A business should have a passageway that guides it along with its values, vision and mission. For one to begin a business he needs to research and concoct exceptional thoughts so as to make the business effective and emerge over the other businesses as well as get customer consideration. A SWOT analysis is a universal tool for strategic business planning that allows companies to acknowledge the negative and positive influencing factors that are inside and outside a company.

Elements of a SWOT analysis

SWOT Analysis directs a business in the direction the organization want. SWOT is a matrix acronym for: Strength, Weakness, Opportunity, Threat that guides an organization to distinguish its strengths and weaknesses which are the internal factors of the organization as well as broader opportunities and threats that are represented by the external environment of an organization. Opportunities are the positives within the environment which can benefit the organization. Strengths are the advantages of an organization and what they excel at while weaknesses are what places the organization at a disadvantage relative to others and needs to be improved to avoid it in future. On the other hand threats are elements in the environment that cause trouble to an organization faces and might prevent it from attaining its goals.

A SWOT analysis, allows organizations to identify the forces that influences strategy, initiative or action. By Knowing these negative and positive elements an organization can effectively identify its risks, it can decide whether it is suitable to reduce the internal weakness by assigning the organizations resources so as to fix the problems, or to eliminate the external threat by discarding the threatened area of the business and meeting it after strengthening the organization. SWOT Analysis Communicates the parts of plans that need to be recognized.

Purpose of a SWOT Analysis

SWOT analysis is a business strategic planning process element that connects to business strategies and objectives into actionable tactics that are carried out by employees. SWOT is specifically the part of situation analysis, where an organization determines its stands in regards to the four key strategic areas so as to well determine on the changes to make. SWOT analysis helps an organization to discover opportunities as well as minimize risk. It evaluates a firm situation as well as generates the possible alternative strategies. (Wheelen, T.L. & Hunger, J.D. 2012) states that “the opportunity factors have no real value unless a company has the ability to take advantage of that opportunity” strategy formulation includes development of a firm’s strategy, mission, objectives and policies.

Strengths and Weaknesses-The purpose of using SWOT analysis to assess strengths and weaknesses is that it helps an organization to confidently understand the advantages of its core market as well as the areas that competitors may disapprove of the company for. Businesses tend to make core strengths the central point of marketing messages in trying to make differentiation from competitors. An organization should understand its weaknesses so as to decide on where to improve and where to inherent to the nature of their business.

Opportunities- When an organization explores untapped opportunities it is able to reflect on ways to grow. Strong companies generally looks for ways to grow since when they do not grow, they usually fall and give the competitors an opportunity. Opportunities could be from emerging markets or business and product developments as well as Strategic business partnerships that aim to create more sales and profits.

Threats- Companies should understand external threats to always be alert. For instance Changes in government regulations can have an effect on the level of competition or cost the companies face. Environmental conditions or standards when changed they can affect the way an organization uses natural resources. Again, Technological advances could affect companies that do not adapt to new technologies.

Advantages of SWOT analysis

SWOT analysis is advantageous in social work practice framework since it helps an organization to decide on whether an objective is accessible or not and hence enhances the organization to make attainable goals and objectives, as well as create steps to promote social change or community progress effort. SWOT gives organizers a chance to take visions and make practical and proficient outcomes that result into long-lasting change. SWOT helps organizations assemble significant information to exploit their potential. In regards to main organizational priorities, completing a SWOT analysis is a useful process. Versatility allows SWOT analysis to be used in strategic planning as well as in determining the necessity for development and competitor’s trend, vendors, and products to see the changes in cost. The cost in SWOT analysis can be used as an advantage by saving the organization money since it does not invest in a failing or risking product.


SWOT is suggested to may have harm performance such that “nobody consequently uses the outputs in later stages of the strategy”. It has been evaluated that there is misuse of SWOT analysis as a technique since it can be rapidly planned exclusive of vital thoughts leading to a perversion of strengths, weaknesses, opportunities, and threats in a firms external and internal surroundings. The advancement of a SWOT analysis basically defends previously goals and objectives that had been proposed. The misuse brings about limitations on suggested potentials and actual identification of barrier. This misuse places a firm’s interest above the well-being of the community.

What are the alternatives of SWOT analysis?

SOAR is a creative problem solving method that involves positive-thinking of analysis that identifies strengths, opportunities, aspirations and results. It uses the five key of I’s when tackling a decision thus: imagine, initiate, inquire, implement and innovate.

SCOPE planning is a situation where obstacles, core competencies, expectations and prospects attempt to take the SWOT idea further. It analyzes and aligns internal and external prospects to create a road map of strategic development.

CORE assessment start-up businesses and entrepreneurs tend to use this technique to chart their plans for future growth. CORE means Capital venture, Ownership participation, Risk measurement and Exit strategy. It shows how a business shall be funded, the structure of ownership the internal and external risks are business basic model.


Woods, J.A. (2011). Measuring Integrated Marketing Communication from Start to Finish. International Association of Business Communicators. Retrieved from HYPERLINK “http://www.iabc.com/cwb/archive/2003/1103/integrated.html” http://www.iabc.com/cwb/archive/2003/1103/integrated.html