Let's Talk Strategy #3: How To Create A Really Simple SWOT Analysis

One of the most critical aspects of strategic planning within an organization is determining and analyzing the present and past scenarios to make better and informed decisions that would take the organization to the next level.

In achieving this, one of the best forms of analysis that top managers have used in the past and continue to apply to date is the SWOT analysis. SWOT is an acronym for Strengths, Weaknesses, 

Opportunities and Threats. It is simply a way of looking at what works for you as a business, what is not working, what could be leveraged on to get better, and what could stop you from getting to your goals.

Why Should a Business Conduct a SWOT Analysis?

In strategic planning, nothing happens spontaneously. Every action and inaction is a result of a well-thought tactic or plan by the leaders of a firm. Why then should you conduct a SWOT analysis as a business? The answer is simple. A SWOT analysis, when correctly done, is like an eye-opener because it makes you see the good, the bad, and the ugly. It also allows your firm to reposition itself for better opportunities, hence the prospects for growth and development in the short and long run.

Simple Steps in Creating a SWOT Analysis

By following the following simple steps, you can successfully create a SWOT analysis for your business and use it to checkmate your current situations and how to improve on them.

   ? Identify What You Wish to Analyze

The first thing you should do is to identify what you wish to analyze. Are you looking at the whole business, or you are considering some functional areas like sales, for instance. Once you have identified the exact thing, you are want to conduct a SWOT analysis. Let’s say the sales aspect of your business for this write-up; then, it’s crucial to dig up all the details relating to that department.

   ? Examine Your Strengths

From the department or aspect of the business you have singled out for analysis, examine what exactly you are doing right for the moment. Why is your sales team doing so well compared to the other departments? Is it because of the excellent sales representatives? If yes, pen that down and make sure you understand exactly why your sales representatives are so good at their jobs.

   ? Determine Your Weaknesses

After examining what has been working so well, it is also important to determine what hasn’t been going smoothly. Why are you having the issues that are derailing the progress of the sales unit? Why is the sales team in spite of the glaring amount of capable hands lagging in productivity when compared to the sales team of the next firm? Why is the sales team of the next company closing more deals than that of your company even when you are sure they don’t a better workforce? The solution lies in how honestly you answer these questions and what you do to improve the weaknesses.

   ? Look Out for the Opportunities

After determining your weaknesses, you must also look out for the opportunities that are available in your industry and find ways to leverage them. How you leverage opportunities will determine whether you would stay ahead or close the gap between you and your competitors as the case may be. Is there a new and uncharted territory that your sales team could focus on and use to increase your sales figures? That is an opportunity. Look out for more of those and find a way to handle each opportunity to improve your business.

   ? Minimize the Threats

What are the things stopping you from doing well? Threats could be within or outside the confines of your organization. Is there a new product out there that is not allowing the sales team to make enough sales? Is there a new government stipulation stopping prospects from buying enough of your products? Is your sales strategy focused on only the rich and sidelining the middle and lower class members of the society? All of these are different kinds of threats that a potential sales department could face, and it is the way these issues are handled that would help the unit or firm come out on top in the end.

Click here to download a SWOT Analysis Template that I've used in the past.

In strategic management and planning, there are no two ways to solving issues; it is always planning, planning, and continuous planning until the problem is solved. Managers are problem solvers, and they are rated on their ability to solve problems that arise within an organization. One of the best ways to address issues that arise within your firm in management is to come up with a SWOT analysis and use the truth of your findings to correct anomalies.

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