SWOT Analysis

The SWOT analysis is a well known business analysis tool for decision making. This analysis method is based on analyzing the strengths, weaknesses, opportunities and threats related to any specific decision, problem or opportunity a business is facing and can also be used in personal decision making.

A SWOT Analysis Requires an Objective

In order to complete a SWOT analysis you need to have some end objective in mind. There needs to be something that you are relating the strengths, weaknesses, opportunities and threats of the SWOT analysis to - for example what strengths do we have available to enable us to reach that specific objective.

What does SWOT Analysis Stand For?

The SWOT analysis is based on analyzing strengths, weaknesses, opportunities and threats. The strengths and weaknesses are internal factors and involve those factors within the organization for which the SWOT analysis is being done that will either be beneficial to the achievement of the final objective or harmful to its achievement. The opportunities and threats are external factors which will influence the organizations achievement of the final objective. These external factors, according the Wikipedia, may include "macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position."

Using a SWOT Analysis to Determine the Attainability of the Objective

The first use of a SWOT analysis may be to determine how achievable an objective is given the current strengths, weaknesses, opportunities and threats. If by doing this analysis a company or individual discovers that the ultimate objective is not attainable they may decide to not go ahead with the project and prevent making mistakes by going ahead with an unattainable project.

Using a SWOT Analysis to Create Strategy

Once you have discovered an attainable objective by means of a SWOT analysis you are able to use this same analysis to come up with a strong strategy for its completion. If you know what the strengths, weaknesses, opportunities and threats to a specific objective are you will be able to use your strengths, stop the weaknesses, exploit the opportunities and defend against threats. By working on these you will not only achieve your objective but also be able to improve how successful you are in achieving it.

Using a SWOT Analysis to Analyze Your Competitors

Apart from simply applying the SWOT analysis to your business or organization you may also try doing it on your competitor. Try to work out what obvious strengths, weaknesses, opportunities and threats they face in a particular situation. By doing this you will be able to determine where your advantages are and how you can best compete against them.

Using a SWOT Analysis in your Personal Life

SWOT analyses are usually used in business or organizational situations but they can equally be applied in your personal life. If you are facing a decision, such as what job opportunity to take you can create a personal SWOT analysis - relate your strengths, weaknesses, opportunities and threats to the specific job opportunity you have before you and decide whether it would be in your best interests to take that job. You can also use it when analyzing a number of other personal decisions by applying the SWOT analysis to that particular situation.

In conclusion, a SWOT analysis is a popular decision making tool in business which analyzes the strengths, weaknesses, opportunities and threats of the organization in relation to a specific objective. This decision making technique can also be used for making personal decisions and in a variety of different situations.