1. SWOT Analysis

 SWOT stands for Strength, Weakness, Opportunity, Threat. A SWOT analysis will help you discover your company's strengths and weaknesses (S-W), as well as potential opportunities and threats (O-T). This will provide you with a better understanding of strategic planning and decision-making.

The SWOT approach was created for business and industry, but it may also be used in community health and development, education, and even personal development.

Strengths

Strengths are things that your business performs exceptionally well or in a way that sets it apart from competitors. Consider the benefits your business has over competitors. 

These might include physical and intellectual assets, employees knowledge and expertise, access to certain resources, or a powerful set of production procedures. Your organization's strengths are an essential element of what makes it special. Therefore, you must look at "What do you excel at? What values motivate your company? What resources, unique or low-cost, can you access and others cannot? Identify and assess your company's Unique Selling Proposition (USP) and include it in the Strengths section.

Weaknesses

Weaknesses, like strengths, are essential characteristics of your company; thus, concentrate on your people, resources, systems, and processes. Consider what you could do better and what practices you should avoid. Consider (or find out) how others in your market see you. Do they see flaws that you are unaware of? Take the effort to investigate how and why your competitors outperform you. Always ask yourself what do you lack?

Opportunities

Opportunities are openings or possibilities for something great to happen, which you can seize. They often originate from events outside of your business and necessitate a vision into what could occur in the future. They may occur as a result of changes in the market you serve or the technology you utilize. The ability to identify and act on opportunities may make a significant difference in your organization's capacity to compete and gain competitive advantage in your market. Consider good chances that you can recognize right away. These don't have to be game-changers: even little advantages may boost your company's competitiveness. 

Threats

Threats include everything that can have a negative impact on your firm from the outside, such as supply chain issues, market demand fluctuations, or a scarcity of recruits. It is critical to foresee risks and respond to them before you become a victim and your growth slows down. Consider the challenges you'll encounter in bringing your product to the market. You may discover that the quality standards or specifications related to your products are changing and that you will need to modify those products if you want to keep ahead of the competition. Evolving technology is both a danger and a source of opportunity.

Why & when it is used

At any stage of a project, a SWOT analysis may provide valuable insights. It may be used for a variety of purposes, including:

• Investigate new initiatives or problem-solving options.
• Make judgments on the best strategy for your project. Identifying the possibilities for success in the light of potential threats to success might help you make better decisions.
• Determine where you might be able to make a change. An assessment of your strengths and weaknesses might indicate priorities as well as opportunities if you're at a crossroad or a turning point.
• Plan changes and refinements that can be made in the middle of a project. A new opportunity may open new doors, while a new threat may close one that previously existed.

How to use this tool? 

Step 1: Create a Swot Analysis Diagram 

SWOT diagrams exist in a variety of forms, but the idea is to identify the strengths, weaknesses, opportunities, and threats in a way that is clearly recognizable. Download our template, you can fill it digitally or print it out and use sticky notes or draw on it. It’s always preferred that you use the diagram in your own way.

 Step 2: Fill the four blocks

The tool consists of four blocks representing different components that shape your business. 

The first step is to list your strengths and weaknesses, which are internal factors within the organization. Your resources and experiences are examples of internal variables. Consider the following general areas:

• Human resources include employees, volunteers, board members, and members of the target demographic.
• Physical resources include your assets and equipment.
• Intellectual resources include your patents, copyrights, trademarks, reputation, and know-how.
• Grants, funding agencies, and other sources of revenue.
• Activities and processes - the applications you execute and the systems you use.

Afterward, you can add the external factors that represent the opportunities and threats. Forces and facts over which your organization has no influence include:

• Future trends in your industry.
• The economy, whether local, national, or global.
• Sources of funding include foundations, donors, and investors.
• Legislations that might affect your business.
• Demographic changes such as changes in age, race, gender, family structures, birth rates, etc.

Step 3: Analyze your data

After you answer all these questions, you can use this data to think of ways to modify your business and improve it. Look at each block and write down suggested enhancements that will improve your overall performance.

Case Study

Merna is the CEO of a consulting start-up, looking for a development strategy. She gathers her team and does a SWOT Analysis. Merna started her Swot analysis by performing research and learning that she should begin by identifying the internal factors (S, W) and then move on to the external ones (O, T)

Following the team's study, Merna determined that the company’s primary assets are its agility, technical competence, and low overheads. Because of this, They are able to provide exceptional customer service to their client base.

The company's weaknesses are related to their small size. To enhance the abilities of the small number of employees, Merna needs to invest in the training and development of her employees. She also needs to develop a retention strategy to avoid losing important team members.

Merna sees potential in providing local companies and government entities with quick-response, high-value services. Given that its competitors are slow adopters, the company is likely to be the first to market with innovative products and services.

The threat is large-scale changes in the market, for which Merna needs to keep up with new technologies. Given this, she must keep a careful eye on her main competitors.