A Simple Analysis to Improve your Kingdom Business

A SWOT analysis is the part of the business planning process that examines the Strengths and Weaknesses of an organisation as well as the Opportunities and Threats that it faces. It is a tool to help management:
➢ Be aware of serious issues that may impact the business operations (e.g. new competitive threat)
➢ Adapt to a changing environment
➢ Seize new profit-making opportunities
➢ Capitalize on an organization’s competitive advantage

WHAT DOES SWOT MEAN?
Strengths = these are ‘internal’ factors that add value to an organisation
Weaknesses = these are ‘internal’ factors that detract from an organisation and can lead to business failure.
Opportunities = these are ‘external’ factors that represent future opportunities that the organisation could take advantage of to grow.
Threats = these are ‘external’ factors that can become substantial problems for a business and lead to business failure.

WHAT DOES A SWOT LOOK LIKE?
The table below highlights some of the common strengths, weaknesses, opportunities and threats to give you a guide. These will vary from business to business

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PREPARING YOUR SWOT ANALYSIS

Referring to both the table above and the questions below are some questions to help you prepare a thorough SWOT analysis:

STRENGTHS (Internal)

  • What do you do well?
  • What internal resources do you have?
  1. People Resources
  2. Asset Resources
  • What advantages do you have over your competition?

WEAKNESSES (Internal)

⊗ What areas need improvement?

⊗ What does your business lack?

  1. People Resources
  2. Asset Resources

⊗ Is your business in a poor location?

⊗ Does your product or service represent value to your customers?

OPPORTUNITIES (External)

• What opportunities exist in your market?

• Can you diversify your revenue stream?

• Could you buy a competitor?

• Are there new technologies that can dramatically improve your business?

THREATS (External)

⊗ Who are your existing or potential competitors?

⊗ What factors beyond your control could place your business at risk?

⊗ Are their negative trends in your industry?

⊗ Have there been significant changes in the input costs of your business?

⊗ What about shifts in Government regulation?

⊗ Has a new product or technology been introduced that threatens your business?

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