Swot Analysis

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SWOT ANALYSIS Definition: Situation analysis in which internal strengths and weaknesses of an organization, and external opportunities and threats faced by it are closely examined to chart a strategy. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT Analysis – Introduction & Strategies: SWOT analysis is a method for analyzing a business, its resources, and its environment. SWOT is commonly used as part of strategic planning and looks at: • Internal strengths • Internal weaknesses • Opportunities in the external environment • Threats in the external environment SWOT can help management in a business discover: • What the business does better than the competition • What competitors do better than the business • Whether the business is making the most of the opportunities available • How a business should respond to changes in its external environment The result of the analysis is a matrix of positive and negative factors for management to address: Positive factors Negative factors Internal factors Strengths Weaknesses External factors Opportunities Threats The key point to remember about SWOT is that: Strengths and Weaknesses: • Are internal to the business • Relate to the present situation Opportunities and Threats: • Are external to the business • Relate to changes in the environment which will impact the business Using SWOT Analysis: There is no point producing a SWOT analysis unless it is auctioned! SWOT analysis should be more than a list - it is an analytical technique to support strategic decisions Strategy should be devised around strengths and opportunities The key words are match and convert: A key challenge for any business is to convert weaknesses into strengths. For example: Weakness Possible Response Outdated technology Acquire competitor with leading technology Skills gap Invest in

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