Organizational survival depends on keeping the organization alert to developing trends and economies. SWOT Analysis is a method for strategy formulation and implementation used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in the early stages of change management. A corporation, product, or process that is not regularly examined and evaluated cannot understand why it has succeeded or why it has failed. A business that objectively and systematically examines its processes can take steps to improve on what worked well and modify or eliminate what worked poorly. The purpose of making strategic marketing changes or process improvements is to enhance opportunities for organizational success. Organizations must be prepared to implement change effectively or die. The SWOT Analysis will analyze and evaluate several environmental aspects that could optimize or diminish the desired outcome of the project. The audit will research fluctuations in the organizational, industry-wide, and geographic culture, explore economic, demographic, and market variables, investigate deviations in legal, regulatory, and compliance issues, and assess organizational and competitive technological advances, changes, and obsolescence. It will reveal barriers to new entrants, and copy-cat products and services.
Significant to the accuracy of the SWOT Analysis is anticipating trends within the industry. Keeping an eye on competition is crucial to making appropriate adjustments to maintain competitive advantage. A SWOT Analysis involves thorough evaluation of all elements of strategy and formulation.
· Strengths: Constructive Organizational attributes
· Weaknesses: Destructive Organization Attributes
· Opportunities: Constructive external conditions
· Threats: Destructive external conditions
Correctly identifying the components of a SWOT Analysis is critical. Subsequent steps in the process of strategy formulation for the purpose of the achievement of organizational objectives may be derived from the analysis.