How to Use Business SWOT Analysis
Business SWOT Analysis
Business SWOT analysis is a key element of
strategic planning
that business leaders use to evaluate important decisions that they make for their company. If your company is not using business SWOT analysis to evaluate decisions, you are putting the future of your business at risk. SWOT is an acronym for Strengths, Opportunities, Weaknesses, and Threats. If your company has to make a strategic decision, the steps in this article will help you choose the right decision through the use of business SWOT analysis.
Instructions
1. Step 1
Begin Business SWOT analysis by clearly stating an objective for your company, and the strategy that you plan to use in order to reach the objective. The following steps will help you to evaluate whether your chosen strategy will be likely to lead your company to the desired objective.
2. Step 2
Create a list of the strengths that your business has which will be beneficial to the completion of the objectives. If your business has a specialized skill, an important ally, or a key business advantage that it can bring to bear, include all of these on the list.
3. Step 3
Next, business SWOT analysis requires that you create a list of your company's weaknesses that would prevent it from successfully implementing your chosen strategy. Include things like lack of a crucial skill set or inadequate computer systems, technologies, etc.
4. Step 4
Next create a list of external opportunities that are available to your company to increase the likelihood of the strategy succeeding. You should include considerations such as employing new technology or hiring experts in the field.
5. Step 5
List all of the external threats that would imperil the successful completion of your objective. If you have a formidable competitor vying for the same goal, or even if weather conditions could put your chosen strategy in jeopardy, you should include these factors.
6. Step 6
Take another look at your original strategy to evaluate which changes need to be made in light of the four business SWOT analysis lists that you made in the above steps.
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