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Swot Analysis and Reality

In: Business and Management

Submitted By cristobal
Words 1134
Pages 5
To what extent do you think that SWOT analysis are translated to reality and made real?

Many managers and academics criticize or don’t even recognize the SWOT Analysis as a serious tool. According to many, it is a ‘low-grade’ analysis. Here below are the main flaws identified: * Excessive lists of strengths, weaknesses, opportunities and threats; * No prioritization of factors; * Factors are described too broadly; * Factors are often opinions not facts; * No recognized method to distinguish between strengths and weaknesses, opportunities and threats.

Therefore the following guidelines in my opinion are very important in order to be able to do a successful SWOT analysis. These guidelines eliminate most of the above-mentioned SWOT limitations and improve its results significantly: * Factors have to be identified relative to the competitors as this allows you to specify whether the factor is a strength or a weakness. * List between 3 – 5 factors for each category. This prevents creating too short or endless lists. * Factors must be clearly defined and made as specific as possible. * For example, firm’s strength is: strong brand image brand image valued at $10 billion, which is the most valued brand in the market (very good). * Rely on facts not opinions by finding external research analysis information and/or involve people who could provide an unbiased opinion. * Factors should be action orientated. * For example, “slow introduction of new products” is action-orientated weakness.

In order to strengthen the SWOT analysis exercise we have to prioritize the identified factors, because without prioritization, some factors might be given too much or too little emphasis and the most relevant factors might simply be overlooked. The aim therefore is to develop a more advanced SWOT in...

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