Meaning and definitions of SWOT analysis

Provides analysis to solve any problem. A SWOT analysis is an experimental analysis by any business to understand its internal and external environment. This method is an analysis based on experiences and experiments. Present time SWOT analysis is also used in the recruitment and training of employees.

According to Philip Kotler, “A SWOT analysis is a complete assessment of the strengths, weaknesses, depressions, and difficulties of a company.”

SWOT analysis is used in an organization to formulate effective organizational strategies because by this analysis a business can identify the strengths/capabilities, strengths (S) weaknesses (W), and opportunities present in its environment. Can compare Opportunities (O) and Problems/Difficulties and Threats (T).

parts of SWOT analysis

The main components of SWOT analysis can be explained as follows:

1) Strength / Capabilities

It has to do with all those elements already existing in the organization. • Using which the business earns an advantage over its competitors, such as good research facilities and maximum potential for development in an organization is the capability/power of a business. They are also used for the development of new products and for discovering the principles for the organization and the organizations the rules of new management, that is, a business should make a list of the positive qualities existing in itself which are directly related to them.

(2) Weaknesses

This refers to the limitations existing within an organization, these limitations are the weaknesses. This makes the business weak in front of the competitors and the business can work better and smoother than its competitors; As a part of a business, the dependence on the product chain is its weakness, which is very harmful. If a person wants to be aware of his shortcomings, then he can know his weaknesses by asking this question himself. For example, is he a good communicator? Is he computer literate? Is there a lack of belief in these things?

(3) Opportunities

Opportunities are all favorable conditions located in the environment of a business. It is these circumstances that motivate the business to face its competitors and strengthen itself. Here a person or business needs to know whether he is capable of taking advantage of an opportunity? Does he have the ability to excel in his business?

(4) Problems/Difficulties/Challenges

Existing in a business number unfavorable • Circumstances only emerge as problems for the business. These are very harmful to the organization's decision-making. If we discuss in the context of a person, then he needs to know whether there is any difficulty in terms of his career relations and promotion, then at this stage, he should not consider himself weaker than others.

Importance of SWOT Analysis

Policy and making the making are based on real ground. For successful strategy formation by the organization, business, and individual, the real ground is required, otherwise, the strategy cannot be effective. SWOT analysis is also an important method of strategizing based on a real surface. The usefulness of this analysis method can be explained by the following headings

(1) Analysis of external factors

What is happening in the environment outside the organization, business, or individual, what are the major challenges that are likely to happen, and how those challenges can be converted into opportunities. From the point of view of a business organization, a thorough analysis of competition, government policies, new research, customer interest, investment return, etc. is done.

(2) Analysis of the internal elements

The organization, business,s or individual analyzes their capabilities dynamically. Competence or incompetence can be assessed by analyzing weaknesses and strengths. From the organizational point of view, communication, marketing, production, operations, human resources, and capabilities and capabilities of the organization as a whole are analyzed.

(3) Goals and Objectives

SWOT analysis is the strategy to achieve goals and objectives. There is always readiness towards objectives and goals through a strategy based on the analysis of internal and external elements because opportunity, challenge, and weakness-power are the means and ends of achieving the objective.

(4) Creative process

Creating strengths and opportunities by identifying challenges is a creative process. SWOT analysis is a process based on a healthy attitude and meaningful exchange-based Analysis oof based off of assumed assumptions is ineffective.

(5) Continuous Process

It is a continuous process. In the life of business, organization, and individual, the cycle of challenges and opportunities continues like a continuous cycle. New challenges are constantly emerging and accordingly, opportunities are constantly being searched for.

(6) Development of work culture

SWOT analysis is based on the existing beliefs and analyzes the real ground and makes effective strategies towardstowardand objectives. As a result, effective work culture develops in the life of the organization, business, or nd, individual.

Criticisms of SWOT Analysis

The major criticisms of SWOT analysis can be explained as follows:

(1) Situation-Based The analysis advert shapes vertical an Analysis

SWOT analysis is the process of analysis based on the prevailing circumstance analysis shapes a natural law. The analyanalysismes is meaningless when circumstances change.

(2) Various Ideologies

SWOT analysis is the analysis of facts based on ideas and marks. At the organizational level, there is a natural process when there is a difference of opinion (perception) between the managers. There are differences of opinion regarding strengths-weaknesses and challenges-opportunities and thereby affecting the reliability of SWOT analysis.

SWOT analysis creates a sense of curiosity and analysis of opportunities and challenges in the individual, organization, and business and creates awareness of the opportunities. SWOT analysis is a complete analysis of capabilities through analysis of organizational weaknesses and strengths. SWOT analysis develops the skills of businesses, managers, and individuals and provides an in-depth view.

Methods of SWOT Analysis

Following are the two main methods of SWOT analysis

(1) Matrix Method

Under this mathematical method, there is a systematic analysis of strengths, weaknesses, challenges, and opportunities, which is prepared by making a tabshavert shshavershapesapes according, ding to this method, the analysis is divided into the following three parts

(a) Determination of challenges and opportunities

There are many cpaddleeforbusinessesess, pppaddle orrganizationspaddle businesses orThe analysis and verticalshapespaddle Challenges created by competition, new research, quality, government policies, or other external business environment are met. Opportunities are discovered from challenges. Determining the challenges and opportunities presents as follows

challenges

1. Entry of new technologies in the field of communication.

2. Tax concession by the government on new investment.

opportunity

1. Market expansion opportunity.

2. Opportunity to enter the market by making new investments.

(b) Identifying the strengths and weaknesses

the business and its functional areas; For example, physical resources, financial resources, human resources, communication resources, intangible resources, strengths, and their limitations are called weaknesses. The identification of strengths and weaknesses is marked by multiple analyzes and in-depth discussions between partners. Weaknesses and strengths are identified to convert opportunities into opportunities.

(c) Analysis and evaluation by matrix table

SWOT analysis is an experience-based-tech process. Presents the strengths, weaknesses, challenges, and opportunities in a table as follows

Write strengths and weaknesses in columns and challenges and opportunities in rows.

(ii) Analyze the challenge and opportunity concerning each strength and weakness.

(III) If the above component is positive, then (+) sign, if the above component is negative then (-) sign.

(iv) Matrix Table

(2) Cross shape method

SWOT is the traditional descriptive method of analysis. In this method, strengths, weaknesses, opportunities, and challenges are identified in the respective perspective and a list of them is made, which is displayed in a systematic order in a cross. That's why it is ca the oss shape method.

powers Weaknesses

1. Accumulation fund of ₹ 50 lakh available 1. Lack of hi-tech-based community ls.

2. Congenial atmosphere among the employees 2. Delay in Feedback Process

and Availability of inferiority complex.

opportunity challenges

1. Market expansion opportunity. 1. Entry of Technologies in the field of communication

2. Market Opportunity on New Investments 2. Tax Concession by Government on New Appropriation

In this, a fact is selected by divine observation and evaluated. Similarly, all the facts are evaluated by many groups and levels and lastly, they are evaluated by doing a comprehensive analysis.

SWOT analysis has its own importance in management. It helps in solving the complex problems faced by the managers.