A SWOT Analysis for Small Business
A Business Owner’s Secret Weapon
This article gives a synopsis of how effective the business tool, A SWOT Analysis, can be in the hands of a small business owner. According to our textbook “Fundamentals of Management (Using SWOT Analysis to Formulate Strategy, p.67)” and this article “A SWOT Analysis for Small Business, (http://sbinformation.about.com/cs/ bestpractices /a/swot.htm)”, the acronym SWOT means strength, weakness, opportunities and threats. Organizational strengths are skills and capabilities that enable an organization to conceive of and implement its strategies (Using SWOT Analysis to Formulate Strategy, p.67). Organizational weaknesses are skills and capabilities that hinder or do not enable an organization to choose and implement strategies that support its mission (Using SWOT Analysis to Formulate Strategy, p.68). Organizational opportunities are areas that may generate higher performance (Using SWOT Analysis to Formulate Strategy, p.68). Organizational threats area areas that increase the difficulty of an organization’s performing at a high level (Using SWOT Analysis to Formulate Strategy, p.68). This analysis is great asset to a small business because knowing how to apply this tool will force the business owner to focus on the in’s and out’s of their company.
The Author of this article discussed the importance of a grid when creating the business tool “The SWOT analysis”. In this grid you will find four boxes. Each box are for strengths, weaknesses, opportunities and threats. A list is created in each box on what you can do in making better decisions for the business. This also leads to creating a great strategy formulation. I enjoy this article because the author truly gave a good feedback on what SWOT really means to a small business and pretty much it has a comparison to what we currently studied in class. For example, you have to out beat you’re competitor with providing to customers a...
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