SWOT Analysis. What is this?

June 24, 2018 Hansie Britz

 

 

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A Swot Analysis is a simple but powerful tool helping businesses to develop their business strategy, whether a start=up business or an existing company.

Strengths and Weaknesses – are internal to a company – things that you have some control over and can change.

Opportunities and Threats – are external to a company – things that are going on outside your company, in the larger market and that you do not have control over.

HOW TO DO A SWOT ANALYSIS

Doing a SWOT Analysis is similar to a brainstorm session, with right and wrong ways to run them. A good idea is to give everyone a pad of “sticky – notes” and have them quietly generate ideas on their own to start things off. This will prevent group-think and ensures that all voices are heard.

After about 15 min of private brainstorming, put all sticky-notes up on the wall and group similar ideas together. Once all ideas are organized, it is time to rank the ideas according to their importance. The list is now up for discussion and debate, and someone in the room should be able to make the final call on the priority (usually the CEO) but could be delegated to someone else.

SWOT ANALYSIS EXAMPLE

 STRENGTHS

 WEAKNESSES

Management Skills of owner.

Lack of Financial Skills.

Strong Entrepreneurial spirit of the business owner.

Lack of comprehensive accounting system.

OPPORTUNITIES

THREATS

The existence of untapped markets.

Higher Eskom tariffs may affect the business.

Opportunity to enhance sales via internet marketing.

Threats from well-established competitors.

FURTHER ACTION:

With the SWOT Analysis completed, you’re ready to convert it into real strategy. The first step is to look at your strengths and figure out how you can use those strengths to take advantage of your opportunities. Then look at how your strengths can combat the threats that are in the market. Use this list to produce a list of actions that you can take.

With your action list you can look at your company calendar and start placing goals (or milestones) on it. What exactly do you want to accomplish in each ca lender quarter (or month) moving forward. You also want to do this by analyzing how external opportunities might help you combat your own, internal weaknesses.

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