How Does a SWOT Analysis Help in Formulation of Strategies
Q. How does a SWOT Analysis helps in formulation of strategies?
Albert S Humphrey was the great discoverer of this powerful technique in the 1960s “SWOT Analysis” was as useful in the past as it is now, we can use it in two ways as a simple icebreaker helping the individuals to "kick off" strategy formulation, or in a more sophisticated way as a serious strategy tool. It is an important tool because before formulating any strategy it is very important to take a serious look at the environment. It is one of the most important steps in formulating strategy because in SWOT analysis, the best strategies accomplish an organization's mission by exploiting an organization's opportunities and strengths while neutralizing its threats and avoiding its weakness. A firm should be able to identify the SWOT factors to run properly and create strategic plans that will help the company more than it will hurt it.
SWOT not only tells us the strengths, opportunities, weaknesses and threats of an organization but it also help in generating the view that how can we overcome the weaknesses by our strengths, how the firm can achieve its targets by utilizing the enriched opportunities available in the market, how the firm can deal with the threats using its strengths and these are the initials that a strategist should know before making strategy as he should know the productivity and success of a strategy is depending upon these factors. By looking at the organizations own structure and its competitor’s outlook one can craft a strategy that can differentiate them from their competitors, so that the organization can compete and take a large pace in the
Albert S Humphrey was the great discoverer of this powerful technique in the 1960s “SWOT Analysis” was as useful in the past as it is now, we can use it in two ways as a simple icebreaker helping the individuals to "kick off" strategy formulation, or in a more sophisticated way as a serious strategy tool. It is an important tool because before formulating any strategy it is very important to take a serious look at the environment. It is one of the most important steps in formulating strategy because in SWOT analysis, the best strategies accomplish an organization's mission by exploiting an organization's opportunities and strengths while neutralizing its threats and avoiding its weakness. A firm should be able to identify the SWOT factors to run properly and create strategic plans that will help the company more than it will hurt it.
SWOT not only tells us the strengths, opportunities, weaknesses and threats of an organization but it also help in generating the view that how can we overcome the weaknesses by our strengths, how the firm can achieve its targets by utilizing the enriched opportunities available in the market, how the firm can deal with the threats using its strengths and these are the initials that a strategist should know before making strategy as he should know the productivity and success of a strategy is depending upon these factors. By looking at the organizations own structure and its competitor’s outlook one can craft a strategy that can differentiate them from their competitors, so that the organization can compete and take a large pace in the