One of the most helpful tools that can be used to understand your organisation is the SWOT analysis. SWOT is an acronym for strengths, weaknesses, opportunities, and threats.
This framework considers the external and internal influences that could impact upon your organisations position and performance.
The SWOT analysis headings provide a good basis for reviewing strategy, position, and direction. The SWOT analysis should be linked to your organisations aims and objectives.
The importance of a SWOT analysis is that it can:
• Help support business decisions,
• Help with strategic planning,
• Bring weaknesses to light,
• Highlight strengths that can be utilised.
Factors to consider:
Strengths - Internal characteristics of the organisation that give it an advantage over competitors.
Weaknesses - Internal characteristics that place the organisation at a disadvantage relative to competitors.
Opportunities - External possibilities to improve performance in the environment.
Threats - External elements in the environment that could negatively affect the organisation.