SWOT Analysis and its Effective use
Analysing the overall business undertaking in terms of its Strength, Weakness, Opportunity and Threats (SWOT) helps the business to identify what it is doing right and what needs to change in the organization. Successful businesses build on their strengths, correct their weaknesses and protect against internal weaknesses and external threats. A SWOT analysis is essentially a way to get the organisation focused on specific goals, projects and objectives whiles working to correct any shortcomings identified in the company. It is an organized approach that helps businesses identify ways to improve efficiency and productivity.
SWOT analysis is described as follows:
Strengths describe the positive attributes, tangible and intangible, internal to the organisations that are within its control;
Weaknesses are aspects of the organisation that detract from the value it offers in the market or that place the organisation at a competitive disadvantage.Weaknesses need to be worked on in order for the business to compete effectively in the market;
Opportunities are external attractive factors that represent reasons the organisation is likely to prosper;
Threats are external factors beyond the organisation’s control that could place its strategy, or the organisation itself, at risk. Even though the organisation has no control over these factors, it is beneficial to have contingency plans in place to address them should they occur.