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Do you know what the SWOT Analysis is ?
A SWOT analysis is a subjective assessment of data which is organized by the SWOT format into a logical order that helps understanding, presentation, discussion and decision-making. The four dimensions are a useful extension of a basic two heading list of pro's and con's .
Why SWOT Analysis is important for investment on business ?
SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade its users to compile lists rather than to think about actual important factors in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of individual SWOTs will be revealed by the value of the strategies they generate. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important.
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Strengths and Weaknesses |
the internal environment - the situation inside the company or organization |
for example, factors relating to products, pricing, costs, profitability, performance, quality, people, skills, adaptability, brands, services, reputation, processes, infrastructure, etc. |
factors tend to be in the present |
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Opportunities and Threats |
the external environment - the situation outside the company or organization |
for example, factors relating to markets, sectors, audience, fashion, seasonality, trends, competition, economics, politics, society, culture, technology, environmental, media, law, etc. |
factors tend to be in the future |
The China SWOT Analysis main content :
A major part of SWOT analysis is how you implement your strategy based on the data you have received. Listing down all the strengths and weakness, while identifying all the opportunities and threats are of no use if you cannot implement a strategy. You have to utilize the strengths of the firm and take full advantage of the opportunities that open up. Minimizing the weaknesses is also a key factor. You need to come up with ways to either improve on your weaknesses or eliminate them altogether. This combined with avoiding threats or combating those threats will ensure that the business will only provide fruitful results
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