In this week’s discussion, you’re going to perform a SWOT analysis on your organization. A SWOT analysis is based on the assumption that an effective strategy derives from the company’s internal resources (Strengths and Weaknesses) and its external situation (Opportunities and Threats). A good fit maximizes the company’s strengths and opportunities and minimizes its weaknesses and threats. Keep this in mind as you perform your SWOT analysis on your organization this week:
- Sometimes strengths and opportunities can seem like the same thing. Strengths are more about internal factors that give an organization advantages over others such as customer base or market position. Opportunities are about external factors that could improve revenues or increase profits. Opportunities focus on things like the economy, technological change, cultural issues, and changes in the marketplace or industry.
- The difference between weaknesses and threats is that weaknesses come from what is internal to the company such as its workforce, whereas threats come from outside the company, such as a new governmental rule requiring certain types of tools to be used, which would take a considerable investment to your company or the legal requirement to provide health insurance to workers who previously were not eligible.
SWOT Analysis Graphic
Please see the alternative text and the graphic below for examples in each of the four categories:
Strengths
Staff
Customer Base
Market Position
Financial resources
Sales Channels
Products/Services
Profitable
Growing
Weaknesses
Staff
Profit Margin to low
Financial resources
Competitive Vulnerability
Market Position
Lack of new products/services
Sales Channels
Opportunities
New Complimentary Market
Strategic Alliance
Funding
Sales
Products/Services
Merger/Acquisition
Market Poised for Growth
Competition Weaknesses
Threats
Economy
Loss of Key Staff
Lack of Financial Resources
Cash Flow
New Technology
Increased Competition
New Government Regulations
Falling Sales
Decreasing Profits
Please see below for the Alt Text for this Graphic:
Alt Text for SWOT Analysis Image.pdf