SWOT Analysis 101
Contents |
Abstact
The SWOT analysis categorized as “Uncertainty” under how to anticipate if something happens is a versatile strategic planning tool used to assess an organization's internal and external factors. The SWOT analysis is a method of anticipating uncertainty, as it evaluates the strengths, weaknesses, opportunities, and threats.
The four elements of SWOT analysis include strengths, which are internal factors that give a competitive advantage, weaknesses, which are internal factors that hinder performance, opportunities, which are external factors that can improve performance, and threats, which are external factors that could negatively impact a business.
Using the SWOT analysis can be useful in many ways, the method can be good for identifying areas in need of improvement, making key strategic decisions, performance overhauls, development of products, market competition overview, and more. Using the SWOT analysis requires one to identify both the internal and external factors and to evaluate them based on the four elements: strengths, weaknesses, opportunities, and threats. These four elements are then used to create a strategic plan. Furthermore, the method is a tool to be used alongside other strategic planning tools.
Despite the SWOT analysis being a popular tool, it is not without limitations and criticisms. The downsides of the tool include its oversimplifying of key factors and its subjective nature. Nonetheless, SWOT analysis remains a useful tool for organizations to inform and plan their strategic decisions for improved performance.
Introduction
Origin
Definition and explanation of SWOT analysis as a tool for strategic planning
The four elements of SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats
Strengths
Weaknesses
Opportunities
Threats
Discussion
Discussion of the purpose and benefits of conducting a SWOT analysis Explanation of how to conduct a SWOT analysis, including identifying internal and external factors, evaluating the elements, and developing a plan based on the findings of the analysis.
Advantages
Disadvantages & Limitations
Examples of use
Examples of how businesses and organizations can use SWOT analysis to make strategic decisions and improve performance
Comparison
Comparison of SWOT analysis to other strategic planning tools, furthermore a discussion of the limitations and criticisms of SWOT analysis as a tool for decision-making.
References
Investopedia “SWOT Analysis: How To With Table and Example” https://www.investopedia.com/terms/s/swot.asp (February 12, 2023)
