Any organization, be it private or nonprofit, corporation or a government institution, regardless of size, would have leaders and businessmen who are faced with the constant demand for quality service, sector or industry competition and the need to please and satisfy present and future stakeholders. You can also read company analysis report templates.
With the knowledge that mediocrity has no place whatsoever if you want to stay in business or serve those who you vowed to serve, understanding your organization’s current position, is a must for those who are in charge in protecting an organization’s interests especially in small business.
Companies whose ultimate goal is to continue rising above the competition do not miss out in regularly analyzing where they stand in the industry and if you’re a business owner, you should be doing the same. One great place to start is to analyze your business strategies or conduct a strategy analysis to check where your business’ strengths, weaknesses, opportunities, and threats lies.
Monitoring these four areas and covering all of them properly provides a good chance for your business to map out its current positions before developing future strategies that may not work without you knowing where those strategies should be directed to help your business grow. Getting where you want to be means understanding where you are right now and there are a lot of ways for you to conduct a strategic analysis. Among the various ways for strategic analysis however, performing a professional SWOT analysis would be the most common and is arguably the most effective and realistic.
Strategic Analysis is the process of conducting research on an organization and its operations in order to formulate tangible strategies. Strategic analysis can also be defined from an academic or business perspective, but in its larger sense, the process of the analysis involves a number of similar factors:
Performing your strategic analysis by focusing on strengths, weaknesses, opportunities, and threats (SWOT) provides a way to analyze positive as well as negative factors affecting your company at present and in the future. Many businessmen determine their strategies by including SWOT analysis in their business plan but it can also be used as a different and standalone document to help realize your company’s potential or decide it’s future.
The secret to writing an analysis works and is in line with the long-term goals of your business is to be extremely honest in laying out the company’s strengths, weaknesses, opportunities and threats. It i also just as important for your management team and the other members of your organization to do the same, as well as provide real, objective feedback that you can use in forming accurate conclusions. You can also read data analysis report templates.
In the business perspective, a strategy is a plan of actions that managers take to to reach the general or ultimate goal and other goals relevant to the company’s success. With a strategy, a simple business is taking on the crucial question of “where do you want to play and how are you winning the game?” Below is a helpful guide providing a closer look and a higher overview into the business strategy, its implementation and the processes leading to business growth and long-term success.
A company has to have a clearly-defined and good understanding of its role in the industry and what it represents before you can come up with a strategy. You need to take a look at the following things:
Vision – What the company wants to achieve in 5-10 year’s time.
Mission Statement – What type of business a company does and what its brand rallies
Values – The fundamental principles of an organization, what it believes in and what it stands for in terms of company or corporate ethics. It is only after gaining a better or deeper understanding of what the company’s vision, mission, and values statements are, that strategists and business leaders can help the company perform a strategic analysis. You can also like sample gap analysis report templates.
Otherwise, anybody who takes on the task, would be clutching at straws at where to begin. The goal of a strategic analysis is to be able to evaluate and analyze both external and internal settings of an organization, including its current strategies and then draw and evaluate better strategic alternatives in the process. You can also like sales analysis templates.
As we have previously mentioned, SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are what makes up the internal factors of an organization and opportunities and threats would be its external factors. In a SWOT diagram, a business venture, project or a course of action is analyzed by focusing on those four factors. Typically, a SWOT diagram consists of four boxes, with each one representing one of the four areas. The shape however will depend on the design of the analysis document as well as the format given. You may also like gap analysis report templates.
SWOT charts or diagrams can be very useful when the management is undergoing a decision-making process such as trying to decide whether or not to embark on a project or a specific venture proposed. It can also be used for a strategy as it can help decision-makers visualize advantages and consequences. By having a clear outline of all negative and positive factors of a project, the analysis makes the decision-making process easier by quickly deciding whether or not to a project should push through.
Indicate your company’s strengths and include areas of your company culture that makes the workforce and the business in general, resilient ass well as equipment you own, especially the ones that help your operations in terms of excess capacity. Write down strong relationships with stakeholders and staff retention. These are the things that determines the future position and direction of your company so when you sit down and make a list, identify your strengths well. You will find that the process of thinking through where your company draws it strong points upon, puts you in a better position so that you can make the most out of them. You may also read sales report samples.
Identifying your weaknesses gives you a better chance to understand where your company currently stands in the industry and where it should be headed. When creating your list for this area, don’t see this as a process of critically going through what you lack but as a means of stepping back and trying to get an objective perspective. At present, your business may not be in a good position to have enough vehicle for delivering performance on the volume of product that you are hoping to sell but your vehicle situation isn’t necessarily a bad place to be but is a necessary challenge to determine so that you would be able to address it with the relatively basic steps of purchasing another van. You may also see monthly sales reports.
Your strengths and weaknesses may describe and reiterate you company’s internal factors but it is opportunities and threats which maps out the external landscape you need to address. When you think through the business’ opportunities, you need to look into fresh, new niches which you can take advantage and develop, as well as ways for your company to meet these niches and possibilities. You may also like project analysis templates.
Check current activities and try to see which areas your company’s strengths can serve you well as external situations are unveiled. Consider customer demand and how your company can meet it. For example, if you offer lawn care services, the spring season provides a good opportunity for your summer services to be marketed across the area, especially if you provide exclusive gardening tasks.
It is also imperative for you to understand the threats that your business faces to help you prepare and adjust your gears as well as goals accordingly. If you have been one of the first in a relatively abundant market but are facing a tougher competition by the numbers, you can address this threat by refocusing your branding strategies on consistency, experience and reputation. If new trends and technologies threaten your operations and renders your product obsolete, you can start thinking of ways to keep up with the competition and upgrade your product offerings to make them more relevant.
Once these questions are addressed and finalized, you can proceed to using your personal SWOT analysis in building tangible strategies towards the fulfillment of your business goals.