Swot analysis definition - what is swot
According to the scheme indicated in the previous chapter, the fist step is to design the Balanced Scorecard (BSC), it consists of making the strategic plan of the company (if it is necessary). To do this, we will have to analyse our internal and external organization to obtain a realistic situation about the business, later we will define suitably the vision of our organization.
Swot Analysis - Analysis of the current situation of the organization.
There are diverse tools to indicate the actual situation of the organization, here we have mentioned some of them :
In order to make the internal and external analysis we have a tool which is great accepted by the critical and by the objective obtained results , this tool it is known as SWOT, but.
What is SWOT analysis used for ?
SWOT analyses offer outcome dates to know the real situation of the enterprise as well as the risk and opportunities available in the market which affect directly to our business.
What is the SWOT analysis ? - Definition
The analyse is based on the weakness, on the opportunities and on the threats that the company possesses. The abbreviation SWOT derives from the above mentioned names.
The SWOT analyse is made by observing and describing ( it is a qualitative analyse ) the characteristics of our business and of the market where it is found. The SWOT analysis allows to detect the strength of our company and the threats of the environment.
Internal analysis of the organization
Strength : describes the resources and the skills that our company has acquired. What is the difference from the company? What can we improve ?
Weakness : describes the factors in which we have unfavourable position with regard to the competence. In order to make the internal analysis.
In order to make the internal analysis , has to be considered the analysis of resources, of activities and risks.
External analysis of the organization
Opportunities : they describe the possible markets, business niches that can be seen by everyone, but if they are not recognized on time that would mean the loss of the competitive advantage.
Threats : The describe the factors that cab put in danger the survival of the organization , if they are recognised on time they can dodge or they can become opportunities.
In order to make the internal analysis we have to take into account the analysis of the environment, of the interested groups, the legislation, and the demographic and political aspects.
Once we have described the threats, the opportunities, the strengths and the weakness of the company, we can construct the SWOT matrix. Matrix let us visualise and summarised the present situation of the company.
With SWOT we can obtain a global vision of the real situation of the company, being able to maximise and to take advantage of our opportunities and strengths, also it minimises and eliminates of the company.
The accomplishment of the analysis obtained by means of interviewing the different directors, executives and leaders of opinion in our organization.
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