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What is a SWOT analysis?

Strategic Planning

Strategic planning and disciplined effort is what organizations need to produce decisions and actions that define and direct their purpose, especially with regard to the future. Through it, resources are focused on a limited number of goals, which helps the organization focus its efforts, to ensure that its members work to achieve the same goals, and to evaluate and adjust its direction in response to the changing environment, and it also raises a series of questions that help the organizational leadership to test experience, and test assumptions, as it is It is necessary to know what is meant by SWAT analysis, collecting and integrating information about the present, and the environment in which the organization will operate in the future.

What is a SWOT analysis?

What is meant by SWAT analysis is a compilation of strengths, weaknesses, opportunities and threats in the company, as the main objective of the analysis of strengths, weaknesses, opportunities and risks; It is to help organizations develop full awareness of all the factors involved in making a business decision, as it is done before committing to any type of company action, so SWOT analysis is used to discover recommendations and strategies, focusing on taking advantage of strengths and opportunities to overcome weaknesses and threats It is a planning process that helps to overcome challenges, determine what they lead to achieving, and develop a full awareness of all the factors involved in making a business decision.
What is a SWOT analysis?
What is a SWOT analysis?

Knowing what a SWOT analysis is helps to know if there are strengths that a business can build on to improve its competitive position, weaknesses that should be minimized, opportunities to pursue, threats that need to be protected, strengths and weaknesses relate to the capabilities and internal structure of the company, while Opportunities and threats relate to the environment in which they operate. This tool informs management of potential actions that can be taken to improve the company's position. Examples of the various elements of a SWOT analysis include:
  • Strengths: Strong brand ownership, patent or copyright protection, unique distribution network, extraordinarily low cost structure, and long-term access to rare raw materials.
  • Weaknesses: High product failure rate, poor order fulfillment rate, lack of patent protection, fixed overhead costs, and facility subject to seasonal flooding.
  • Opportunities: An imminent change in regulatory approvals, a new technology that can be used to improve products, and a potential new market that is not being addressed by any competitors.
  • Threats: a decrease in demand due to changing customer demographics, the imminent opening of the market to foreign competitors due to new business deals, the emergence of alternative low-cost products.
Knowing what a SWOT analysis is helps to identify strengths, weaknesses, opportunities and threats related to business competition or project planning. Questions to generate meaningful information for each category to make the tool useful and to determine its competitive advantage. Strengths and weaknesses are often internally linked, while opportunities and threats usually focus on the external environment. The name is an acronym for the four parameters that the technology examines, which is meant by the following:
  • Strengths: The characteristics of the business or project that give it an advantage over others.
  • Weaknesses: Business characteristics that put the business or project at a disadvantage relative to others.
  • Opportunities: elements in the environment that the project or project can exploit to its advantage.
  • Threats: Elements in the environment that can cause problems for a business or project.

The need for SWOT analysis and its uses

Using internal and external data, SWOT analysis can tell the company where it needs to improve internally, as well as help develop the strategic plan. Using internal and external data, knowing what SWOT analysis is is a technology that can guide business. Towards more successful strategies, apart from those that have been or are likely to be less successful, it is a great way to guide entrepreneurship strategy meetings, and the following will explain the need for SWOT analysis and its uses:

The need for SWOT analysis

After knowing what a SWAT analysis is, a strengths, weaknesses, opportunities, and risks analysis should be used before committing to any kind of actions taken by the company, whether it is discovering new initiatives, renewing internal policies, or considering a plan or changing it halfway through its implementation. Sometimes it is wise to conduct a general SWAT analysis just to see the current business landscape, so that organizations can improve the management of business processes as needed, as it shows you the main areas in which the organization is operating optimally, as well as the processes that need tuning, thus Ways can be discovered to improve or eliminate weaknesses in the company and take advantage of its strengths.

SWOT analysis uses

After knowing what SWAT analysis is, it must be known that its usefulness is not limited to profit-seeking organizations, but the analysis of strengths, weaknesses, opportunities and risks can be used in any case of decision-making when determining the goal, and for example, non-profit organizations For profit, government units, and individuals, SWOT analysis can also be used in pre-crisis planning and preventive crisis management, and SWOT analysis can also be used to create a recommendation during a feasibility study.

SWOT Analysis Factors

 SWOT analysis aims to identify the main internal and external factors that are important to achieve the goal, and this is what is meant by SWOT analysis, as SWOT analysis groups the main pieces of information into two main categories that explain all the factors used in SWAT analysis, which are as follows:
  • Internal factors: The inner strengths and weaknesses of the organization. The analysis may look at the internal factors as strengths or weaknesses, depending on their impact on the organization's goals.
  • External factors: opportunities and threats presented by the external environment of the organization. External factors may include macroeconomic issues, technological development, legislation, social and cultural changes as well as changes in the market. Results are often presented in the form of a matrix.

SWOT Analysis Characteristics

After knowing what a SWAT analysis is, which focuses on analyzing strengths, weaknesses, opportunities, and risks, allowing companies to identify the forces that affect a strategy, business, or initiative, knowing these positive and negative elements can help companies communicate more effectively about the parts of the plan. SWOT analysis, people usually create a table divided into four columns to list each influential element side by side for comparison, so it is necessary to know the characteristics of SWOT analysis, which are as follows:

properties of internal factors

Knowing what a SWAT analysis is does not exclude knowing its characteristics, as internal factors refer to strengths and weaknesses, which are the available resources and expertise, and once the risks are identified, it can then be determined whether it is more appropriate to eliminate the internal weakness by allocating the company's resources to solve the problems , or to reduce the external threat by abandoning the threatening business area and dealing with it after strengthening. The maximum crucial inner elements are the following:
  • Financial resources from financing, sources of income and investment opportunities.
  • The physical resources of the site, plant and equipment.
  • Human resources of employees, volunteers and the target audience.
  • Access to herbal resources, trademarks, patents and copyrights.
  • Current operations of personnel software, department hierarchy and software systems.

characteristics of external factors

After knowing what SWAT analysis is, it is necessary to know the characteristics of the external factors that affect each company, organization or individual, whether these factors are directly or indirectly related, it is important to note and document each of them, external factors are the things that cannot be controlled Among the examples are the following:
  • Market trends of new products, technological developments and changes in public needs.
  • Economic trends from local, national and international financial trends.
  • Funding from legislature donations and other sources.
  • demographics.
  • Relationships with suppliers and partners.
  • Political, environmental and economic regulations.

SWOT Analysis Tools

Knowing what SWAT analysis is helps critical thinking in business, by analyzing strengths, weaknesses, opportunities and threats, it is possible to obtain a better understanding of the business and the challenges faced by this business. And general questions and guidelines for conducting a SWOT analysis. Among the most important tools of SWAT analysis are the following:
  • Smartsheet.
  • MindTools.
  • Canva.
  • WikiWealth.
  • IvoryResearch.
  • Microsoft Office.

SWOT Analysis Parameters

 What is meant by SWAT analysis is that it is a starting point for discussion, as it presents a snapshot of the company at a particular moment in time. The analysis may obscure the fact that the internal and external environment is changing rapidly. Its rapid design without critical thinking may lead to a distortion of strength, weakness, opportunities and threats within the organization’s perimeter. The company has become preoccupied with one strength, such as controlling costs, it can neglect its weaknesses, such as product quality, other limitations include developing a SWOT analysis just to advocate for the goals and objectives that were previously set, as this misuse limits the possibilities of brainstorming and identifying barriers, The design of strengths, weaknesses, opportunities and risks analysis by one or two workers in the community is also limited to the reality of the forces.

How to do a SWOT analysis

After knowing what SWAT analysis is, and although SWOT analysis is commonly used as a tool for business planning, it is also useful for personal development, as SWOT analysis compares internal strengths and weaknesses with external opportunities and threats to develop an action plan, and in the following it will be explained how Doing a SWOT analysis:
  • A SWOT analysis is organized in the form of a matrix or table with two rows and two columns.
  • The first row represents the internal factors of the organization, where the strengths are listed in one column and weaknesses in another, and the factors that must be taken into account are the following:
  1. Financial position of income, cash flow, debt, investments.
  2. market share.
  3. Relative skills of employees.
  4. Physical premises, location, and equipment.
  5. Assets such as patents or copyrights.
  • The second row represents the organization's external factors that cannot be controlled. Opportunities are indexed in a single column and threats in another. Factors to consider include:
  1. state of the economy.
  2. Market share and the ability to increase or decrease competition for products or services.
  3. The ability to retain or hire employees or contractors as needed.
  4. Organizational changes that may affect the business.
  5. ability to obtain financing; Changing interest rates, increasing loan requirements.
  • Fill in the boxes in the business table, according to the specific purpose of your SWOT analysis.

Building a corporate strategy using SWOT analysis

Knowing what SWAT analysis is shows that it is one of the popular analysis methods used in business, which can be applied to: locating the current market, validating a new business idea or even personal career development, and a strategy for the company can be built using SWAT analysis by following the following steps :
  • Identify the features in the company's internal and external environment. These features can be divided into four different categories.
  • Identify the important features of each category.
  • Assign a score to each feature and sort it according to a specific score, where a higher score means more importance to the pre-selected feature.
  • Choosing the appropriate scale, the easiest way is to set the scores between 1-100.
  • Ensure that the total score of all features in a given category equals 100.
  • define relationships between features; Determine whether some internal feature has an effect on an external feature.
  • Score calculation; By adding a degree of strength advantage to a degree of opportunity advantage for all pairs for which the relationship was determined to be present.
  • Summarize all the added points and get the final results for each pair of categories.
  • Compare the results, as each score represents the proposed strategy for the current situation, which is as follows:
  1. If the strengths and opportunities are the greatest, then the strategy must be aggressive.
  2. If strengths and threats hold the greatest degree, then the strategy should be diversification.
  3. If weaknesses and opportunities are the biggest points, then the strategy should be transformation.
  4. If weaknesses and threats are given the greatest degree, the strategy must be defensive.
  • Identify and work on the features that have the most impact for a particular strategy.
  • Create company goals and implement some actions that will reduce this weakness.
  • Do the analysis in a month or so, update it and check if the features from the previous SWAT are still there, and if the latest strategy recommendation is still valid.

Tips to improve SWAT analysis

The SWAT framework has been a marketing strategy since the 1960s. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It provides important insights into a brand’s product and positioning relative to its competitors. After knowing what a SWOT analysis is, when these insights are aligned with consumer insights, a message is created. A strong brand, where a purposeful brand message is one of the most important tools in a marketer's toolbox, because it provides the necessary focus and guidance to enhance creativity, avoiding common mistakes, as it will help provide the necessary guidance to identify areas for improvement, highlight the real benefits of the company, and guide decisions This is what is meant by SWAT analysis, and this is done using the following tips:
  • Accuracy: it is necessary to choose a goal that corresponds to the business objectives, and is directed towards the required category.
  • Conducting own research with competitors: When conducting research, marketers should make every effort to minimize and evaluate SWAT components from an entire market perspective.
  • Using the Porter Lens: The Porter Lens explores the threat of substitute products or services in the marketplace, the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants and the threat of competition between existing competitors.
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  • Robert steveson
    Robert steveson May 20, 2022 at 7:16 PM

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