It is necessary for managers to complete a SWOT analysis. It stands for Strength, Weaknesses, Opportunities, and Threats. SWOT analysis is one of the most used tools by leaders, and with good reasons. Managers need to have it because it is a simple but useful framework for analyzing the organization’s strength, weakness, opportunities, and threats. It can help a manager build on what the company does well, address things that lack, minimize risk, and take the highest possible advantage of opportunities for success. Strengths and weaknesses are internal in the company- things that a manager can control and change. SWOT analysis can help the manager to handle the team, the patents, and intellectual property. When used correctly, identifying strengths, weaknesses, opportunities, and threats give a basis for effective strategic planning.
A manager can also use SWOT analysis as a framework to evaluate his/her company’s competitive position and come up with strategic planning. A SWOT analysis evaluates internal and external factors, in addition to present and future potential. It can help a manager to preciously identify the areas where the company is already succeeding and those the company needs to improve. The manager can use the information gathered to make actual changes to the business or organization by SWOT analysis (Gürel, 10). The most significant parts of SWOT analysis are Coming up with conclusions from the four SWOT category concerning the business’s general situation and interpreting these conclusions into deliberate actions to improve and match the business’s strategy to its strong resource points and market openings, to correct the significance.
Gürel, Emet, and Merba Tat. “SWOT analysis: a theoretical review.” Journal of International Social Research 10.51 (2017).