SWOT analyis
NOTE:
STRENGTHS and WEAKNESSES are the internal factors that an organisation currently faces. OPPORTUNITIES AND THREATS are the external factors that an organisation is likely to face in the near future.
SWOT
Strengths,Weaknesses,Opportunities and Threats.
Threats
are the external factors that hinder the prospects of an organisation
Opportunities
are the external possibilities and prospects for future development.
Weaknesses
are the internal factors that are negative compared to competitors. these factors are likely to prevent or delay the business from achieving its organizational objectives.
Strengths
are the internal factors that are positive compared to competitors. e.g corporate image,highly skilled workers(These adv help the BS to better achieve its organisational objectives)
Swot analysis can be used to provide a good framework for :
1. Evaluating business proposals or ideas 2. Assessing opportunities for the development and survival of the organization. 3.Strategic Planning 4.Competitor analysis 5.Reviewing strategy 6.Risk assessment
Advantages of SWOT:
1.Completing a SWOT analysis can be quite simple and quick. 2.It can be used for a wide range of decisions, such as how to react to the threat of a competitor . 3.SWOT analysis helps to determine the organization's position in the marketplace and therefore aids formulation of corporate strategy for its long-term survival. 4.The SWOT framework encourages foresight and proactive thinking, rather than relying on emotional or intuitive feelings. 5.it can help reduce the risks of decision making by demanding objective and logical thinking.
SWOT analysis
is a popular analytical tool used to asses the internal strengths and weaknesses and the external opportunities and threats of an organisation or a decision.
Disadvantages of SWOT:
1. Critics of SWOT analysis argue that it is too simplistic and does not demand detailed analysis. 2.the self life of SWOT analysis is rather limited. 3.SWOT analysis is only useful if decision makers are open about the weaknesses and willing to act upon them. 4.SWOT analysis is not typically used in isolation.businesses are usually able to make better decisions if they have more information available.
