SWOT ANALYSIS

SWOT Analysis
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SWOT analysis is a technique that is employed by companies to identify both internal and external factors affecting an organization. The internal factors of a company are its strengths and weaknesses while the external factors are a company’s opportunities and threats. A company can then use this information for planning on how it can accomplish its goals and objectives. Internal factors show where a company needs to capitalize on to increase profits and the areas that need to be improved. External factors indicate the area that a company can invest and areas where the company needs to take caution due to competitors.
There are various advantages of SWOT analysis. The SWOT matrix is quite simple to understand. It only requires one to identify the strengths, weaknesses, opportunities and strengths of a company. It is easy to understand the objectives of a SWOT analysis. SWOT analysis also assists a company to be more informed about its position in the market. The knowledge can empower the company to take an informed decision that would take the company far. SWOT analysis is cost effective since it requires little time since research is limited. It does not require that use on many resources to get the information. The information from a SWOT analysis can be effective in ensuring that a company creates an effective plan to be used in the next project (Pahl, 2007).
On the other hand, SWOT analysis is subjective in nature since it depends on what other people see the company be.

What one individual considers to be the strength of a company another could consider that to be classified as a weakness. One person carrying out a SWOT analysis could come up with a different list of the factors as well as conclusion compared to another person given the same situations. The information generated using this technique becomes obsolete quickly as this method only considers current data. If improper data is collected, a company can make poor decisions.
ReferencesPahl, N. &. (2007). SWOT Analysis. Idea, Methodology And A Practical Approach.