SWOT Analysis


 A systematic approach to understanding the environment is the SWOT Analysis. SWOT which is the acronym for strengths, weaknesses, opportunities and threats. The strengths and weaknesses existing within an organization can be matched with the opportunities and threats operating in the environment so that an effective strategy can be formulated. 

An effective organizational strategy is that to capitalize on the opportunities through the use of strengths and neutralizes the threats by minimizing the impact of weaknesses. 

1. Strength is an inherent capacity which an organization can use to gain strategic advantage over its competitors. Strengths are the attributes within an organization that are considered to be necessary for the ultimate success of a project. Strengths are resources and capabilities that can be used for competitive advantages. 

2. Weakness is an inherent limitation or constraint which creates a strategic disadvantage. The factors within the SWOT analysis formula that could prevent successful results within the project are weaknesses. It includes factors such as an abundance of rivalry between departments, a weak communication system and inadequate amount of materials. weakness can derail a project before it even begins. 

3. Opportunities is a favourable condition in the organization's environment which enables it to consolidate and strengthen its position. Opportunities are classified as external that might be helpful in achieving the goals set for the project. These factors could involve vendors who wish to work with the company to help achieve success, the positive perception of the general public and market conditions that could make project desirable to the segment of the market. 

4. Threats are the unfavourable conditions to the organization's environment which creates risk for, or causes damage to the organization. These external factors could gravely affect the success of the project or business ventures. The possible threats that are critical to any SWOT analysis includes a negative public image, not ready made market for the final product and the lack of vendors who are able to supply raw materials for the project.    



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