A SWAT or SWOT analysis is a planning method used to evaluate strategically the Strengths, Weaknesses, Opportunity and Threats of any project or business investment. It analyses both the internal and external factors that can affect the project or business and to see how these can lead to success or failure of the project or business (Armstrong, 1982). Strengths It is important to identify and carefully define the strengths of the business. This can be done by defining the areas that the project is competent in and how analyzing the resources that are available to the project or business.
It might help for one to identify where the project or business excels and the business strength in the market and how this can be used to beat the competition. The organization should also have a clear strategic direction and the organization must have an ability to produce an environment and culture of positivism in its dealings (Armstrong, 1982). Weaknesses It is important for the organization to have a liability evaluation. This involves looking into what the organization can improve and where it performs poorly.
It should also analyze on what aspects should be avoided. One important element to look into weaknesses is the ability or inability of the organization to be able to finance the important technology necessary for the running of the organization. It is also important to detect if the organization has any financial problems (Armstrong, 1982). Opportunity This is where the organization deals in analyzing the attractiveness of the market and the customers. It should address such issues as the favorable circumstances that the organization is facing in its field or market.
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There is also need for the organization to look into the possibility of venturing into new fields or markets (Armstrong, 1982). Threats It is also important for an organization to analyze the competitors’ behavior and their challenges. This will help the organization in identifying the obstacles that it faces and what the competition is doing about such obstacles (Armstrong, 1982).
References: Armstrong, J. S. (1982). “The Value of Formal Planning for Strategic Decisions”. Strategic Management Journal 3: 197–211