Strategic Leadership: Why SWOT Analysis is Still Your Best Tool
Many different tools are available to analyse businesses and evaluate their performance. However, few of them are as tried and true as the SWOT method. Have you done your SWOT analysis lately? As a business owner, this is a question that you may want to be asking yourself on a regular basis. After all, there is a reason that many Fortune 500 companies use this method to evaluate the performance of their business, and to develop strategies and plans that help them improve this performance based on the results of each SWOT analysis. This is a method that can help you look inside your business and develop an effective model for leadership and long-term success.
What is SWOT Analysis for Businesses?
The term SWOT is an acronym for “Strengths, Weaknesses/Limitations, Opportunities and Threats.” This analysis method was developed in the 70′s by the Stanford research team SRI International. It has since grown into a model of success and leadership for businesses across all industries in any region of the world.
How is SWOT Analysis Used to Help Businesses?
Even though the SWOT method is a technique developed by one of the world’s most renowned research centers, it may seem that it is an inherently simple technique to use. Do not be fooled, however; SWOT analysis may appear simple, but it is extremely powerful. That is why so many successful Fortune 500 companies have used this technique to make improvements to their business strategy.
When developing the SWOT analysis to maximize the effectiveness of your company, using a matching and converting method can be a good strategy. The goal of this method is to match your strengths and opportunities while simultaneously converting your weaknesses and threats. This method helps to create successful business planning and strategies that will help your business succeed.
SWOT analysis can be used to identify many distinguishing characteristics of the business model that you have created; it can also help in breaking down the details of your business strategy and in making improvements in weak areas. There are many aspects of a business that often tend to go overlooked; that is why, in some cases, serious problems and even complete failure seems to come out of nowhere. SWOT analysis for businesses is a way to shed light on weaknesses and areas that are in need of improvement within any company.
Why SWOT Business Analysis Method is Still the Best Method of Business Analysis
The SWOT method of business analysis has been used for several decades by many of the world’s biggest companies to develop a strategy for success. There is a good reason for its longevity: the methods works. In some cases, a more complicated method of business analysis will only result in obscuring relatively straightforward results. With the SWOT business analysis method, a company will be able to incorporate information from many sources to create a useful, yet simple, analysis of their business.
SWOT analysis has proven effective and beneficial for many different companies for so many years primarily because it gives businesses what they need: the flexibility to expand and growth. If a business does not grow, it will eventually die. This is because a business that rest on its laurels instead of continuing to grow and adapt will eventually lose market share to competitors that are willing to grow and adapt. Using methods like SWOT analysis to help your business grow and to understand its strengths and weaknesses, therefore, can be vital. Business analysis is one of the most important things you can do to help your business develop a strategy to grow and succeed over the long term.
This guest post was contributed by Sarah Rawson. Sarah is a tutor for various online EMBA programs. She also moonlights as a freelance writer. Her articles appear on higher education blogs.