SWOT analysis is a relatively quick way to analyze the strengths, weaknesses, opportunities and threats of the organization.
The general purpose of a SWOT analysis is to examine the internal and external factors that help or hinder you from achieving each of your goals. Strengths (S) and weaknesses (W) are considered internal factors over which you have some control.
However, opportunities (O) and threats (T) are viewed as external factors over which you essentially have no control. In other words, the framework considers all the positive and negative factors inside and outside the company that affect success.
Steps to perform a SWOT analysis
To perform the SWOT analysis you need to define each of the variables that make it up, taking into consideration the following criteria:
Strengths are the qualities that allow us to achieve the mission of the organization, they are the basis on which continuous success can be achieved and maintained.
Strengths are the beneficial aspects of an organization or an organization's capabilities, including human competencies, process capabilities, financial resources, products and services, customer goodwill, and brand loyalty.
Examples of organizational strengths are huge financial resources, wide product line, absence of debt, committed employees, etc.
Weaknesses are the qualities that prevent us from fulfilling our mission and reaching our maximum potential; Weaknesses in an organization can be depreciation of machinery, insufficient research and development facilities, limited product range, poor decision making, etc.
Examples of organizational weaknesses are huge debts, high employee turnover, complex decision-making process, narrow product range, large waste of raw materials, etc. Weaknesses are controllable, they must be minimized and eliminated.
Opportunities are presented by the environment in which our organization operates, these arise when an organization can take advantage of the conditions of its environment to plan and execute strategies that allow it to be more profitable. Organizations can gain a competitive advantage by taking advantage of opportunities.
Opportunities can arise from the market, competition, industry / government, and technology.
The growing demand for telecommunications accompanied by deregulation is a great opportunity for new companies to enter the telecommunications sector.
Threats arise when conditions in the external environment jeopardize the reliability and profitability of the organization's business. The threats are uncontrollable; When a threat comes, stability and survival may be at stake.
Examples of threats are constantly changing technology; Increasing competition leading to overcapacity and massive price wars that reduce industry profits.
After collecting all the information for our analysis, we will proceed to empty it into a Word document or on a sheet of paper, dividing it into four parts and assigning each of the data to the document.
The SWOT analysis is one of the instruments that we will use to establish the strategies to implement for the development and growth of our organization.