SWOT ANALYSIS ,lets--study

 Swot analysis is well tested evaluation technique of internal and external factors. This technique is based on experience and tests. This technique with the help of various factors received from information, works for strategy management. Swot word comprises of various words viz

INTERNAL FACTORS

1-S-STRENGTHS

2-T-THREATS

EXTERNAL FACTORS

1-W-WEAKNESS

2-O-OPPOURTUNITIES

Internal factor: These are the factors which are available in an organisation or an individual According to the analysis these are kept in two groups. 

(1) Strengths:In every organisation, business or individual there are its own strengths. They are called specializations. They are also called positive points like in individual or personal communication right pronunciation, knowledge, proper language and in group communication presentation in a proper and sequential way of information are the positive points, attracting the listeners and in a discussion givin logical answers to the questions are the main strengths. 

(2) Weaknesses :Every individual, business and organisation have some weaknesses and the main factor is to indicate them. Weaknesses are the negative points. Like in personal interaction mis pronunciation, speaking fast, incapability to attract listeners, and lack of effective listening are the main weaknesses

External Factor: These are those factors which are from external environment.Like supplier, new competition seller, supplementary things, government etc. are divided into two groups.

Internal Factors: These are the result of external environment. They are called opportunities and threats.

(A) Threats: Society and external environment gives birth to threats. Every organisation, business or individual which in the path of success, has to face threats. In actual these threats only become opportunities after wards. Like in communication new medium like internet, E-banking, E-commerce are the threats.

(B) Opportunities: In the success of a business, to take advantages of opportunities are most in portant. In the life of organisation, people and business, they face many opportunities. By utilizing these opportunities only one can reach to the top In reality these opportunities play the role of ladder to reach to peak of success. For eg like many businessman by utilizing E-commerce have provided the globalization of business Like every coin has two faces, similarily every business also has two faces of strength and weaknesses. Every threat provides an opportunity. In this analysis the interrelation between threat-opportunities and strength- weaknesses are studied. This is also called SWOT analysis.

                   TECHNIQUES OF SWOT ANALYSIS

The behaviour of SWOT analysis has two important techniques, which are as follows:

(1) Matrix method: In this mathematical way the structured analysis of strength, weaknesses, threat and opportunities has been done, which has been presented in a form of time table. In this technique analysis can be divided into three parts:

(A) Determining threats and opportunities: There are many threats in an individual, business and organisation Competition, new research, quality, government polices and other commercial environment relate opportunities are received. From threat opportunities are reached. The determination of opportunities and threat are presented below

THREATS ; 

1 - Entry of new technologies in communication area.

2-Relaxation by government on new inventories.

OPPOURTUNITIES

1-oppourtunities for expoansion of market

2- New investment tax entrance on to market

(B) Identifying Weaknesses and Strengths: Business and other business areas like-geographical research, financial resources, human resources, qualities are called their strength and their limitations are called its weaknesses. The identification of weaknesses and opportunities are based on analysis and close examination. It changes events into opportunities, and weaknesses into strengths. This can be clarified by following examples:

\WEAKNESS

1-Based on technology , lack of communication medium , delay in feedback process 

STRENGTHS 

10lakh rupees store available, better coperation among employees

(C) Analysis and Evaluation through Matrix table: Swot analysis is an experience based process. The presentation of strength, weaknesses, opportunities and threat are presented in the following table.

(1) Column of strength and weaknesses and row of opportunities and threats are written.

(2) opportunities and threats are analysed in context of each and weakness.

 (3) If the factors are positive they are marked, and if they are negative then they are marked. strength

(4) By making matrix table comparing results of positive and negètive results 

(D) Cruciform Method: Swot analysis is a traditional and explanative procedure. By understanding the nature of strength, weaknesses, opportunities and threats, preparing a table in form of cross, That is why it is called cruciform method.

             IMPORTANCE OF SWOT ANALYSIS

Planning and policy are based on reality. By organisation, individual and business for successful strategy formation knowledge of reality base is required, otherwise strategy formation cannot be effective SWOT analysis also is a strategic formation technique based on reality base

(1) Analysis of External factors ;Through analysis of external factors, the threats can be changed into opportunities which are from external environment, which are beyond the reach of an individual, organisation or business competition, government policies, new research, concentration of customers etc. are analysed from the point of view of organisational structure.

(2) Analysis of Internal factors: Organisation, business or individual evaluates its strengths By analysing strengths and weaknesses, the capabilities and in capabilities can be determined from the organisational point of view communication, marketing production, operation, research and development, human development and the whole organisation's strengths and weaknesses are analysed.

(3) Mission and objectives: Swot analysis is the strategy formation to achieve aim & objectives. If on the analysis of the internal & external factors the strategy formation is based then there is more probability that objectives will be achieved, because strength, weakness, opportunities & threat are the factors, means & ends of accomplishment of objectives & goals 

(4) Creative Process: By realising the threats creating strengths and opportunities is a creative process, Swot analysis is based on healthy point of view and logical ideas. On the basis of assumptions this analysis is in effective.

(5) Continuous Process: This is an on going process. The process of opportunities and threat goes on continously in a business, organisation or individual's life. 

(6) Development of work culture: Swot analysis is based on assumptions, depends on the reality base and creates the effective strategy for objectives and goals. As a result in an organisation, business or individual effective work culture develops.

CRITICISMS OF SWOT ANALYSIS

The main criticisms are as follows:

(1) Analysis depends on Circumstances: Swot is a technique based on present circumstances Change is a natural principle. Due to change circumstances the analysis becomes meaning less.

 (2) Different perception: Swot analysis is that analysis which is based on ideas and facts. At the organisational level the difference in opinion of managers is normal.

 The vole towards strength, weakness, opportunities and threats are different due to which swot analysis is not reliable 

.On the basis of above two criticisms we can say:

SWOT analysis generates enthusiasm in individual, organisation or business towards opportunities and threats; and makes them aware of opportunities.

SWOT analysis, by the analysis of organisational weaknesses and strengths is an analysis of over all capabilities. Swot analysis develops expertise in business men, managers and individuals and provides them mature out look.

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