SWOT Analysis
A strategic planning process involves a scan of the internal and external environments. The internal environment can be scanned by analysing the strengths and weaknesses of an organization, while an external environment scanning could be done by analysing opportunities and threats to an organization. This method of strategic planning is called SWOT analysis where SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
Strengths
An organization’s competitive advantage may be built based on its capabilities and its resources. These resources are the strengths of an organization. These could include:
Weaknesses
The weaknesses of an organization maybe some attribute it lacks at. Some of which could be
Weaknesses must be faced head on, as it’s best to be realistic and face the truth as soon as possible.
Opportunities
An external environment scan can reveal opportunities that can be used for growth and profit. Some such opportunities are
Threats
Certain changes in the environment can also pose as threats to an organization. These can be
SWOT analysis can have different results when done by different people. It must not be relied upon heavily. It can be used simply as a guide for performance improvement.
SWOT (or TOWS) matrix
A good opportunity may not necessarily be the best course of action. Sometimes it’s better to analyse how a company’s strengths can be used with an opportunity to develop a competitive advantage.
A SWOT matrix may be constructed using the SWOT profile created. SWOT matrix is sometimes called a TOWS Matrix.
SWOT Matrix
The interaction of the different quadrants of a swot matrix is very important, while developing a strategy. Strengths must be leveraged to pursue opportunities and to avoid threats. Weaknesses must be kept in mind in order to be able to pursue opportunities.
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Saturday, July 6, 2013
SWOT Analysis
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