What is a SWOT analysis and do you need one in your business plan?

Answer 1

SWOT stands for strengths, weaknesses, opportunities and threats. It is a methodology used to aid strategic planning that gained popularity during the 80's.

-A critical set of steps in a planning exercise is to perform internal assessments (including an analysis of performance against previous plan) and external assessments (including an analysis of the operating environment) that result in the identification of strengths, weaknesses, opportunities and threats through what is termed a SWOT Analysis. This is a complex analysis which involves matching external possibilities with internal capabilities.

- A SWOT analysis, usually performed early in the project development process, helps organizations evaluate the environmental factors and internal situation facing a project.It involves monitoring the marketing environment internal and external to the organization or individual.

The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies.



The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories:

Internal factors - The strengths and weaknesses internal to the organization.
External factors - The opportunities and threats presented by the external environment.
The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is really important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.

It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important.

...all the best.

Answer 2

A SWOT analysis is a tool that business planners use to gauge an organization and its environment. SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. To perform a SWOT analysis, consider the following:

Strengths:

What advantages do you have? What resources and contacts do you have access to? What recognitions have you received? What are your intangible assets? What do you do well?

Weaknesses:

What do you lack? What can be improved? What are some of the gaps that need to be addressed? What should be avoided?

Opportunities:

What specific opportunities are available to you to take advantage of? What are the opportunities facing your industry that you could possibly pursue? What are the trends that might open new opportunities?

Threats:

What obstacles do you face? What is your competition up to? Are the requirements for your company changing? Are you having any cash flow problems? Can any of these weaknesses seriously threaten the vitality and longevity of your business?

Carrying out a SWOT analysis can be a real eye opener. Not only will it highlight what needs to be “fixed” or immediately addressed, it will also show you what you’ve been doing right. While it is not a necessity, consider performing one for inclusion in your business plan.

Answer 3

Jennifer answered the question quite well with the exception of the question of SWOT in strategic planning. SWOT, or Strengths Weaknesses Opportunities Threats, is a common tool in strategic planning to look at specific, targeted agendas for risk management. For example, if Company A is intending to move into Company B's territory, then a SWOT analysis of company A's and B's market positions will give a measurable risk assessment to company A. This will allow company A to assess said risk and decide if the strategic plan is appropriate. This response has very limited detail and will need to be expanded further.

Answer 4

As people have outlined, SWOT refers to Strengths, Weaknesses Opportunities and Threats. When doing your analysis, look at the 4 P's and try to relate each back to them- Produce, Price, Place, Promotion- how will you achieve these? How do your competitors achieve them? Are any of the 4 P's your strengths or weaknesses, etc..

Answer 5

Strength Weakness Opportunities and Threats analysis.
It is essential for a business for and this analysis is done for long term plans.
It can be used for exploring
1 Business avenues where you have advantage over your competitors or vice versa
2.How your strengths can be used to meet new opportunities
3. Partnership with others who have compatible SWOTs and symbiotic possibilities
4.Possible losses/ disasters you must anticipate. You mus have decisive plan to cope with them.

Answer 6

A SWOT is Singers Without Oval Teeth, and if your business is not in the music field, no it's not needed.

Answer 7

Oh dear, is it time to get rid off the deadwood?
We have just had a SWOT meeting!
Be PREPARED!

Answer 8

It is where you analyze the (S)trengths, (W)eaknesses, (O)pportunities, and (T)hreats. Depending on your business plan, it is often done for your own business, on your competition, or both. It shows potential investors you've done your homework and that your business has potential to succeed, and also that you have identified potential problems and how you will tackle them. It is not necessary to include one, but it can't hurt.

Answer 9

Strenghts , weaknesses, oppertunities and threats i beleive.

Dunno how useful they are though.