SWOT AnalysisHome » Goal Setting » Business Goals » SWOT Analysis
By Julie Welch SWOT analysis is a business tool utilized to evaluate all components of an organization during the strategic planning process. Businesses should walk through the strategic planning process at least annually to effectively determine the direction to steer the organization. Once a business owner or director can evaluate the strengths, weaknesses, opportunities and threats of an organization, they can determine the appropriate focus and direction needed to achieve the desired business results. To complete a SWOT analysis, business leaders should create a T-chart, labelling each of the four components as strengths, weaknesses, opportunities and threats, noting relevant organizational examples within each category as outlined below. While leaders can perform a SWOT analysis on individual business units, they can also evaluate all components independently of one another during a brainstorming session with other department head or business leaders. StrengthsStrengths refer to the factors or characteristics which give an organization their competitive advantage. Examples of strengths can include: Intellectual property An organization should consider the characteristics which distinguish themselves from the rest of the markets competition. WeaknessesThe absence of strength could be considered a weakness within a business. Example weaknesses could include: Lack of intellectual property registration or legal protection Identifying weaknesses allow you to work proactively to address them before them become threats. OpportunitiesListed opportunities should include anything which could create a new opportunity for profit or growth. Example opportunities can include: Fulfilling a customer need by launching a new product or service Consider opportunities for business expansion during a brainstorming session with your leadership team. ThreatsAnything which poses a potential threat to the continuation of a businesss operation should be listed within this section of the SWOT analysis. Example threats can include: Consumer trends shifting away from your core products and services Businesses showing sustainability potential are those which are able to thwart threats before they develop. In additional to annual strategic planning sessions to review the SWOT data, business leaders should meet regularly to review and discuss ongoing progress. These ongoing meetings offer the opportunity to modify direction, increasing the opportunity for achieving desired business results. Armed with SWOT analysis information, business leaders can work proactively to avoid derailing threats, enhance opportunities and leverage business strengths.
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