An analysis of a companys strengths, weaknesses and the opportunities and threats that surround it.
No matter the size of your organization or how established it is, a company SWOT analysis is a highly valuable tool for developing your business strategy and prioritizing business activities and resources. Show
But if you’ve heard businesspeople throwing around the term SWOT and you have no idea what the heck it means, don’t worry – you’re not alone. And don’t be intimidated. A company SWOT analysis might sound complex, but it’s just an acronym for a very simple exercise that won’t cost you anything except a few hours of your time and some thoughtful consideration. SWOT stands for: Strengths Weaknesses Opportunities Threats So how do you do a company SWOT analysis? The quadrantsTo start, you’ll need to create a square that looks like the one below, in which strengths, weaknesses, opportunities and threats are divided into four quadrants. You can use any media you prefer, such as:
Whatever you opt to use, the point is that the image is visible and accessible for everyone in a group setting – whether in person or online – and provides ample space to add notes. Now let’s explore the best approach to fill each quadrant. Internal factorsThis is what’s happening inside your company – the things that you exercise some control over and can change with the appropriate strategy and effort. StrengthsAsk the group: What are we doing currently that is making our company successful? What do we want to continue doing – and perhaps emphasize more? What makes a customer choose us over competitor? Examples of strengths:
WeaknessesWhat do we need to change, improve or stop doing? What internal threats put our future at risk? Examples of weaknesses:
External factorsThese are things that originate outside your company. Unfortunately, you have minimal – if any – control over these factors. But you can plan ahead and be prepared – even for the unexpected. OpportunitiesWhat can you capitalize on to potentially gain market share or boost profits? What circumstances can you leverage to your competitive advantage? Examples of opportunities:
ThreatsWhat are the environmental factors that could cause our business operations or project to suffer? What do we need to be prepared for, in terms of having a mitigation plan? Examples of threats:
How a company SWOT analysis worksA company SWOT analysis is really just a large brainstorming session. Not so complicated, right? Much of how this process plays out and how many rounds of brainstorming it takes is up to you and your company’s working style. It could take place in person or online. And the length is open ended, though it shouldn’t take more than a few hours. Focus more on productivity and the quality of ideas. Generally, this is what happens:
At the end of the session, you should have a complete, agreed-upon list of strengths, weaknesses, opportunities and threats in the designated quadrants. A few additional tips:
When should it happen?It depends on the goal of
this exercise. Some examples are:
If you would like to examine a new idea or project, this is one-time exercise. If it is business plan, then your company SWOT analysis should happen on a regular basis – ideally, at least once per year. SWOT analysis isn’t intended to help you respond immediately to situations. It focuses on mid- to long-term strategies. Who should participate?Leadership at all levels of your organization, from the founders and C-suite down to managers of individual departments, can be involved in your company SWOT analysis. Ideally, the most senior leadership manages the activity and has the final word on the SWOT list, because they’re responsible for guiding your company and have the most expansive view of the entire organization. Who else should be involved? Anyone with a perspective of your company that could be relevant. This may include:
Be creative and strategic in selecting attendees. You want to capture the most accurate, comprehensive view of your organization. Someone with a differing perspective or opinion from yours – even a trusted voice outside your organization – can think of strengths, weaknesses, opportunities and threats that you may have otherwise overlooked entirely. They can also persuade you to change your opinion and approach an issue differently. What do you do with this information?As mentioned previously, a company SWOT analysis is an exercise that aids in annual planning and strategy development, and prioritization of business activities and resources. This isn’t something that is typically shared throughout an organization in its raw form. Instead, the themes produced in the SWOT analysis inform and are weaved into:
Benefits of performing a company SWOT analysisA SWOT analysis has been used by corporations and small business since the ’80s and is still a relevant and practical tool. If you haven’t used it before, give it a try. You might be amazed by the results produced by this simple exercise.
Summing it all upWhen done right, SWOT analysis will help you visualize what you’re doing well, what you need to change and which scenarios you need to look out for – the situations you can leverage to your advantage and the situations you need to safeguard your company against. Armed with this intelligence, you can prioritize and take the most optimal steps to assure your company’s success. For more information on planning for business scenarios and preparing your organization for the future, download our free magazine: The Insperity guide to managing change. How do you Analyse a company's strengths weaknesses opportunities and threats?SWOT Analysis helps you to identify your organization's Strengths, Weaknesses, Opportunities, and Threats. It guides you to build on what you do well, address what you're lacking, seize new openings, and minimize risks. Apply a SWOT Analysis to assess your organization's position before you decide on any new strategy.
What are the company's strengths weaknesses opportunities and threats?SWOT analysis is a framework for identifying and analyzing an organization's strengths, weaknesses, opportunities and threats. These words make up the SWOT acronym.
What is a SWOT analysis in business?A SWOT (strengths, weaknesses, opportunities and threats) analysis looks at internal and external factors that can affect your business. Internal factors are your strengths and weaknesses. External factors are the threats and opportunities.
How do you analyze business strengths and weaknesses?How to Identify Your Company's Strengths and Weaknesses. Start with a SWOT analysis. ... . Consult with others. ... . Closely monitor customer complaints. ... . Match your business against the competition. ... . Join a peer advisory board.. |