SWOT Analysis
[pic]
The SWOT analysis. This diagram has been recreated by LMC
LMC explains SWOT Analysis
SWOT analysis is a management tool used to identify and evaluate the essential considerations for a project or business venture. The key considerations are strengths, weaknesses, opportunities and threats and are typically arranged and displayed in the management tool as the letters S,W,O and T.
Strengths comprises existing attributes of the organisation that are helpful to achieving the overall objective. Weaknesses in contrast, are existing attributes of the organisation that are harmful to achieving the objective. Opportunities represent all external conditions which can be perceived as helpful to achieving the objective, whilst threats are again external conditions, harmful to achieving the company objective.
The four components of this management tool are arranged in a grid so that the components can be grouped in two ways:
• Internal / external factors (residing or originating inside or outside the company)
• Helpful / harmful factors (having direct influence on the achievement of company objectives).
Key analytic questions
A SWOT analysis is used to generate a strategy and guide the decision process for gauging how attainable or feasible an important business objective might be. The analysis comprises of asking fundamental questions of the company's objective, based on the four components:
1. How can we maximise each strength?
2. How can we stop or limit each weakness?
3. How can we exploit each opportunity?
4. How can we stop, reduce and defend against each threat?
A key consideration whilst posing these questions against company objectives is that what may ...