This is the complete SWOT analysis. It includes analytical relationship of internal and external environment: Leverage, Constraint, Vulnerability, and Problem.
2. What is SWOT Analysis?
The SWOT Analysis is an important
strategic tool. It helps companies make
sound strategic decisions by looking at
their controllable/internal environment,
look at the external/uncontrollable
environment.
3. Internal vs. External Environments
In analyzing a company’s current strategic
position, it is important to look at what the
company has control of (the internal
environment), and what it does not have
control of (the external environment).
4. The Internal Environment
The Internal Environment of a company
includes the things the company can
control. These are the Strengths and
Weaknesses.
When you look at the these, look not only
from the company’s point of view, but also
from the point of view of outsiders. Be
realistic in your assessment.
5. Strengths
Your strengths should cover:
What do you do well?
What advantages do you have?
What resources do you have access to?
What do others see as your strengths?
This is a good starting point, but not a
limiting point in your analysis of strengths.
6. Weaknesses
Your weaknesses should cover:
What do you do badly?
What are things that need improvement?
What do you do that you should avoid?
Again, this is a good starting point, but try to
look beyond these questions in analyzing
weaknesses.
7. The External Environment
The External Environment is everything that is
outside of the company’s control.
These are the Opportunities and Threats.
1. Legal
2. Political
3. Social
4. Economic
1. “...demand for...”
5. Technological
6. Global
7. Competitive
8. environmental
8. Opportunities & Threats
Opportunities- What elements of the
external environment could benefit the
company?
Threats- What elements of the external
environment could hurt to the company?
9. What Next?
Now that you have identified the company’s
Strengths, Weaknesses, Opportunities,
and Threats, it’s time to put them together
and understand what they mean.
10. Leverage
Leverage is when a strength allows you to take
advantage of an opportunity.
Internal (Controllable) LEVERAGE External (Uncontrollable)
Strengths Opportunities
Weakness Threats
11. Constraint
Constraint is when a weakness prevents you
from taking advantage of an opportunity.
Internal (Controllable) External (Uncontrollable)
Strengths Opportunities
CONSTRAINT
Weakness Threats
12. Vulnerability
Vulnerability is when a threat attacks a
strength.
Internal (Controllable) External (Uncontrollable)
Strengths Opportunities
VULNERABILITY
Weakness Threats
13. Problem
Problem is when a threat attacks a weakness.
Internal (Controllable) External (Uncontrollable)
Strengths Opportunities
Weakness Threats
PROBLEM
15. SWOT Analysis
Once you have identified the Leverages,
Constraints, Vulnerabilities, and Problems
facing the company, you can make
recommendations for the company to
move forward and improve its market
position.