SWOT ANALYSIS

. ‡ It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.‡ SWOT analysis is a strategic planning method used to evaluate the strength Weaknesses. Opportunities. and Threats involved in a project or in a business venture.

‡ The technique is credited to Albert Humphrey. . who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. ‡ A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model.

‡ Threats: external elements in the environment that could cause trouble for the business . ‡ Opportunities: external chances to make greater sales or profits in the environment. ‡ Weaknesses: are characteristics that place the firm at a disadvantage relative to others.‡ Strengths: characteristics of the business or team that give it an advantage over others in the industry.

. ‡ First. given the SWOTs.‡ Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. the decision makers have to determine whether the objective is attainable. If the objective is NOT attainable a different objective must be selected and the process repeated.

Matching and converging ‡ Another way of utilizing SWOT is matching and converting. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. Matching is used to find competitive advantages by matching the strengths to opportunities. . If the threats or weaknesses cannot be converted a company should tryto minimize or avoid them. An example of conversion strategy is to find new markets.

Internal and external factors ‡ The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. ‡ External factors The opportunities and threats presented by the external environment to the organization. SWOT analysis groups key pieces of information into two main categories: ‡ Internal factors: The strengths and weaknesses internal to the organization. - . These come from within the company's unique value chain.

SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations. SWOT analysis may also be used in creating a recommendation during a viability study/survey.Use of SWOT analysis The usefulness of SWOT analysis is not limited to profit-seeking organizations. governmental units. . and individuals.

. ‡ SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business and environmental factors.Corporate planning As part of the development of strategies and plans to enable the organization to achieve its objectives. then that organization will use systematic/rigorous process known as corporate planning.

For example. it may tend to persuade companies to compile lists rather than think about what is actually important in achieving objectives. for example. . weak opportunities may appear to balance strong threats. It also presents the resulting lists uncritically and without clear prioritization so that.weakness of SWOT ANALYSYS ‡ SWOT analysis is just one method of categorization and has its own weaknesses.

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