SWOT as the Key of Success
SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is not a strange terminology in management fields. Most of the managers know that SWOT is one of the key that they can use to improve the business. It is a great tool but it needs additional structure also.
Actually, SWOT is divided in two. The S (strengths) and W (weaknesses) cover up the internal factors of the business such as the management itself, operations and financial, and the O (opportunities) and T (threats) covers the external ones which included the rivalry. To do this kind of analysis, you can start it with preparing a checklist in each factor that you want to analyze. As you do that, don’t ever try to rate or solve each issue as you identify them or you will never complete the analysis. Just let it at first and form a discussion team later.
When the checklist is already complete, you can rate each factor according its importance to your business. You can use the alphabetical scale for this (A to E), where A = very important, B = important, C = some importance, D = little importance, and E = not important. And for the proficiency or the vulnerability you can use a numerical scale (1 to 5), where 1 = very proficient or not vulnerable, 2 = proficient or little vulnerability, 3 = average proficiency or some vulnerability, 4 = poor proficiency or vulnerable, and 5 = deficient or very vulnerable.
The lowest letter and the highest number (A5) will means the biggest weaknesses or threats, while the lowest letter and the lowest number (A1) is for the biggest strengths or opportunities.
In the analysis process make sure to fix the worst problems first, prepare for the biggest risks, take advantage of the best opportunities, and build your secondary strengths. You will find SWOT analysis is very helpful.
