SWOT analysis which focuses on the internal and external elements which governs the competition position of an organization with emphasis on future and current business perspectives. SWOT analysis covers every aspect of business. It analyzes the strength, weaknesses, opportunities, and threats of the organization.
STRENGTH AND WEAKNESS
The factors or elements which are within the company and which are controlled are to the internal elements or internal factors. All the business or leaders should find the weakness and strength to derive their strategic plan. The strength and weakness includes the employees, quality of product etc…. The weakness of the organization should be tracked and solved, should be admitted not to happen again.
OPPORTUNITY AND THREATS
Global economics, government laws and competition are the main external factors of a business. These are the uncontrolled opportunities and threats for an organization. It also finds out the position and demand of the product in the market and it also help to draw strategies which can defeat the competitors in the market.
- It simplifies a large amount of datas into manageable datas.
- It help to find the threats and opportunities.
- It help to take advantage of the business strengths.
- It helps to derive new goals and the strategies to achieve the goals.
- It cannot provide an alternative or solutions for the decisions.
- Provide many of the ideas but will not help to choose the better one.
- It produces a lot of information which is not useful.
- Unknown factors may influence unexpected outcomes.