Professional Documents
Culture Documents
TutorsIndia/Resources/Assignment/StrategicManagement/Tools
1.0 Introduction
threats that might exist in any kind of business. Conducting a SWOT analysis could prove to be
very instrumental in helping the organization to acquire in-depth insights into the past and
conjure potential solutions to current or potential challenges. This SWOT analysis can be carried
out for an organization that is already existing within the market or for an organization that
intends to make an entry into the market in the near future (Gürel, 2017). In particular, SWOT
comes across as a model that is very fundamental and transparent that can evaluate what a
business is capable of doing or incapable of doing, along with the possible opportunities and
threats. The SWOT analysis technique is to consider the information generated through an
environmental evaluation and segregate it to internal (strengths and weaknesses) and external
issues (opportunities and threats). Following the completion of this activity, the SWOT analysis
would determine what would aid the organization in realizing their objectives, and the kind of
challenges that need to be overcome or reduced in order to realize the intended outcomes
(Namugenyi et al., 2019). A large number of organizations execute a SWOT analysis during the
stage of their strategic planning and they attempt to identify and scrutinize the prevalent
resources, both externally as well as internally, examining their patterns and trends that might
The objective of this paper is to familiarize you with the components of SWOT and tips
The actual process of SWOT analysis would comprise of splitting four areas into two
Opportunities and Threats. Strengths and weaknesses can be deemed as factors that are internal
and also make up the organizational attributes while, opportunities and threats would be factors
that are external and are usually the environmental attributes (Gürel, 2017).
2.1 Strengths
This, as you would know makes up the first component of the SWOT. This component
would take into account aspects of your organization that is doing particularly well. It need not
be anything tangible or definite. The strength of your organization could also be something that
is intangible such as the brand image of an organization or something which can be very easily
defined such as the organization’s unique selling proposition (USP) of a specific line of products
(Shewan, 2019). In other cases, it could also be the human resources of the organization; robust
leadership or a highly effective research and development team. Thus you identify the strength of
your organization.
SWOT ANALYSIS FOR BUSINESS 4
2.2 Weaknesses
Following the identification of the organization’s strengths, the next step would be to be
critical about oneself and identify and list out anything that you think would be the weakness of
your organization. Weakness does not refer to physical weakness here but rather it refers to
aspects of the organization that is pulling your organization back. Weaknesses could be anything
such as financial constraints, lack of skilled personnel, superior brand image of competitor etc.
Akin to strengths, weaknesses also are an innate aspect of your organization. Therefore, it would
help if you focus on resources, procedures, systems and people. Consider aspects that you needs
improvement and the kind of practices that you need to curb (Wang et al., 2014).
SWOT ANALYSIS FOR BUSINESS 5
2.3 Opportunities
it would not happen on its own, you need to identify the opportunity and seize it. Opportunities
would generally tend to emerge from situations that exist beyond your organization, and it
requires foresight on your part as to what might happen in future. Market or technology
developments can be one (Brad & Brad, 2015). For instance, in case there is a surge in demand
for a niche product that your organization can produce, that is an opportunity you can leverage.
But as mentioned, you need to be able to identify opportunities and harness it such that it makes
2.4 Threats
Lastly, the component of threat would comprise of anything that has the propensity to
make a negative impact on your business externally. These would include; problems within the
supply-chain, manpower shortage or changes in market demands etc. It is very necessary that
you anticipate threats and initiate appropriate action to negate the threat before it impacts you
and causes a loss to your business or thwarts your growth (Sarbah & Otu-Nyarko, 2014). To
identify threats, it might help if you try to list out the bottlenecks to your business such as
delivering your finished goods to the market, drop in quality of your products amongst others.
Further, you should always keep yourself abreast of the activities that are being carried out by
your competitors and modify your strategy to tackle that threat. Also there is the threat of new
governmental or trade policies so, you need to anticipate such threats to stay ahead of the
3.0 Conclusion
SWOT analysis is a tool that is being utilized within the domain of strategic management
for the past five decades. It has turned out to be a highly treasured tool as far as planning and
decision-making is concerned. While there are a number of tools for analysis that have been
utilized during the strategic management process, over the years a technique that has been
extensively used is SWOT analysis. The use of SWOT helps in evaluating the external as well as
the internal environment of the organization and thereby lends support to situations where
strategic decisions are required. This technique can be applied in several areas that require
individual.
SWOT ANALYSIS FOR BUSINESS 7
References
Brad, S. & Brad, E. (2015). Enhancing SWOT Analysis with TRIZ-based Tools to Integrate
Systematic Innovation in Early Task Design. Procedia Engineering. [Online]. 131. pp. 616–
http://sosyalarastirmalar.com/cilt10/sayi51_pdf/6iksisat_kamu_isletme/gurel_emet.pdf.
Namugenyi, C., Nimmagadda, S.L. & Reiners, T. (2019). Design of a SWOT Analysis Model
and its Evaluation in Diverse Digital Business Ecosystem Contexts. Procedia Computer
https://linkinghub.elsevier.com/retrieve/pii/S1877050919314802.
http://www.scirp.org/journal/doi.aspx?DOI=10.4236/ojbm.2014.23029.
Shewan, D. (2019). How to do a SWOT analysis for your small business (with Examples).
%28with Examples%29.pdf.
Wang, X.P., Zhang, J. & Yang, T. (2014). Hybrid SWOT Approach for Strategic Planning and
Formulation in China Worldwide Express Mail Service. Journal of Applied Research and
SWOT ANALYSIS FOR BUSINESS 8
http://www.jart.icat.unam.mx/index.php/jart/article/view/229.