Demonstrate how metrics such as valuation, economic profit, and related terms are measured and evaluated. Explain the significance and implications of various economic theories pertaining to profit, consumer choice, demand and supply, forecasting and opti

Lessons From Experience: SWOT Analysis

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Introduction

The story that you are about to read is from actual events that occurred in the field. Its purpose is to provide you with a real-world example from a seasoned professional in the business world.

SWOT Analysis

One of the most important tools to use when making a business decision is the strengths, opportunities, weaknesses, and threats (SWOT) analysis; that is, a method to assess an organization's strengths and weaknesses and the internal and external opportunities and the threats it faces. When I was asked to evaluate whether it made sense for a stockbroker to market to a new territory, I immediately began to provide my own opinions and preconceived notions. As I prepared for my presentation to disclose my evaluation, I noticed that my opinions were slanted—even untruthful to some degree. I recognized an opportunity to apply what I'd learned in school and gave SWOT a chance. It took me 2 hours to develop a well-rounded analysis and to make a more informed decision. Doing a SWOT analysis saved me from making a big mistake—one that could have cost the company thousands of dollars and likely cost me my job.

It is important to take away the following from this scenario:

• A SWOT analysis should be conducted for all major decisions in business.