SWOT Matrix: Schematic Resources widely used in Strategic Planning , is an analysis tool . SWOT are the acronyms that correspond to: Weaknesses, Threats, Strengths and Opportunities, from the matrix a generic vision of the internal situation and the external environment of the organization is obtained and from its reading the improvement strategies focused on Correct are derived, Face, Maintain, Exploit.
Summary
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- 1 Your goal
- 1 Weaknesses and Strengths
- 2 Threats and Opportunities
- 2 Construction of the SWOT matrix
- 1 Determination of impacts and collisions
- 2 Defensive strategies
- 3 Offensive strategies
- 4 Survival strategies
- 5 Redirection strategies
- 3 Source
- 4 External links
Its objective
The SWOT matrix is an analysis tool used in strategic planning with the aim of knowing the real situation facing the organization, its weak and strong points, threats and opportunities in the environment and establishing strategies that allow for better positioning in the market.
It establishes a matching system between each of the aspects identified in four quadrants, where the collisions that occur and how they favor or attenuate organizational development are evaluated.
A good analysis of the SWOT Matrix of the organization allows to visualize and define how the organization should operate to achieve its mission , vision and therefore define the strategic objectives in the short, medium and long term. For this it is necessary to know the Weaknesses, Strengths, Threats and Opportunities.
Weaknesses and strengths
The weaknesses and strengths of an organization are its own characteristics that make it unique. Among these characteristics are so many tangible aspects, such as its financial capital, structural capital, equipment, human resources; as intangibles, including know-how, workers’ own values that manifest themselves as organizational values and vice versa, the ability to face difficult and stressful situations, among others.
These characteristics can be weaknesses when they are somehow not optimal or satisfactory to fulfill the mission of the organization. They can be strengths when they can help fulfill your mission.
The organization’s weaknesses and strengths help determine the organization’s position relative to the competition.
Threats and Opportunities
It comes from the environment, in them the external aspects of the organization that can favor or hinder the development of the organization are manifested.
Threats and opportunities are aspects of the environment that can slow down or favor organizational development, including: falling or rising product prices, armed conflicts, international politics, diseases, climatic factors, development of competition.
SWOT matrix construction
For the construction of the SWOT matrix, the participation of all the people of the organization is necessary with the knowledge that allows them to evaluate their current situation, internal and external; how the environment, the market and the competition move; what are its weaknesses and what are its strengths. This usually leads to the determination of the critical factors of the success of the organization.
The most used way is brainstorming or Brainstorming , through which the ideas that all participants have about the weaknesses, strengths, threats and opportunities that are observed in the internal and external environment and that favor or hinder compliance with the mission and vision of the organization and how they act on the organization from inside or outside it.
Once the fundamental ideas expressed by the participants have been selected and classified as weaknesses, strengths, threats and opportunities, these aspects are placed in the matrix to determine the impacts and collisions.
Determination of impacts and collisions
The SWOT matrix has four quadrants, in each quadrant a relationship is established between two of the ideas selected as important; later the organization establishes strategies that allow a better orientation of the organization in the environment. The strategies can be: defensive, offensive, survival and redirection.
Defensive strategies
They are the strategies that allow the organization to face environmental threats. In this case, the question that should usually be asked is: How to face the threats of the environment with the strengths that I have?
Offensive strategies
They are strategies that the organization must adopt to grow. It is the most advantageous position in the organization. The question would be in this case: How can the organization take advantage of the opportunities of the environment with the strengths it has?
Survival strategies
They are strategies that the organization adopts to survive. It is the position where no organization wants to be. The organization has weaknesses that the environment will reinforce with the threats it presents. It may be asked: How can the threats of the environment not deepen the weaknesses of the organization?
Reorientation strategies
The external market offers opportunities to the organization that it can take advantage of, but is not prepared for it and must establish a program of specific actions and reorient its previous strategies. The question could be: How to minimize weaknesses to take advantage of the opportunities offered by the environment?
