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Good internal business communications

A SWOT analysis is a useful business tool for brainstorming and strategic planning. You’ll get more juice from your SWOT analysis if you conduct it with a specific objective in mind. For example, you can use a SWOT analysis to help you decide if and how you should:

  • take advantage of a new business opportunity
  • respond to new trends
  • implement new technology
  • deal with changes to your competitors’ operations.

Building On Your Business Strengths

A SWOT analysis will help you identify areas of your business that are performing well. These areas are critical to the overal success of your business – if you have no strengths left in your business then your business will clearly fail. But also if you can examine your strengths and then build on them not only can you maintain your business in good standing you can also improve upon it and make it even stronger.

Eradicating Weakness

Conducting a SWOT analysis can help you identify weakness(es) in your business. This can often be difficult to look at – as natuarally you are biased to your business, it can be hard sometimes to admit you have a weakness in your business. A big part of many businesses weakness is actually in admitting they have a weakness – all too often companies ignore their weaknesses and concentrate on their strengths hoping that their strengths will conquer their weakness.

Business Opportunities

Business opportunites usually arise from external factors to the business such as new consumer trends. By carrying out a SWOT analysis you will be able to see the internal factors (your business’s strengths and weaknesses) that will tell you if you can take advantage of new business opportunities that come your way. For instance you may decide to go with the flow and jump on a new craze – this could backfire if you don’t have the skills which could jeopardize your existing business – give you a bad name for example and lose you your existing customers. For example Group 4 were given a tarnished name during the 2012 Olympics as they couldn’t provide enough security that they said they could provide. Fortunately for them their organization makes more money from other countries outside the UK and the whole situation has long since been forgotten about…but this is the sort of thing where a business can overstretch themselves and then fail completely like an elastic band.

Counteracting Threats

Threats are external factors that could cause problems for your business, such as changes to the market, a competitor’s new advertising campaign, or a change in the law. A SWOT analysis can help you identify threats and ways to counteract them, depending on your strengths and weaknesses. A good exampe of law changes are for public places ban on smoking. Lots of drinking establishments have closed due to people not being able to smoke inside them any longer

Addressing Individual Issues

You can conduct a SWOT analysis to address individual issues, such as:

  • staffing
  • business culture and image
  • organisational structure
  • advertising
  • financial resources
  • operational efficiency.

When you’re conducting an individual SWOT analysis, keep in mind that a strength for one issue might be a weakness for another. You might also identify a weakness, such as a gap in the market that you’re not covering, that could be an opportunity for your business.