Being a strategic planning tool, SWOT is an efficient method to evaluate various business or project situations. SWOT actually is an acronym for strengths, weaknesses, opportunities and threats. Hence SWOT Analysis allows business managers to not only assess current position of their businesses but also to come up with strategies to meet up coming challenges. It is a mature framework that provide foundation for careful assessment of requirements, risks and opportunities for any kind of business no matter how big or small it is. You can also use SWOT Analysis for various purpose such as,
- Business planning
- Competitor evaluation
- Strategic planning
- Business Development
- Research Report
SWOT Analysis is usually done to study internal or external factors that might have some effect on the operation of business weather favorable or unfavorable. No doubt, SWOT Analysis is a technical subject and usually its detail varies from situation to situation or business to business but still there are some standard factors that can be considered during this process no matter when and where it is practiced.
SWOT Analysis – Key Elements
From another point of view, it is interesting to see that two of these elements negates other two: weaknesses opposes strengths while opportunities are against threats for any business. It is almost a standard practice to apply SWOT Analysis tool to find out current position of any business and then derive proven successful strategies to guide the business for improvement.
Here is preview of a simple yet comprehensive SWOT Analysis Template,
Limitations of SWOT Analysis
As we know that SWOT Analysis helps in explaining any situation to a great extent that can help management to take necessary actions for a better business, still there are a few limitations that one must keep in his mind while doing SWOT Analysis. First and the foremost is that it assumes simplified situations that can easily be covered in four basic elements (strengths, weaknesses, opportunities and threats). Therefore it is not necessary that it can fit perfectly suitable for every kind of situation. Some complex situations might require more elements to be included in analysis to come up with a more accurate picture. Then how a company management can consider it accurately what they should evaluate for their business development and long-term growth?
Here is download link for this SWOT Analysis Template,