SWOT Analysis - Strategic PlanningHuman Resource
What we are going to cover
- What is SWOT Analysis?
- Why perform the SWOT Analysis?
What to do to be successful in any business? The obvious answer is Strategic Planning. Strategic Planning should be there. There are numerous tools and techniques for Strategic planning but one simple and effective framework is SWOT Analysis, it's also known as SWOT Metrix.
2. What is SWOT Analysis?
SWOT Analysis is one of the most commonly used tools to assess the internal and external environment of the company.
SWOT Analysis is a part of the company's Strategic Planning Process and Decision Making Process
SWOT Analysis can be done for an entire organization, Individual, particular Project, Product, industry.
SWOT Analysis plays a significant role in Decision making as it introduces opportunities to the company and it is the "Forward-Looking Bridge" to generate Strategic alternatives.
SWOT Analysis is a Two-by-Two grid form, in this diagram, in particular, each quadrant identifies strengths, weaknesses, opportunities, and treats.
3. Why SWOT Analysis?
Another question is why SWOT Analysis is significant?
Undoubtedly, the answer is SWOT Analysis allows you to identify
- What your organization does well
- Where it could improve
- What Challenges your business is facing.
- What Opportunities are available and it would be helpful in upcoming years
After Identify these things you would be able to-
- Develop and implement Roadmaps
- Timelines for potential Solutions
- Budgetary plans
- Manpower Requirement
- Mid to long term strategic planning
I guess it's enough to understand the SWOT Analysis let's move ahead with the explanation of SWOT Analysis
SWOT Analysis Framework has two dimensions.
- INTERNAL FACTORS
- EXTERNAL FACTORS
1. INTERNAL FACTORS
Internal factors are the strengths and weakness
- Strengths ( Internal Positive Factor)
- It gives the business its competitive advantages. Weakness (Internal Negative Factor)
- It gives the business its weak points that a company needs to overcome to improve its performance.
Internal Factors include:
- Company Culture
- Company Image
- Organizational Efficiency
- Operational Capacity
- Brand Awareness
- Market Share
- Financial Resources
- Key Staff
- Organization Structure.
External factors are Opportunities and Threats.
Opportunities (External positive Factor)
- It is an element that the company can see in the outside environment where the company can see what it could pursue in future to generate revenue.
Threats (External Negative Factor)
- It's the element in the External environment that can prevent achieving its Goals or its mission or generate revenue or creating value
External Factors include
- Economic Environment
- Government Rules and Regulations
- Market Trends
To know more about the SWOT Analysis, kindly read my upcoming Blog.