SWOT Analysis :: Business Analysis Process

cram AnalysisWhat is SWOT Analysis? SWOT epitome is a basic, straightforward model that provides direction and serves as a basis for the development of marketplaceing plans. It accomplishes this by assessing an placements strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities ( possible favor equal conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an grave step in planning and its value is often underestimated despite the simple mindedness in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity), or if it indicates an obstacle th at must be subordinate or minimize to achieve desired results (weakness or threat) (Marketing Strategy, 1998).Elements of SWOT AnalysisStrengths and WeaknessesRelative to market needs and competitors characteristics, a manager must begin to think in terms of what the firm can do closely and where it may nurture deficiencies. Strengths and weaknesses exist internally within a firm, or in make relationships between the firm and its clients. SWOT analysis must be customer poreed to gain maximum benefit, a strength is really purposeful totally when it is useful in satisfying the needs of a customer. At this point, the strength becomes a capability (Marketing Strategy, 1998).When writing down strengths, it is imperative that they be considered from both the view of the firm as well as from the customers that argon dealt with. These strengths should be realistic and not modest. A well-developed listing of strengths should be able to answer a couple of questions. What are the firms advantages? What does the firm do well (PMI, 1999)?A customer-focused SWOT may also uncover a firms potential weaknesses. Although some weaknesses may be harmless, those that relate to specific customer needs should be minimized if at all possible. In addition, a focus on a firms strengths in advertising is promotion is substantial to ontogeny awareness in areas that a firm excels in. This method not only evokes a positive response within the minds of the consumer, but pushes the weaknesses further from the finis making process (Marketing Strategy, 1998).Weaknesses should also be considered from an internal and external viewpoint. It is important that listing of a firms weaknesses is truthful so that they may be overcome as quickly as possible.