One of the reasons I love working with students is often something that is old to me and to many analysts, is actually new to them. SO getting to explain SWOT to students, or in this case having a student share with me their understanding of SWOT is pretty cool.
SWOT can be very helpful in general consulting and also in process optimization projects that many analysts find themselves assigned to.
How the SWOT ANALYSIS helps the business
One of the best way of evaluating a business unit opportunities is conducting the SWOT Analysis. Using a SWOT Analysis in your business, you can provide a necessary tools and information to establish your goals and objectives. And it will measure the progress of the business. The Strengths’ and the Weakness and the Weaknesses will be the inside Factors; the Opportunities and Threats will serve as the exterior factors.
Evaluating the Strengths
Evaluating what does the company do well, does the company has strong sense of purpose and the culture to support that purpose and is the company strong in its market. It could be your marketing expertise, or your excellent customer service. It’s important to try to evaluate your strengths in terms of how they compare to those of your competitors.
Recognize the Weaknesses
Recognizing the weaknesses will aid the decision-making process designed to improve you’re company. Don’t just make a list of mistakes that have been made but instead learned from what happened. Be prepared to hear things you may not like, but which, ultimately, may be extremely helpful. Business weaknesses can include accessibility of product, higher prices than other competitors and poor quality of products and services. By this you can minimize your weaknesses.
Look for the Opportunities
In this section you can identify what are the new opportunities for your business and interesting trends which you can take advantage of. Example of opportunities includes potential new uses of products or services, social factors and the use of marketing or promotional techniques to market the business.
Be ready for the Threats
Threats to your business can be also as weaknesses and can be adversely affect your business but it can be a short- term circumstances that can be resolved immediately. For external Threat it could be new legislation or a new competitor in your market and for internal threats could include the company’s skill or staff shortage.