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SWOT Analysis

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Swot stands for strength weakness opportunities and threats. It is the process by which internal strength and weakness of an organization and external opportunities and threats are identified. The structural planning method to evaluate strength weakness opportunities and threats of an organization is known as SWOT ANALYSIS. It can be done for a person, company, place or a venture. It involves the main objective of a business or venture and identification of internal and external elements that are favorable or unfavorable for it. It is the essential tool used while understanding or decision making for all sort of situation in an organization.  It is essential for auditing and organization and its environment.  It helps in focusing on key issues. The organization should aim to convert its weakness into strength and threats into opportunities; This will help in matching the internal strength with external opportunities which further will help in improving the competition level of an organization. If the swot analysis is undertaken successfully will automatically increase ROI, i.e., return on investment of an organization. Strengths are the characteristics of an organization that gives advantages to the organization over all the other organizations  whereas weaknesses are the disadvantage to the organization over all the other organization. Opportunities are the elements in the environment that are beneficial for the organization where as threats are the disadvantages for the organization.identification of swot is important as they help in the process of planning to achieve the objective.
The main objective of swot analysis is to identify the main internal n eternal factors essential for attaining the objective of an organization. Swot analysis is divided into two categories .ie.
Internal factors: - consist of strength and weakness of the organization.
External factors: - consist of opportunities and threats to the organization.
Internal factors .ie. Strength and weakness may vary depending upon the objective in other words strength for one objective may be the weakness for other. The factors should include all the 4Ps, i.e.,(  product, price, promotion, physical distribution  ) and financial, personnel, and manufacturing capabilities.
External factors include macroeconomics, social-cultural change and, technological  change as well as the change in market place. The results are presented in the form of the matrix.
Human resource- human resource consists of top management, staff, board members, etc. who works in an organization to achieve its objective efficiently and effectively and are also the representative of the organization.
Physical resources- physical resources consist of location, building, equipment which are the necessary resources used in an organization.
Finance- are the grants, funds, another source of income which is again necessary for an organization to work.
Activities and processes-  it is the program which an organization involve and system they run
Past experiences- past experiences portray the reputation of an organization, and they are also the building block in learning and success.
The economy- it consists of local, national and international factors which directly affects the organization.
Demographics- demographics are the changes in the race, age, gender or the existing culture.
Legislations: Various legislations require that the business firms must adhere to the legislations and the laws as proposed by the government and operate according to them.
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