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SWOT Analysis is Multiple Choice Pinpointing the Company's

SWOT Analysis

The name SWOT is derived by arranging the first characters of the words. SWOT rests on these four foundations to analyse by multiple-choice pinpointing the status and prospect of the company. It finds answers to multiple-choice checklist related to the four basic elements of the company as stated below:

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Strengths: This defines the inherent parts and resources necessary to gain a successful outcome.

Weaknesses: Internal inherent resources that hinder against a successful outcome.

Opportunities: External factors that the entity can capture in favour of the company.

Threats: External factors that could harm the interests of the success of the company.

SWOT analysis in the form of a matrix is often adopted to organize items that are identified under each of the above categories. It is presented in the form of a square divided into four quadrants, each representing one of the above four constituents. Management of the company identify and list out specific strengths and includes in the foremost quadrant, weaknesses are presented in the second one. Then opportunities are placed in the third quadrant and, the last threats are placed in the fourth one.

The Procedure Followed in Carrying Out SWOT Analysis

A SWOT analysis generally needs a decision-maker who is normally the CEO of the organisation, who needs to formulate the objective of the company and desire to achieve in its favour.

From there, the decision-makers prepare a checklist pinpointing the strengths, opportunities, weaknesses and threats.

Various procedures exist to guide the decision-makers to go ahead of the SWOT analysis, which often uses a checklist or a questionnaire covering each of the four elements, as stated above.

Sample of a SWOT 

The ultimate yield from a SWOT analysis is obtained in the form of a chart or list related to characteristics of the subject. The following is a sample of a SWOT analysis carried out on an imaginary employee of a retailer:

  • Strengths: The employee who is selected for the study has good communication skills, reports his shifting duty on time, capable of handling a customer in a good manner. He keeps good coordination with all other departments; he is in sound health, physical strength, and good availability.
  • Weaknesses: He is a chain smoker, takes lengthy breaks, has the low technical skill and spends a long time in chatting.
  • Opportunities: He is posted in the storefront and greet customers and assist them in the selection of the good and choice able product, can achieve good customer satisfaction, and assist customers till the end of the purchase with items and ensure buying confidence.
  • Threats: Some times, he is not available in his place at peak business hour due to taking unusual breaks for smoking. He sometimes spends time unnecessary per customer after the sale as well as waste time in chatting with other colleagues.

Usage of SWOT Analysis

SWOT analysis is a highly beneficial tool for a company which use and help any entity, irrespective of the category of the organization or an individual, to get insight into its ongoing and future position in the business sector or against a planned target.

The idea is due to the reason that entities can visualise competitive leverage and positive business development. The SWOT analysis also takes care of prospects, as well as potential difficulties and related problems. By executing it, the company can be able to plan to capitalize positively and can address the deficits.

Alternatively, by identification or pinpointing of the SWOT factors, the decision-makers should be in a better position to determine if an initiative, project or product will yield a profit on pursuing it and what are the factors necessary to make it successful. SWOT analysis is taken up by an organisation to match its resources to the competitive business environment in which it is functioning.

SWOT Analysis: Pros and Cons

The SWOT analysis can benefit a decision-making process

It conveys a visual representation of multiple issues that are likely to impact the business, project, initiative or individual to achieve its objective.

SWOT analysis carried out in a wrong way can result in a skewed perspective. In addition to that, because it captures only the factors at a definite point in time and doesn't consider the fact that how those factors could change in the long run.

It can yield best-of-breed solutions to drive 'fast data' and revenue at Red Wing Shoes to a business house

Business Mentor: It can act as a mentor for IT-related Business Strategy Planning


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