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When it comes to strategy, defining where we are is an anchor point that we could establish as a starting point.
What we have already done in the past has brought us to this exact moment, and in the future we set the goal we want to achieve.
Sometimes, as individuals or as business managers, we have life events that lead us to question whether what we are doing is right or wrong.
Change is normal, and so is the desire for our own concept of success.
So what is your strength, your weakness, your opportunity and your threat?
Defining strengths may be easier than weaknesses.
Of course, you have to kill your own personal or corporate ego, to see yourself as a third person, and to be the observer of that weakness.
In my opinion, there is too much flow towards the idea that you have to be strong, you have to be positive, you have to be perfect, and it’s not like that.
Especially now that social networks are sometimes measured by the number of good photos and likes.
The successful influencer or business is the one that has reached millions of followers.
And this global idea of success or showing the strengths are only to cover up the weaknesses, which when filling out these SWOT analysis templates, no matter if it is for a company or a personal analysis, is sometimes difficult to describe.
Therefore, we went out in search of answers.
Why look for ideas or how to fill in SWOT analysis templates?
The visualization of information is useful for managers to understand the concepts in a quicker and easier to remember way.
When there is tons of information to sift through, a SWOT analysis would be useful to visualize your business or yourself.
You might consider a SWOT analysis as a dive into your personal or business energy flow, to start looking at the present moment.
I hope the following parts of the article will help you develop a SWOT analysis.
The SWOT analysis is a great tool to define an individual or organization as a visual image.
According to Sammut and Galea, a SWOT analysis assesses the internal strengths and weaknesses, and the external opportunities and threats of an organization’s environment.
Internal analysis is used to identify the organization’s resources, capabilities, core competencies and inherent competitive advantages.
External analysis identifies market opportunities and threats by examining competitors’ resources, the industry environment and the general environment.
The objective of a SWOT analysis is to use an organization’s knowledge of its internal and external environment and formulate its strategy accordingly.
A technique that allows organizations or individuals to move from day-to-day problems and traditional strategies to a new perspective.
A SWOT analysis can help your company face its biggest challenges and find its most promising new markets. (Gulam, 2011)
Mexico’s Innovation and Quality department makes the following statements about internal and external analysis.
For the internal analysis, it will be necessary to know the internal forces that intervene to facilitate the achievement of the objectives, and the limitations that prevent the achievement of the goals in an efficient and effective way.
In the first case we will talk about strengths and in the second case about weaknesses.
As examples we can mention: Available human resources, material resources, financial resources, technological resources, etc. (SIC)
This is something the organization is proficient in.
It translates into those elements or factors that, being under its control, maintain a high level of performance, generating advantages or benefits in the present and, of course, with attractive possibilities in the future.
Strengths can take various forms such as: mature, capable and experienced human resources, important skills and abilities to do something, valuable physical assets, healthy finances, efficient work systems, low costs, competitive products and services, recognized institutional image, agreements and strategic alliances with other companies, etc. (Ramírez, 2009).
It means a deficiency or lack, something in which the organization has low levels of performance and is therefore vulnerable, denotes a disadvantage compared to the competition, with pessimistic or unattractive possibilities for the future.
It constitutes an obstacle to the achievement of objectives, even when it is under the control of the organization.
As well as strengths, these can be manifested through resources, skills, technology, organization, products, image, etc. (Ramirez, 2009)
The external analysis are those opportunities and threats presented by the company.
Any factor over which the company cannot take control measures, but simply intervene or take preventive measures, these events are external.
The external analysis would help the company to place itself in an environment where it could get to see those areas in which to grow or that could affect it.
These are those circumstances in the environment that are potentially favorable for the organization and may be changes or trends that are detected and that can be used advantageously to achieve or exceed the objectives.
Opportunities can occur in any field, such as political, economic, social, technological, etc., depending on the nature of the organization, but in general, they are mainly related to the market aspect of a company.
Recognizing opportunities is a challenge for managers because a strategy cannot be created or adapted without first identifying and assessing the growth and profit potential of each promising or potentially significant opportunity. (Ramirez, 2009)
These are environmental factors that give rise to adverse circumstances that jeopardize the achievement of the established objectives.
They may be changes or trends that occur suddenly or gradually, creating a condition of uncertainty and instability over which the company has little or no influence.
Threats can also appear in any sector, such as technology, aggressive competition, new cheaper products, government restrictions, taxes, inflation, etc.
Management’s responsibility with respect to threats is to recognize them in a timely manner. (Ramirez, 2009)
Among the advantages of SWOT analysis, different authors point out the following.
Aids in the visualization or overview of the organization.
Supports an organization's strategic planning process.
To assist decision-makers in sharing and comparing ideas.
Organize the important factors related to success and failure in the business world.
As wonderful as a SWOT analysis may seem, there are opinions that uncover some disadvantages of SWOT analysis.
Erhard K. Valentin of Weber State University states the following.
SWOT analysis has shallow theoretical roots.
They do not go beyond the principle that, like any living organism, a company can only prosper if it achieves a good fit between itself and its environment.
Although this statement is eminently plausible, SWOT analysis is also based on the rather shaky assumption that all strategically significant features of a company’s internal and external context can be clearly classified as favorable or unfavorable and that such classification provides strategic insight.
Although neither the SWOT matrix nor its conceptual underpinnings shed light on how to correctly identify and classify noteworthy particularities or how to derive strategic implications, complementary guidelines abound.
They are usually fortified with checklists, which list a myriad of factors and forces that can affect a company.
When we sit down in front of the computer or have a pen and paper, some questions may arise such as:
Now where the hell do I start?
We may already have the famous SWOT matrix.
But what are the next steps?
A very good way and tool that has always helped is to have a series of questions and then start testing.
Here are some questions created by Texas A&M University.
What does your operation do well (production, marketing, etc.)?
What are your strengths (production, marketing, etc.)?
What are your company’s main sources of revenue and profits?
What is the main objective of your operation?
What is your organization’s market share?
Is your marketing/advertising effective?
Why did you decide to start your activity?
What were the motivating factors and influences?
Do these factors still represent some of your strengths?
Why do your customers buy from you?
What differentiates your operation in the market?
What have been your most notable achievements?
What relevant resources do you have?
Is the morale of your employees high?
Are there incentives to reward your employees for their good work?
Does your company manage its inventories efficiently?
To what do you attribute your success?
How is success measured?
What is your greatest asset?
What is your operation not doing well (production, marketing, etc.)?
What do others see as your weaknesses (production, marketing, etc.)?
What should you avoid?
Which are the least profitable companies?
What is your organization’s market share?
Is your marketing/advertising effective?
Is it a “wow” operation?
What is the major expense of the operation?
Will the operation be able to withstand price declines?
Why don’t customers buy from you?
What relevant resources do you need?
Does your company manage its inventories efficiently?
What new technologies are available that the operation can use to reduce costs?
What market trends am I observing?
What new relationships could you develop?
Are there new business strategies I can use in my operation?
Can the quality of operations, products and inventory management be improved without incurring serious costs?
Can I create a competitive advantage over my competitors?
Is it possible to demand better prices from suppliers?
Is there a possibility of receiving higher prices for production?
Can profitability be increased by producing other commodities?
Can the operation obtain more predictable cash flows? If so, how?
What can I do that I am not currently doing to improve my performance?
What new government policies or programs are in place?
What interesting social patterns, population profiles, lifestyle changes, etc. are occurring that could benefit my operation?
What are the interesting local events that could be leveraged to benefit my operation?
Have there been significant changes in the sector in which you operate?
What obstacles do you face?
What is your competition doing?
Are there or do you foresee new competitors in your market?
Are there any new regulations in your industry that hinder profitability?
Are technological changes threatening your profitability?
Is the operation keeping up with technological changes?
Have margins been under pressure?
Are international competitors taking market share?
What other changes in the market could harm the profitability of the operation?
Do you have delinquency or cash flow problems?
Are employees adequately trained and motivated?
Does the company produce too many different products?
Could any of your weaknesses seriously threaten your operation?
Here are some examples of SWOT analyses of world-renowned companies such as Amazon, Starbucks, Nike, Apple and Netflix.
To find some great SWOT Analysis PowerPoint templates, you can find them on websites like Envato Elements, where they have great layouts that enhance the rigid table design.
See some samples.
