Fundamental Analysis - Swot Analysis

What are the Strength / Weakness of the Organization ?

In Management a term “ Swot Analysis” is used. Where    

S – Strength  

W – Weakness 

O – Opportunities 

T – Threats.   

A SWOT analysis is commonly used in marketing and business in general as a method of identifying opposition for a new venture or strategy. Short for Strengths, Weaknesses, Opportunities and Threats, this allows professionals to identify all of the positive and negative elements that may affect any new proposed actions.

The purpose of a SWOT analysis

The SWOT analysis enables companies to identify the positive and negative influencing factors inside and outside of a company or organization. Besides businesses, other organizations, in areas such as community health and development and education have found much use in its guiding principles. The key role of SWOT is to help develop a full awareness of all factors that may affect strategic planning and decision making, a goal that can be applied to most any aspect of industry.

SWOT is meant to act primarily as an assessment technique, though its lengthy record of success among many businesses makes it an invaluable tool in project management.

When to use SWOT

SWOT is meant to be used during the proposal stage of strategic planning. It acts as a precursor to any sort of company action, which makes it appropriate for the following moments:

·                                 Exploring avenues for new initiatives

·                                 Making decisions about execution strategies for a new policy

·                                 Identifying possible areas for change in a program

·                                 Refining and redirecting efforts mid-plan

The SWOT analysis is an excellent tool in organizing information and presenting solutions, identifying roadblocks and emphasizing opportunities.

The elements of a SWOT analysis

A SWOT analysis focuses entirely on the four elements included in the acronym, allowing companies to identify the forces influencing a strategy, action, or initiative. Knowing these positive and negative impacting elements can help companies more effectively communicate what elements of a plan need to be recognized.

When drafting a SWOT analysis, individuals typically create a table split up into four columns so as to list each impacting element side-by-side for comparison. Strengths and weaknesses won’t typically match listed opportunities and threats, though some correlation should exist since they’re tied together in some way.

Internal factors

The first two letters in the acronym, Strengths and Weaknesses, refer to internal factors, which means the resources and experience readily available to you. Examples of areas typically considered include:

·     Financial resources, such as funding, sources of income and investment   

      opportunities.

·     Physical resources, such as your company’s location, facilities and equipment.

·     Human resources, such as employees, volunteers and target audiences.

·     Current processes, such as employee programs, department hierarchies and software systems.

When it comes to listing strengths and weaknesses, individuals shouldn’t try to sugarcoat or glaze over inherent weaknesses or strengths. Identifying factors both good and bad is important in creating a thorough SWOT analysis.

External factors

Every company, organization and individual is influenced and affected by external forces. Whether connected directly or indirectly to an opportunity or threat, each of these factors is important to take note of and document. External factors typically reference things you or your company does not control, such as:

·      Market trends, such as new products and technology or shifts in audience needs.

·      Economic trends, such as local, national and international financial trends.

·      Funding, such as donations, legislature and other foundations.

·      Demographics, such as a target audience’s age, race, gender and culture.

The SWOT analysis is a simple, albeit comprehensive strategy in identifying not only the weaknesses and threats of a plan, but also the strengths and opportunities available through it. While an excellent brainstorming tool, the four-cornered analysis prompts entities to examine and execute strategies in a more balanced way.

SWOT Analysis Template

Here is a SWOT Analysis template with some examples filled in: 

Strengths	Weaknesses
·                                 Political support ·                                 Funding available ·                                 Market experience Strong leadership	·                                 Project is very complex ·                                 Likely to be costly ·                                 May have environmental impact Staff resources are already stretched
Opportunities	Threats
·                                 Project may improve local    economy ·                                 Will improve safety Project will boost company's public image	·                                 Environmental constraints ·                                 Time delays Opposition to change

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