Do you know that what is SWOT analysis and importance of swot analysis for succeeding your business. in this article I will describe briefly about SWOT analysis.
What is SWOT Analysis
SWOT Analysis is very important for your business because it facilitates you in understanding and appreciating your vulnerability. As a business person, there are many things you have to think about when starting a new business.
Aside from examining the market and perusing the availability of the item or services you are planning to advance, you need to ensure that your business thought is attainable and that it can stand the trial of time.
While you can never be 100 % beyond any doubt that your startup can endure, you need to build the right foundations to allow it to flourish. A portion of the things you have to do as a business person is becoming to know the challenge, pick a working plan of action and checking manageability through supply and demand.
At some points, SWOT analysis is view as the perfect tool that enables you to evaluate your organization’s
Swot analysis made of four words which means strength, weakness, opportunities, and threats
swot analysis is a tool which is used by the company to prepare effective business strategies by knowing its strength and weakness and also identify the opportunities available in the business environment along with the threat present.
The main components of swot analysis are as follows
- External environment- the environment which affects the organization from outside. The external environment provides opportunities to a business unit and also a present threat,
- Internal environment – this created by an internal element. This element provides strength to the business unit and also make it weak.
The environment in which business unit is functioning can be divided into two parts
- Opportunities and threat which are present in the external environment
- Strength and weakness which are present in the internal environment
STRENGHT – it means to all the elements that are present in the organization and are utilized to gain competitive advantages.
strengths are the qualities which help you to achieve the organization’s targets and objectives. This structure the premise on which the organization’s prosperity can be measured.
the company needs to prepare a list of positive qualities which are directly related to its progress. positive qualities and good behavior mean efficiencies and capacities of your company.
WEAKNESSES – this refers to organization limitation. These limitations are their weakness. They make the organization week with another unit.
It is important for any organization to evaluate and distinguish its weaknesses and try and find a solution to them. For the advancement of the organization, the top management needs to distinguish the weaknesses and improve to enhance them.
OPPORTUNITIES – all the favorable situation for a unit in a business environment are known as opportunities for that unit.
Such a situation, when identified, motivate the unit to face the competitors with greater confidences and make the unit strong.
opportunities are outside elements which are typically introduced by the outer condition wherein the organization works.
These emerge when the organization is able to take advantages outside condition to design and execute techniques that help it to earn better incomes. It is significant for an organization to recognize these changes, carefully analyze them, and execute them for the company’s benefit.
THREATS – Environment situation unfavorable to a business unit present themselves as threats. These are harmful to the organization.
The organization needs to recognize these threats at an early stage and attempt to handle them at the earliest opportunity, so as to avoid facing them later on.
Why is all of this important ?
A person /institution/ business/ unit should analyze its weaknesses and threats and should frame such a strategy/ plan so that the weaknesses are turned into its strength and threats into opportunities.
One should never adopt the attitude of complete satisfaction. should always have high goals and target and try to reach greater heights of excellence. One should never feel depressed, dejected or defeated.
Never go for fixing such target or goals which are not possible to achieve, otherwise, failure will have its negative effects. it does not mean that high ideal and thoughts are to be avoided.
SWOT analysis help in understanding the atmosphere and to take an appropriate policy decision. To remove or to find to the problems of the external and internal environment, is necessary for the progress of an organization or business unit.
Frame the suitable strategy and to implement it properly depends on the careful analysis of the external and internal environment of an organization.
A SWOT examination can be amazingly profitable informing your business system since it allows you to see things from another viewpoint.
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