SWOT and Strategic Planning
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The concept of SWOT Analysis is commonly used for strategic planning. It functions by looking at the opportunities, threats, strengths and weaknesses involved in a potential project under consideration. It is sometimes often called a WOTS or TOWS analysis. There's two varieties of elements associated with conducting a swot analysis:
Internal Factors: these include factors internal within the organization - so this refers to strengths and weaknesses. External Factors: examples of these are factors which are outside of the business - opportunities / threats.
We carry out a SWOT because it allows us to line up our capabilities to the environment where the firm functions. Let's now briefly examine each factor.
Strengths: Characteristics of the firm or team that give it an advantage above others in the industry. Weaknesses: These are properties that put the company at risk. Opportunities: These are external chances to make greater revenues in the environment. Threats: These are external elements that could potentially adversely influence the company.
So that is the basic definitions out of the way. Let's examine some simple queries you could ask to help you in discovering each of the factors.
Here are a few questions to help you recognize your advantages. Do you have strong patents? Do you have a strong brand? Do you have any economies of scale?
Here are a few questions you can ask to help you identify your weaknesses. Do you have a harmful reputation? Are you lacking brand strength? Have you got a higher cost structure than your competitors?
Here are some questions to help you determine the opportunities. Are presently tight regulations about to be loosened? Is new technology coming? Are trade barriers being removed?
Here are a few questions you can ask to help you determine the hazards you face. Are trade barriers increasing? Are your customer trends showing that they are starting to move to competitors products for some reason? Are new limitations about to be forced upon your organization?
These are only a few of the questions you should ask to assist you to in your SWOT analysis. Probably the greatest strategies to increase the questions you will raise and the quality of the answers is to execute a swot as part of a brainstorming session with your co-workers. Once you've recognized all of your factors the next phase is to cooperate and get the best combination. By this I mean that you have to capitalize on prospects which are harmonized to the strengths though taking defensive action against weaknesses.
Sometimes the most effective way isn't to follow the most apparent opportunity. By thinking about things in light of your strengths you may well be free to build a situation of increased competitive advantage that you just couldn't by pursuing by far the most lucrative possibility
Article Source: Articlelogy.com
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