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Organization Theory Behaviour

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An Explanation of Swot Analysis And Why Your Business Needs It.

SWOT analysis or 'position' analysis is a crucial exercise that all businesses should undertake at regular intervals, whether they are new or old.
By: Elizabeth Cromwell Published Date: 06-28-2010

SWOT analysis or 'position' analysis is a crucial exercise that all businesses should undertake at regular intervals, whether they are new or old. It is basically a critical appraisal of the Strengths and Weaknesses, Opportunities and Threats in relation to the internal and environmental factors affecting a business.

SWOT very simply stands for Strengths, Weaknesses, Opportunities and Threats, and the easiest form of SWOT analysis is to take a sheet of paper or Excel spreadsheet and head four columns with these four categories. Once you have done this you can begin to list things under each heading; giving you an honest in-depth analysis of your business.

By undertaking a SWOT analysis a business will be able to prepare much better short and long term plans. It will also allow them to identify gaps between their actual and desired performance and aid them in closing these gaps. It is however important that you are completely honest when it comes to the negative parts of your examination for the SWOT to be an effective tool.

Let us have a look at the various elements that make up SWOT analysis in more detail.

These are the things that your business does well. It may be that the marketing of your organisation is better than your competitors' or your product is more advanced. Whatever these attributes are, list them down under this heading.

This is an area where you will need to be very truthful withy yourself....

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