How can SWOT be applied to a company?

Answer 1

SWOT can be used in any organization, and also within ones personal live. However, you will find it is most commonly used in business. It is a critical form of analysis for companies, and can mean the difference between stability and long-term survivability or failure. A good SWOT analysis can promote more of a market share, thus building a healthier business. Every company needs to look at its strengths, weaknesses, opportunities, and threats so it can maximize its strengths and opportunities while minimizing its weaknesses and threats. It is a good way - in part - for a company to self analyze. Typically, a company uses the SWOT analysis as it relates to its internal and external driving forces that affect the way a company operates in either a positive of negative way. Internal driving forces typically relate to the things, circumstances, situations, and events, that occur within the company, and which are by and large under the control of the company. For example, the company's technological capabilities, finance, human resources management practices, building maintenance, employee moral, etc. External driving forces relate to those things, circumstances, situations, and events, which occur outside the company and are by and large beyond the company's control. These might include, the economy, demographic changes, what the competition is doing, and even weather, etc. All the above can be gathered and considered through the use of a SWOT analysis. This why it is critical to use appropriate informational resource mechanisms to ensure the best practice in gathering accurate information where the business as a whole is the primary focus, and not individual, or department interests where it may dilute or skew the results and outcome of the analysis. I hope the above is of some help to you.