BY MARSHAD BARRY
Today in the business world many will aware of SWOT analysis. But using this more effectively will be helpful to your business development. This method was introduce by Albert Humphrey of the Stanford Research Institute, during a study conducted to identify why corporate planning consistently failed in the 1960’s. Since then this analysis became one of the most useful tool to develop the business. This analysis all about is a compilation of your company’s strengths, weaknesses, opportunities and threats. Its main objective is to critically analyze of factors involved in decision making in business towards the growth of the business. In the process of running a successful business this method has to use regularly , analyse your processes to ensure you are operating as efficiently as possible.
Once you have done the SWOT analysis you will be equipped with good strategy for your bushiness prioritizing the work that you need to do to grow your business and it will focus your business in new ways and from new directions depending on your strengths and weaknesses and the possibilities of you can leverage those to take advantage of the opportunities and threats that exist in your market.To make this effective key decision makers of the company such as founders , directors and senior mangers has to involved.
When it comes SWOT analysis , for the existing business it will help to assess their present status of the business and identify the strategies to move forward , since the business environment constantly change it is better do this analysis annually . For startups this analysis help as the business planning process and assist you to start off on the correct path indicating the direction that you wanted to reach.
To do a proper SWOT analysis you need to gather employee from different part of the company who will belong to different departments and they may have different perspective to make this analysis successful and effective . This is almost similar to a brainstorming session to know their ideas and how useful it can be and its part of idea generating too. Once gather all the information it can be prioritize to create an excellent analysis.
To create an effective SWOT analysis you may need look in these areas
Strengths : This is an internal factor that are within in your control and consider few ares such as what kind business process will suit the company , what are the available recourse such as knowledge, education, network, skills, and reputation and physical assets as customers, equipment, technology, cash, and patents and importantly what competitive advantages do you have over your competition?
Weaknesses :These are the negative factors that detract from your strengths and to be improve to become more competitive.In this factor you need to looking to what business processes need to improve and is there any gaps in the team.
Opportunities : These are external factors in your business environment that are likely to contribute to your success. This will help to look in to the market trends which can adopt to improve your business and areas where the company may be able to take advantage of to grow the business
Threats : This is an are external factors that you have no control over and to taken in to the consideration that, do you have potential competitors who may enter your market? Also is any consumer behavior changing in a way that could negatively impact your business?
