4. SWOT Analysis
Think Point
Think about how you could use this tool in your personal life to better grow your strengths, reduce the effects of your weaknesses, take advantage of the opportunities that present themselves to you and how you could mitigate the effect of threats facing your personal life.
Below is a little more information on these four aspects.
Strengths are characteristics (aspects) of the business, or business team that give it an advantage over other.
Weaknesses (or limitations) are characteristics that place the team at a disadvantage to others.
Opportunities are external chances to improve performance (e.g. make greater profits) in the environment.
Threats are external elements in the environment that could cause trouble for the business or project.
Case Studies
Watch the following video to gain more insight into the meaning of a SWOT analysis:
Tasks
While working through this example, prepare your own SWOT Analysis in the appendix at the end of this module.
When using SWOT analysis, be realistic about the strengths and weaknesses of your organisation. Distinguish between where your organisation is today, and where it could be in the future. Also remember to be specific by avoiding grey areas and always analyse in relation to the competition (i.e. are you better or worse than your competition?).
Finally, keep your SWOT analysis short and simple, and avoid complexity and over-analysis since much of the information is subjective (based on opinion). Thus, use it as a guide and not a prescription.
Once your SWOT Analysis is completed, you will have to do the following:
- Explain what you will do to grow or increase the strengths of your business. Example: I will send staff for training in specific aspects of the business.
- Explain how you are going to overcome your weaknesses. Example: I will improve customer relations by using various techniques.
- Explain how you will take advantage of the opportunities. Example: I will tend to all customer needs.
- Explain how you will deal with threats. Example: I will secure the business to prevent theft by installing security gates and burglar bars.