How To perform SWOT Analysis For Profitability

April 8, 2009 | Posted by lmfoong

SWOT Analysis

is widely used as a Strategic Planning tool in the business world by high level management staffs example; Senior Leaders and Heads of Departments. Most commonly use are in teh form of template and matrix. They also refer to SWOT Analysis example for various industries as a way to understand how SWOT Analysis Template | Matric is applied.

Beofe you can adopt the SWOT Analysis as a tool to help you in the Strategic Planning, it is important that all your team members understands it. A brief concepts of SWOT Analysis is illustrated in 6 steps as follows:-

S.W.O.T. is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. As you can see, the S.W.O.T. consists of four factors which clearly has its own identity and purpose.

2) Where is SWOT applied?

SWOT Analysis or merely SWOT as it may sometimes being called can be performed in a variety of application or situation in business environment, corporations, Internet Business, website design or start a new business venture etc. It can be used as a situation analysis which serves as an input into a strategic planning process. It can also apply to evaluate the situation in terms of its capabilities.

3) When do perform SWOT Analysis

In common practice, SWOT Analysis together with its tempalte or matrix is performed during the Strategic Planning or Business budget session normally done at the end of a financial year. But to perform a SWOT, it should not be limited to a yearly affair. You may perform a SWOT Analysis whenever it is needed to help you to identify causes of a non-conformance and you needed a new solution or strategy.

4) Who perform SWOT Analysis

In most cases, leaders of an organization perform a SWOT Analysis. However, it should not be limited to this group of people. In fact, anyone who has an interest and trained can perform a SWOT Analysis for the situation they are in. I have many situations where heads of a department perform a SWOT Analysis for their own operation issues because they want to develop solutions based on facts.

5) Why do you need to perform a SWOT Analysis

As it can be seen by now, data gathering is an essential part of SWOT Analysis. Hence, the information collected is likely to be more factual. Any solution derived from SWOT template | matrix will be more realistic and reliable.

6) How to perform a S.W.O.T. Analysis?

You may choose to use a SWOT Analysis Template | Matrix to help you in this task. As data collection is one of the key activities in SWOT analysis as shown in example quoted. it should allow enough time to bring back the data. 1-3 months before SWOT Analysis session is conducted. Once the data is collected, it should be grouped into the four factors in respective quandrants of the SWOT template | matrix. This can be done individually or in a team.

In summary, with some basic understanding of SWOT Analysis and the use of the template and matrix such as the example above, the solution derived from it can be value add to the organization.

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About the Author: Dr. L M Foong, PhD
He writes and publishes TQM Articles, case studies, reviews.

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