How do I conduct a SWOT analysis for my business, and why is it important?
Much more than a study, the SWOT analysis is directly linked to the evaluation of your organization and assists in the decision-making process.
Founded by the American Albert Humphrey (1926-2005), a business and administration consultant, SWOT analysis is among the main concepts and techniques when thinking about marketing. It was developed to analyze organizational scenarios and support the decision-making process.
When is the SWOT analysis done?
As a rule, the SWOT analysis is usually carried out before implementing new projects in the organization so that it is possible to measure the impact and viability of such tasks. Furthermore, it is also essential to understand your strategic positioning in the market and to implement possible improvements in services and products, among other functions.
It is worth mentioning that the SWOT analysis provides a simple and introductory diagnosis: it is usually a good starting point, but more is needed to cover all the topics for decision-making and research of the company’s organizational context.
What does the SWOT analysis acronym mean?
The acronym SWOT comes from the English Strengths, Weaknesses, Opportunities and Threats, which, in literal translation, means Strengths, Weaknesses, Opportunities and Threats. It is expected to find some websites and studies that refer to them in a Brazilian manner, referring to them as SWOT analysis (Strengths, Opportunities, Weaknesses and Threats).
Regardless of whether it is written as a SWOT or SWOT analysis, both have the same meaning and the same objectives, so avoid getting too attached to the vocabulary. When carrying out the SWOT analysis, it is essential to remember that the elements that compose it can be subdivided into two groups: the aspects of internal variables and those of external variables.
Internal variables (Strengths and Weaknesses):
Internal variables are those concentrated within the organization, covering the strengths and weaknesses of the business. As the name already implies, if the variables are internal, the company controls them. Understand better with the examples listed below:
- Time in the market;
- Company location;
- Your reputation;
- Financial resources and human resources;
- Management and marketing;
- Access to raw materials, materials and equipment;
- Operation capacity.