The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a SWOT is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. It also helps to identify and minimize internal weaknesses and develop management strategies for external threats. The most effective use of a SWOT analysis is within the planning process. But analysis and plans must be followed with actions. Develop your SWOT and build an action plan that includes who, what, where, when, why and how to deal with the strategies.
The sample SWOT Analysis in Marketing Strategy Development will help you build your own swot. The best approach is to include key members of your organization in the process. If you are a one-person business then do it on your own or try to do it within your network of business acquaintances. The Internal Organization: strengths and weaknesses. Ensure that you build on your strengths and manage and control your weaknesses. Strengths There should be strong in-house training programs that have cross-trained staff members to learn a number of functional areas. Action: Leverage that training to develop employees with even more depth and value to the organization. Exceptional customer service: It is well recognized by customers through regular customer service surveys and feedback. Action: Leverage the strong customer relationships to find out more about what customers want and need. Have a well-developed new product development process; successfully adding two new products a year. Action: Using customer input, look to add more than two new products a year and/or add new product differentiation elements to existing products. Weaknesses Average order size ($) is small. Large volume of orders needed to increase sales. Action: Develop more new products to 'bundle' price with existing products. Cost of goods sold is high (due to small order size). Action: Develop sales plan to sell more volume and larger orders. Internal organization has grown quickly and added layers of management. Action: Re-assess the need for each management position and work to reduce the layers to not more than three. Understand the limitations of span of control. External Factors: The external environment (also known as the macro-environment) is about the opportunities and the threats that the organization faces. These external factors are not controlled by the business, but we can manage to minimize threats and maximize opportunities. To be successful in managing the external environment's impact on your business you must track economic indicators and understand how they impact your business and what you need to do about them. To build your own strengths, weaknesses, opportunities and threats analysis for your business, use the above sample SWOT analysis in your strategy planning. Make sure that you clearly understand and can identify your organization's strengths and weaknesses and that you know what the opportunities and threats are in your industry. Once you've used the SWOT model to complete your own SWOT analysis, make sure you update it annually - as your business and your external environment is constantly changing and evolving.
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