SWOT Analysis: Meaning and Importance of SWOT Analysis | Management
by Smriti Chand Management
Swot Analysis: Meaning and Importance of Swot Analysis!
Meaning:
One of most widely used strategic planning tools is a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Most companies use it in one form or another. SWOT analysis is often used as basic guide for strategic planning.
The worth of SWOT analysis is often dependent on the objective insight of those management individuals who conduct the SWOT analysis. If management (or consultant management) is able to provide objective, relevant information for the analysis, the results are extremely useful for the company.
The term SWOT is the acronym made up of four words viz., Strengths, Weaknesses, Opportunities and Threats. The first two variables are internal to an organisation whereas the last two are external. SWOT stands for strengths, weaknesses, opportunities and threats. The first two are internal to an organisation whereas the last two are external.
The value of SWOT analysis cannot be overemphasised. It is rightly said “winners recognise their limitations but focus on their strengths; losers recognise their strength but focus on their limitations.” Positive thinking is strength whereas negative thinking is a weakness.
Every individual can make a list of his positive points (strength) and negative points (weakness). A weakness can be converted into strength by recognising it and by making an effort in that direction. Similarly, it is very important to be aware of the opportunities that come to us at various points of time and possible threats that also come from the other persons.