When and why is a swot analysis done?
Answers:
SWOTT - strengths, weaknesses, opportunities, threats, trends - it's done to analyze a business - perhaps to buy it, to improve productions, etc.
Some business plans have a swot. Not all. swot is looked down as being rather superficial so you wont see it too often standing alone like that in a real application. It's more to help the planner and investor of a business understand and organize the industry in laymans terms.
SWOT is commonly used in almost every aspect of a business. E.g. market position/penetration, product position, sales pitches, etc.
SWOT is a high level analysis which should be used together with fish bones to detail all the tactics required in a plan.
Anyway, Fish bones and SWOTs are basic analytics but there are more advanced methodologies that businesses use to plan and strategies.
People get caught up in the acronym S.W.O.T. when it is really a mnemonic guide for methodically looking at both the internal condition of the organization and its environment. The idea is that there is always a "gap" you need to be aware of between what you are and what you should be to be effective in your environment. That is the "why".
The "when" is a debatable factor. Some strategic planners believe that SWOT's should be done periodically, as GM has typically done. GM for example would conduct an annual SWOT as part of their planning process. The problem was that Toyota would conduct their SWOT immediately after GM's public announcement and implementation in order to account for GM's actions in their own SWOT. So to prevent others from endgaming your highly structured routines, others advise conducting SWOTs after significant changes in the environment or changes within the firm to prevent rigidity and avoiding management becoming habituated to the process and information of the SWOT.
Keep in mind that SWOT's are informative for both organizations AND individuals who are trying to gain something by adapting to their environment for their personal growth.
Peace and best regards all.
I shall answer it in the most simplest and the way the companies actually use it.
As everybody told SWOT is strangths, weakness, opportunities, threats. Every decision can use swot analysis.
When do I use SWOT
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1) You can use it even to make every decison in your life
2) Especially used when launching new product
3) Launching new marketing campaign
4) During repositioning
5) Most importantly to combat competition and increase market share
Why do you use it
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1) It is simple and logical
2)Drilling down will lead to uncovering of many aspects and truths which one hadnt seen before
3) A proven methodology
How to do it
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There are 2 steps in accrying out
1) List down you companys strangths and Weakness. List down the opportunities and threats from the external environment
2) Make a map, how your strengths can be used to seize opportunities and fight threats. what new strengths need to be develop to do the same?
Make another map, which weakness is major hurdle in seizing opportunity and which weakness is more prones to attack, and how you can improve upon them
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