SWOT analysis is the most common method for evaluating the conditions of a company as a whole. The conditions of a company depend on how effectively it can react to different external factors. When you evaluating external factors you should highlight the most significant of them for a specific time. By complying those factors with a company’s capabilities you can resolve a company’s problems. When solving different levels of tasks, it is also necessary to clearly understand whether critical factors are amenable to control by the company or not. You will find out whether those factors are internal or external, amenable to changes by the company or these are external events that your company cannot influence. SWOT analysis is the best tool to evaluate this complex of internal and external factors and their influence on your company.
SWOT analysis is a necessary element of research and a mandatory preliminary stage in the preparation of any level of strategic and marketing plans. The data obtained as a result of the situational analysis serves as the basic element in the development of the strategic goals and objectives of the company.
SWOT abbreviation means:
This is a very adaptive and powerful tool, and it can be applied in your daily life. It is useful to conduct a SWOT analysis if you want to know what is the best way for your career development. For example, before the interview, when applying for a job, a SWOT analysis will help you to really learn your strengths and capabilities, clearly define what points you will need to focus on, and what you should try to leave behind the scenes. It will help to calculate some of the interviewer's “tricky questions” and prepare the best answers. Even in many daily problems, this mastered simple method will help to find the right solution that is adequate to the situation.
Steps to conduct the SWOT analysis.
1. To implement the basic version of the SWOT analysis, you must first select the main parameters affecting the development of the situation and/or the success of the company on the market. Key success factors are the priority. You should also consider the main opportunities and threats that may affect the company or the situation in general.
2. Evaluate the representation of selected factors in the company. The benchmark for assessing the performance of the company on the selected parameters are the expectations of customers and the achievements of the closest competitors and the market leader.
3. Find out what your opportunities and threats are according to the probability of their occurrence and the degree of influence on the situation in your company.
4. Analyze the influence of internal opportunities, external threats and find out what strengths and weaknesses your company has. The analysis can be recorded either in a descriptive form or in a table.
5. Sort the identified factors according to the degree of their importance and draw up the final results of the analysis.
The results of SWOT analysis can help you to evaluate your company has internal resources and forces to realize all your opportunities and stand against external threads. Plus, it helps you to find what problems you should fix immediately.