How to develop a SWOT matrix or analysis
What is SWOT analysis or FOFA matrix?
The function of the SWOT matrix is to formulate plans for strategic list of ghana whatsapp phone numbers objectives based on the strengths and weaknesses of the business (internal environment), and the opportunities and threats of the market (external environment).
The creation of SWOT analysis is attributed to Albert Humphrey and his research team at Stanford University in the 1960s and 1970s.
In their research, they tried to understand why strategic planning in major companies had failed. To evaluate the companies in the research, the SOFT analysis , the embryo of the SWOT analysis , according to the authors, used the following criteria:
What is positive in the present is a Force ;
What is positive in the future is an Opportunity ;
What is negative in the present is a Weakness ;
What is negative in the future is a threat .
The factors analyzed were grouped together and therefore the SWOT or FOFA matrix :
Strengths
They are internal elements of the business that enhance the strategic objective analyzed .
Another way to think about them is to imagine the elements that are under the control of the company. Some examples might be:
1) Team characteristics, such as unity, proactivity, experience;
2) Assets, such as real estate, equipment, software;
3) Prime location;
4) Strategic relationships with large companies;
5) Networks of investors, team or partners;
6) Specific team competencies;
7) Client portfolio.
There are virtually infinite forces that can be listed in a business, but it is important to focus on what really makes a difference for the purpose of the analysis being done.
The internal environment can be studied through a business diagnosis.
If the company is considering launching a software program, for example , the team's knowledge of computer programming may be a strength, but a prime location would hardly be a strength.
Weaknesses
Since the weaknesses in the SWOT Analysis are internal elements of the company, the strategic objective is analyzed .
In addition to strengths, there are those characteristics within the organization's control that do not help in fulfilling the mission.
Some examples are:
1) Highly perishable product;
2) Scarce raw material;
3) Poorly qualified equipment;
4) Outdated technology;
5) Defective delivery process;
6) Location not very accessible.
Generally speaking, the absence of a strength can become a weakness and vice versa. Going back to the software release example, if the team is not even qualified in computer programming, this factor can be considered a weakness.
Opportunities
As SWOT analysis opportunities are situations outside the company that can positively affect the analyzed objective . These phenomena are not under the control of the organization, but there is a possibility that they may occur. Some examples are:
1) Changes in legislation;
2) New social or labour market requirements;
3) Investment opportunities;
4) Development of a new technology;
5) Favourable changes in the exchange rate or interest rates;
6) Successful launch of a complementary product.
Opportunities are a kind of dreams.
Although they are outside the company's control, there should be minimal preparation in case they occur. Two interesting tools for studying the external environment are the PEST analysis and Porter's 5 competitive forces.
How to develop a SWOT matrix or analysis
Threats
Finally, threats in the SWOT analysis are situations external to the company that can alter the strategic objective analyzed .
Like opportunities, they are beyond the company's control, but there is a known possibility that they may occur.
Some examples are:
1) Entry of an international competitor into the market;
2) Piracy of its products;
3) Change in legislation in the sector;
4) Labor shortage;
5) Strikes and stoppages.
Threats can be expressed through fears on the part of the company's management. In addition to opportunities, one must consider ways to mitigate them.
