Business

SWOT Analysis Regina Posadas

Introduction to Business

BMT-1010

Professor Kathy Yorkshire

October 10, 2021

Abstract In this paper, the reader will get a better understanding about the SWOT analysis. The

process of SWOT analysis will be explained along with using examples to clarify how

the process works. Each individual part of the analysis will be explained. Therefore, real

life examples will be used to explain the process overall.

SWOT Analysis The SWOT analysis is short for “Strength, Weakness, Opportunity, and Threat”

(Kenton, 2021). This specific analysis is a framework that is used when evaluating a

company’s competitive position in addition, it will develop strategic planning for the

company (Kenton, 2021). Internal and External factors are assessed during this

analysis. In which internal factors are the strengths and weaknesses and the external

factors are the threats and opportunities (Business Queensland, 2020). The SWOT

analysis is designed to aid realistic, fact based data that looks into the strengths and

weaknesses of the organization or the company that is being evaluated (Kenton, 2021).

This analysis is a strategic planning technique that will ultimately provide the company

or organization with assessment tools. By conducting a SWOT analysis, the company or

organization will be able to think of new ideas that will positively affect the workplace

environment (Kenton, 2021).

Conducting a SWOT Analysis

Therefore, when a SWOT analysis is being done, the company or the

organization should be able to build on strengths, minimize weaknesses, seize

opportunities, and counteract threats (Business Queensland, 2020). When trying to

conduct a SWOT analysis it is best to conduct the analysis with a specific objective or

question in mind (Business Queensland, 2020). Once an objective is chosen, the

company will then have to identify the strengths, weaknesses, opportunities, and

threats. Obtaining this information, the company must then create a strategy of how to

achieve the new goals that were set (Indeed, 2021). In result, the company or

organization should have a better understanding of the internal and external factors that

influence the company (Indeed, 2021).

The person conducting the SWOT analysis will have to remember that the

threats are challenges. The company needs to prepare for versus thinking of threats

negatively (Indeed, 2021). Another helpful reminder would be when conducting the

SWOT analysis and determining the new goals your company has set, there should

also be a timeline that is set. This is because the company will be able to take

advantage of every opportunity (Indeed, 2021). These will help the company

successfully grow and implement new ideas/strategies.

Internal Factors

In further explain the individual factors that are used for the SWOT analysis.

Starting with the first internal factor which is Strength. Strengths are the things that the

company does really well, or the factors that make an employee standout (Mindtools,

2021). Strengths have the possibility to motivate the workplace to better themselves,

and continue to set new goals (Mindtools, 2021). When one is trying to assess the

strengths of the company to conduct a SWOT analysis questions like “What do you do

better than anyone else? What unique or lowest-cost resources can you draw upon that

others can’t?” needs to be asked (Mindtools, 2021).

In addition, the other internal factor is weakness. Weakness is similar to strength.

While strengths are the highlights or positive focuses, the weaknesses are the things

that need improvement or practices that should be avoided (Mindtools, 2021). This is

where the company has to think of how their competitors view them (Mindtools, 2021).

In addition, one will have to consider where the company may be lacking in comparison

to their competitors. They would need to think about whether their competitors can see

their weaknesses (Mindtools, 2021).

External Factors

Alongside considering the internal factors, whomever is conducting the SWOT

analysis needs to consider the external factors as well. Just like internal factors, there

are also two factors that come into play. First external factor is Opportunities.

Opportunities are where whomever is evaluating thinks about the trends that the

company takes advantage of (Mindtools, 2021), and if the company is utilizing the

strengths within the opportunities that are presented to them. The company or

organization will have to be mindful that opportunities can arise from situations outside

of the company or organization (Mindtools, 2021). For example, when you see back

school coming out, you can expand sales by providing incentives for customers.

Lastly, the final step to the SWOT analysis that is also a part of external factors is

Threat. Threats are anything that can negatively affect the company or the organization

(Mindtools, 2021). Examples would be change in the market, and shortage in

employees. It is critical that you anticipate threats even when you do not think anything

can happen (Mindtools, 2021). Anticipating threats and being prepared for them will

prevent the company or organization from delaying any opportunities or becoming a

victim of the threat (Mindtools, 2021).

Conclusion

In conclusion, the SWOT analysis is a very beneficial evaluation that should be

run by your company or organization. Not only will you be able to identify the positives

that your company is doing well, you will also be able to identify the things that will have

to be improved on. Therefore, this framework should be completed quarterly. New goals

will be set that each employee can work towards. That is how Netflix is still able to stay

ahead of their competitors.With each SWOT analysis being conducted they are able to

look at different goals, evaluate what needs to be done.

References

Employment, S. B. and T. (2020, June 15). Conducting a SWOT analysis.

Business Queensland. Retrieved October 7, 2021, from

https://www.business.qld.gov.au/starting-business/planning/market-customer-resea

rch/swot-analysis/conducting.

How to do the SWOT ANALYSIS FOR YOUR COMPANY: Steps and tips. Indeed

Career Guide. (n.d.). Retrieved October 7, 2021, from

https://www.indeed.com/career-advice/career-development/how-to-do-a-swot-anal

ysis.

Kenton, W. (2021, September 4). How SWOT (STRENGTH, WEAKNESS,

opportunity, And THREAT) analysis works. Investopedia. Retrieved October 7,

2021, from https://www.investopedia.com/terms/s/swot.asp.

the Mind Tools Content Team By the Mind Tools Content Team, Team, the M. T. C.,

wrote, Y., wrote, D., & wrote, M. (n.d.). SWOT analysis: – how to develop a

strategy for Success. Strengths, Weaknesses, Opportunities and Threats.

Retrieved October 7, 2021, from

https://www.mindtools.com/pages/article/newTMC_05.htm.