How to do swot analysis

The purpose of the SWOT analysis (SWOT), a method used by various companies and firms, is to study the circumstances of the existence of the enterprise, the relationship between the hidden capabilities and potential threats of its strengths and weaknesses.

Instruction manual

1

The essence of this method lies in its name, according to the abbreviation for the translation of C - (strengths), C - (weaknesses), B- (opportunities) and Y (threats). To make a swot analysis, you must clearly follow the following rules: The first and most basic thing is to choose the right object for analysis and formulate the purpose of the study. If you choose an organization as an object of analysis, this will not lead to the desired results, you need to analyze the relationship, for example, the bank and those who are interested in it.

2

Make a list of strengths, weaknesses, threats and opportunities, remembering that strengths and weaknesses are factors inherent in the object under study, and opportunities and threats are what surrounds the object and what cannot be controlled.

3

Having filled in the SWOT matrix, it is necessary to analyze how to use strengths so that they help to prevent the threat of the environment and help to use the opportunities that arise in the external environment. As for the weaknesses, we need an analysis of how to use them so as not to interfere with the opportunities that arise and to counter environmental threats.

4

It is important not to forget about the "temporary factor", in the case of analysis, for example, within 10 years, we can not ignore the fact that external factors can change.

5

Which sides are strong and which are weak - this question is quite complicated and it is easy to make a mistake that will erase the result of the work, therefore, the author of the analysis should not be one person, it is more reasonable to organize a working group.

6

When you make a list of external opportunities and threats, think about the market, not about your company. Properly formulated opportunities and threats are those for you and for your competitors.

7

It is important to do a swot analysis, but after compiling the SWOT matrix, you also need to understand how to improve your own activities. Calculate which of the strengths or weaknesses of the more opportunities and threats, they will be the most important internal factors that require your attention. You can change them, significantly improve the affairs of your company.