Hello everyone! I am Harshad Pathe. I am writing a content on a very informative and essential topic that is “SWOT ANALYSIS” Let’s have a glance on what SWAT actually means and what is its importance.
SWOT is a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats….
Let’s see SWOT’s full nature
S means Strengths
W means weaknesses
O means opportunities
Where T stands for Threats
SWOT has mainly 2 Origins namely:
1/ Internal Origin 2/ External Origin
Strengths and weaknesses come under internal origin where as opportunities and Threats comes under External Origin.
Strengths and weaknesses are helpful for achieving objectives where as opportunities and Threats are harmful to achieve objectives.
SWOT analysis or SWOT matrix is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.
It is designed for use in the preliminary stages of decision-making processes and can be used as a tool for evaluation of the strategic position of a city or organization.
It is intended to specify the objectives of the business venture or project and identify the internal and external factors that are favorable and unfavorable to achieving those objectives.
Let’s first see importance of
In SWOT ANALYSIS….It can be elaborate as Strengths and weakness are frequently internally-related, while opportunities and threats commonly focus on the external environment.
Strengths: characteristics of the business or project that give it an advantage over others.
Weaknesses: characteristics of the business that place the business or project at a disadvantage relative to others.
Opportunities: elements in the environment that the business or project could exploit to its advantage.
Threats: elements in the environment that could cause trouble for the business or project.
The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. First, decision-makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable, they must select a different objective and repeat the process.
SWOT ANALYSIS AT PERSONAL LEVEL:
SWOT Analysis is not only helpful on professional level but also helpful for personal level. SWOT analysis is the examination of your situation by looking at Strengths, Weaknesses, Opportunities and Threats. … SWOT analysis are however, equally useful on a personal level as a way to identify areas for development, and as part of career discussions.
SWOT analysis can be applied on our personal level so that we can
Alternatively gain and achieve objectives and success on the path of life.
SWOT, analysis is a way of looking at your situation by identifying:
Strengths or those areas where you have an advantage over others, or some unique resources to exploit;
Weaknesses or areas where you or your organisation may be weaker than others, and may find that others can do better than you;
Opportunities, or possibilities that you can take advantage of to help you achieve your goals and ambitions; and
Threats, or things that may prevent you or your organisation from making a profit or achieving your goal.
A personal SWOT analysis, however, may be more useful if you focus on a specific goal or problem that you want to address. This is because we all have a number of very diverse goals. The skills and attributes that may help us towards one goal may be irrelevant, or even a weakness, in another context. A threat in one context could be unimportant in another. Till now we have seen what SWOT actually means its nature and importance as well as implementation of SWOT ANALYSIS on personal level
Now let’s see SWOT ANALYSIS PROCESS a personal SWOT analysis can be done on your own.
However, it is worth bearing in mind that a business SWOT analysis is stronger if it draws on evidence from outside the organisation, such as independent market research, or views from customers.
In the same way, a personal SWOT analysis is likely to be more powerful if you draw on the views of others.
If, for example, you are part of a learning group at work, or at college or university, you can agree to go through the process for each other in turn. You can even gather evidence from each other’s colleagues to support the analysis.
If you are doing this by yourself, you may want to ask friends and colleagues their views on your strengths and weaknesses.
SWOT ANALYSIS PROCESS –
Swat analysis is simply a process of identifying our strengths and steps to achieve goals. Let’s see the process in detail
The process can be elaborate as follows…
1. Identify the goal that you want to achieve It is important to be as specific as possible. Be clear about timing, that is, when you want to achieve your goal, and also how you will know that you have achieved it.
Thinking specifically about that goal:
2. Identify the personal strengths
That will help you to achieve it, and the weaknesses that could prevent you. It is often helpful to consider knowledge, skills, experience, resources and support that you have available. If you list these headings separately, you will remember to consider them all. These areas are generally internal, that is, they relate to you personally, and the resources and skills that are available to you. They are, therefore, things that are generally under your control.
3. Identify any personal opportunities
That could enable you to achieve the goal, and also that you will be able to take advantage of when you have achieved it
Opportunities are generally external, relating to the environment and those around you, rather than you yourself. They include things like:
Promotions and financial incentives; and
Events that is likely to happen at work or outside, such as someone going on maternity leave or sabbatical, that might mean you have a chance to do something new. In identifying opportunities that might open up as a result of achieving your goal, consider both short- and long-term benefits.
4. Identify any threats
These are external things and events that are worrying you or that might happen and prevent you from either achieving your goals, or taking advantage of the benefits.
5. Review and prioritise
Finally, as always with development activities, and anything that looks like strategic thinking, it is a good idea to review your analysis.
A SWOT analysis evaluates the internal strengths and weaknesses, and the external opportunities and threats in an organization’s environment. The internal analysis identifies resources, capabilities, core competencies and competitive advantages, using a functional approach to review finance, management, infrastructure, procurement, production, distribution, marketing, reputational factors and innovation. The internal analysis is critical in identifying the source of competitive advantage. It pinpoints the resources that need to be developed in order to remain competitive. The external analysis identifies market opportunities and threats by looking at the competitors’ environment, the industry environment and the general environment. The competitors’ environment is an analysis of the resources and functions of each rival firm. The industry environment is reviewed through the five forces framework of competitive rivalry, new entrants, suppliers, buyers and product substitution. The external environment is analyzed in terms of political, economic, sociocultural, technological, ecological, demographic, ethical, and regulatory implications. The objective of a SWOT analysis is to use the knowledge an organization has about its environments and to formulate its strategy accordingly. This article provides a toolkit of templates to conduct a SWOT analysis and discusses practical insights on how to formulate strategic decisions.
We have seen SWOT ANALYSIS Process Now let’s see its advantage and benefits…
SWOT ANLYASIS BENEFITS:
SWOT ANALYSIS BENEFITS:
The main advantages of conducting a SWOT analysis is that it has little or no cost – anyone who understands your business can perform a SWOT analysis. You can also use a SWOT analysis when you don’t have much time to address a complex situation. This means that you can take steps towards improving your business without the expense of an external consultant or business adviser.
Another advantage of a SWOT analysis is that it concentrates on the most important factors affecting your business. Using a SWOT, you can:
Understand your business better
Capitalize on opportunities
Take advantage of your strengths
Develop business goals and strategies for achieving them.
Limitations of SWOT analysis
When you are conducting a SWOT analysis, you should keep in mind that it is only one stage of the business planning process. For complex issues, you will usually need to conduct more in-depth research and analysis to make decisions. Keep in mind that a SWOT analysis only covers issues that can definitely be considered a strength, weakness, opportunity or threat. Because of this, it’s difficult to address uncertain or two-sided factors, such as factors that could either are strength or a weakness or both, with a SWOT analysis (e.g. you might have a prominent location, but the lease may be expensive).
A SWOT analysis may be limited because it:
Doesn’t priorities issues
Doesn’t provide solutions or offer alternative decisions
Can generate too many ideas but not help you choose which one is best
Can produce a lot of information, but not all of it is useful.
Steps for Conducting SWOT Analysis –
Confirm the changes in the external environment of the company (Porter 5 force or PEST)
According to the company’s resource mix, confirm the company’s key capabilities and key constraints.
Construct the SWOT Matrix by placing each one of already identified factors. This is an excellent graphic presentation of what is good and what is bad in your company, and what you can expect as an opportunity or threat.
Define SWOT Strategies
Choose what strategy to be adopted and determine the future direction and improvement actions to be taken…..
We have seen SWOT analysis Process
Now let’s see its advanges and benifits….
We have glanced through steps of conducting SWAT Analysis…..Let’s see about it in detail
The SWOT analysis method is the situation analysis method. It was proposed by Weirik, a professor of management at the University of California San Francisco in the early 1980s. It is often used in enterprise strategy formulation, competitor analysis and other occasions including analysis of Strengths, Weaknesses, Opportunities, and Threats. Therefore, the SWOT analysis is a method that comprehensively summarizes the various aspects of the internal and external conditions of the enterprise, and then analyzes the advantages and disadvantages of the organization, opportunities, and threats faced.
Through SWOT analysis, you can help companies to pool resources and actions in their strengths and where there are the most opportunities; and to make their strategy clearer.
Let’s have a glance on conduction of SWAT analysis
Conducting a SWOT analysis
A SWOT analysis is a tool for documenting internal strengths (S) and weaknesses (W) in your business, as well as external opportunities (O) and threats (T). You can use this information in your business planning to help achieve your goals. To work out if something is an internal or external factor, ask yourself if it would exist even if your business didn’t. If it would, then it’s an external factor (e.g. new technology).
Other benefits include:
SWOT analysis provides an organization a clear view of its strengths, allowing it to build on them and meet business objectives. Highlights weaknesses and provides analysts a chance to reverse them.
This is how SWOT ANALYSIS actually means…..We have seen its process how it gets conducted case study action study and benifits this is how it works on professional as well as personal level.
From: Harshad PATHE