SWOT Analysis Benefits for Business

The Benefits of SWOT Analysis for Business

What is a SWOT analysis?

Swot analysis is a form of analysis of the situation and the conditions that are descriptive (giving an overview). This analysis puts the situation and condition as input factors, which are then grouped according to their respective contributions.

History of SWOT Analysis

SWOT Analysis Benefits for Business

SWOT analysis is an analysis that was initiated by Albert Humphrey in the 1960s-1970s. This analysis is an acronym of the first letters of the Strenghts, Weaknesses, Opportunity and Threat.

SWOT analysis method can be considered as the most basic method of analysis, which is  useful to look at a topic or issue from a 4 different side.

Analysis results are typically landing / recommendation For maintaining the strength and the added advantage of existing opportunities, while reducing shortages and avoid threatness. If use correctly, a SWOT analysis will help us to see that the sides of the forgotten or not seen so far.

This analysis is descriptive and sometimes can be very subjective, because it could be two people who analyze an organization will look different side to the four parts. This is reasonable, because the SWOT analysis is an analysis that will provide output in the form of directives and not provide a miracle solution problems.

SWOT analysis is a method to describe and evaluate the condition of a problem, project or business concept based on internal

factors (inside) and external factors (outside) the Strengths, Weakness, Opportunities and Threats. This method is most commonly used in business evaluation methods to come up with strategies that will be done. SWOT analysis of the situation just is not as problem solvers.

SWOT analysis consists of four factors, namely:

1. Strengths
is the condition of the power contained in the organization, project or existing business concept. Strength is a factor analysis contained in the body of the organization, project or business concept itself.

2. Weakness
weakness is a condition contained in the organization, project or business concept. weakness analyzed a factor contained in the body of the organization, project or business concept itself.

3. Opportunities
chances of developing a condition that occurs in the future. A condition that occurs from the opportunities outside the organization, project or business concept itself. for example, competitors, government policy, environmental conditions.

4. Threats
a condition which threatened from outside. This threat can disrupt an organization, project or business concept itself.

Once the mapping is made hence made a SWOT analysis matrix table and specified as a SWOT information table. Then do the comparison between internal factors which include Strength and Weakness with external factors Opportunity and threat. After that we can do an alternative strategy to be implemented. The selected strategy is the most profitable strategy with risks and threats smallest.

In addition to the selection of alternative Swot analysis can also be used to make improvements and improvisations. to know the strengths (Strength and opportunity) and weaknesses (weakness and threat), then we are pursuing a strategy for self-improvement.

Perhaps one of the strategies to improve the strength and opportunity or do other strategies that reduce weakness and threat.

Benefits of SWOT Analysis

What benefits will be gained by the presence of a SWOT analysis? The following are some of them:
1. As a guide for companies to formulate policies related to strategic planning and implementation in the future. Given this analysis,  it is expected that the company will be able to choose the best policy and plan for business development in the future.

2. Being an evaluation form strategic policy and planning system of a company. SWOT analysis will help the company in an effort to think about the evaluation of policies deemed harmful and which are beneficial. Assign various latest designs as solutions to the problems found through the SWOT analysis evaluation.

3. Provide information about the condition of the company, then through the information that there will be a guide for employers and policy makers to undertake new policies as a solution to the existing analysis.

4. Challenging new ideas for the company management. The existence of various problems such as weakness, opportunities and a small force or threat of an outside party will push part of the management company to find a variety of fresh ideas and policies that would be a more effective solution to various problems.

That was what "Benefits of SWOT Analysis for Business" I hope you enjoy the article and have some knowledge.