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SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
The SWOT analysis is a process for integrating data and analyzing its impact on your
organization. The data used in the SWOT analysis is drawn from facts and from key
takeaways or insights. This is an excellent tool for facilitating strategic thinking and
planning. You should complete a SWOT analysis document for your organization and
one for each of your major competitors. Comparing your organization’s SWOT with
those that you have prepared for competitors can be very insightful in determining your
strategies.
Strengths and Weaknesses are internal to the organization.
Strengths: What a company does best. Assets and internal resources that can
be leveraged to achieve objectives.
Weaknesses: Internal restrictions or deficiencies that limit what a company can
accomplish.
Strengths and Weaknesses are derived from the analysis of the organization’s internal
situation. The following areas should be analyzed to develop the strengths and
weaknesses:
• Human resources
• Organization dynamics (including cross functional resources and
relationships)
• Financial Statements and profitability
• Product or service attributes and quality
• Effectiveness of delivery of products or services
• Internal processes
• Other relevant internal factors and categories.
Opportunities and Threats are external to the organization.
Opportunities: External circumstances, events or situations that offer good
chances to achieve objectives leveraging our strengths. Where can
we grow our business? Opportunities can be in the present and in
the future.
Threats: External forces, factors or situations that could create problems for
us, harm our organization or endanger our ability to achieve
objectives. What could get in our way? Threats can be in the
present and in the future.
