4. Next, you will begin a SWOT analysis, assessing the company's strengths, weaknesses, opportunities, and threats. Strengths
Question:
4. Next, you will begin a SWOT analysis, assessing the company's strengths, weaknesses, opportunities, and threats. Strengths are internal core competencies (such as having award-winning product designers on staff) that give it a competitive advantage. Weaknesses are limitations inside the company (such as lacking production capacity for higher output) that might hamper its ability to achieve objectives. Opportunities are situations outside the company (such as unexpectedly high demand for a product the company can produce) that can be favorable for the product's marketing. Threats are possible barriers outside the company (such as new competitors) that might prevent it from achieving its goals. Start with strengths, inside the company. In a four-cell matrix like the example, list 2-3 bullet points about the company's core competencies, what it can do better than any other competitor, and any unique resources that it can access for competitive advantage.
5. Continue with your SWOT by considering which limitations inside the company you consider to be its weaknesses. List 2-3 bullet points about these weaknesses, explaining why each might be a problem. Separately, write 1-2 sentences explaining how you can improve and try to convert these weaknesses into strengths.
6. For your SWOT analysis, look at opportunities outside the company that you may be able to exploit by matching them with strengths. Consider what these opportunities mean for competitors, as well. List 2-3 bullet points about these opportunities and how they fit with your firm's strengths.
7. The final element in your SWOT analysis is assessing threats outside the company that you can try to convert into opportunities. In what ways could these threats change the market or the competitive landscape? List 2-3 bullet points about these threats. Separately, write 1-2 sentences about possible approaches to minimizing threats or converting them into opportunities
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton