or may be identified long after they can be exploited. Similarly, a company may have difficulty anticipating possible threats in order to effectively avoid them.
While the SWOT framework does not provide managers with the guidance to identify strengths, weaknesses, opportunities, and threats, it does tell managers what questions to ask during the strategy development process, even if it does not provide the answers.What, pray tell, is a SWOT analysis?
Simply put, it’s a way to assess an organization’s strengths and weaknesses (the internal factors that affect your business), as well as opportunities and threats (the external factors that play a role in your success or failure), and to compare them to those of their competitors.
In the [ ]. Commentaries from industry expert Frank Holmes focusing on gold price movements, what's moving markets and what to expect in the metals sector. This includes his weekly Gold SWOT analysis, which is also featured in his own Kitco News show Gold Game Film. SWOT analysis - There are many analysis tools used in supporting businesses, among them is the SWOT analysis.
Arguably one of the most commonly used and misused tools. This pages outlines what a SWOT analysis is and some options to use it effectively.
How do I do a SWOT analysis, how to do a SWOT analysis, templates and worksheets to help you do a SWOT. Strategic Management > SWOT Analysis.
SWOT Analysis. SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans.
SWOT analysis - There are many analysis tools used in supporting businesses, among them is the SWOT analysis. Arguably one of the most commonly used and misused tools. This pages outlines what a SWOT analysis is and some options to use it effectively.
How do I do a SWOT analysis, how to do a SWOT analysis, templates and worksheets to help you do a SWOT. Jun 29, · Nonprofits need to follow SWOT analysis methods to help them maximize all resources and best support the mission of the organization.
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