Full swot analysis of the enterprise. SWOT analysis as a research method

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Importance thorough analysis strategies

When doing business, people face all sorts of difficulties and surprises. And such activities also consist of processes of various levels of complexity. This means that in business you need to act based on one or another long-term plan. We often use the word “strategy” in our lives. What does it mean? This word usually means planning a complex activity over a long period of time. It must take into account both various complex processes, as well as possible surprises and difficulties that may arise both in the business itself and in the outside world that influences it. This is a very difficult task. It is difficult to even understand how to start this business, where, in fact, to start. We use such a wonderful tool as SWOT analysis. Examples of its application can be very diverse.

Scheme carrying out analysis

Let's show what a SWOT analysis looks like using an example of an enterprise. The analysis carried out using this methodology will create the basis for the strategy of further activities. So, let's take a closer look at the technique. The name itself represents the first letters of four words in English. These words: opportunities (opportunities), threats (threats), strengths (strengths) and weaknesses (weaknesses) correspond to four main sections. Where can this type of analysis be applied? Obviously, to the study of most of the various complex processes in the economy and in society. This can be the study of not only a separate business, but also the work of an entire economic sector, for example.

SWOT analysis as an example

Let's consider how to apply this approach to analyzing the activities of an individual business enterprise. When we conduct a SWOT analysis using the example of a company, the first stage consists of a very careful study of all possible features of the company’s work. At the second stage, you also need to carefully study the external environment of the business. These two initial stages of analysis lay the foundation for further actions. Here it is necessary to consider many aspects - both those characterizing the company itself and those describing in detail the external environment. Now all the information received needs to be correctly classified, distributed into the appropriate sections. Further, after careful preparation, we can indicate the strengths of our business, weaknesses that still need to be worked on, and

work. The capabilities that make sense to be developed in the future also become clearer. And all sorts of risks and threats that may have to be faced in the future become clearly formulated. Next comes the turn of processing the results obtained. Once the data was collected, analyzed and classified, we received an information basis for strategic business planning. Here it should be noted that, in fact, the SWOT analysis itself using the example of an enterprise ends at this point, then you need to draw conclusions and base your further work on them. It remains to consider exactly how we can make the most of our strengths, how to strengthen our weak positions, with the help of which we can reduce the risk from possible threats. And carefully consider the opportunities that open up. SWOT analysis of a trading enterprise follows the same pattern.

Detailed example SWOT-analysis

Now suppose that you want to carry out such an analysis in practice and use its results for your activities. For example, let's use a fictitious small business company. So, you have decided to conduct a SWOT analysis. First you need to invite interested people and arrange something like a brainstorming session to generate the necessary ideas. As we remember, we need to formulate ideas that fall into four categories. The first two categories (strengths and weaknesses of the enterprise) reflect the internal activities of the company, the other two (threats to the organization and its opportunities) reflect environmental characteristics not controlled by the enterprise. In the process of generating ideas, you need to limit criticism to spur the creative process. You also need to remember that it is not such a rare situation when some factor is both a strength and a weakness (for example, an increase in the scale of an enterprise strengthens the business itself, but at the same time it is a factor that complicates the process of managing the company). Thus, creating a table from these sections, done in the most complete manner possible, is the goal of the first stage of analysis. Let's illustrate this.

Strengths of the company:

1. Good reputation.
2. Quality product.
3. Professional team.
4. Large customer database.

Weaknesses of the company:

1. There are not enough employees.
2. Unreliable suppliers.
3. The advertising budget is too small.
4. It's time to update the equipment.
5. There is no business plan, strategic goals are not defined.

Opportunities available in the outside world:

1. The competitors are not very strong.
2. Opportunity to occupy new market niches.
3. Opportunity to improve our product.
4. Opportunity to receive additional investment.
5. Opportunity to expand our sales to other territories.

Threats from the outside world:

1. New competitors may appear.
2. Customer preferences may change after a few years.
3. Changes in the economy.
4. Key employees may quit. The result of the first stage of SWOT analysis will look something like this (but in much more detail). What to do next with this list? Based on the points marked as strengths, the main priorities in the development of the enterprise are determined. They need to be strengthened in every possible way. Capabilities need to be developed on a priority basis. In relation to weaknesses, you need to take measures to correct them, in relation to threats, you need to be ready to repel them. Based on the above, a strategic plan for further development is drawn up. You just need to remember that weaknesses and threats can have a beneficial side - for example, changes in the economy can change the rules of the market, which can provide new opportunities for the enterprise. This must be taken into account when drawing up this plan.

Possible area applications such analysis

Using this analysis, you can evaluate the performance of a business. A business can be called ideal if it has distinct strengths and real favorable opportunities for development, while threats remain insignificant. If great opportunities coexist with high risks, then this business can rightfully be called risky. A mature business is characterized by the fact that both opportunities and threats are present at the same time, but the latter are not very pronounced. SWOT analysis using the example of a company is a powerful tool for creating a business strategy. Its capabilities can also be effectively used with great benefit in a wide variety of areas.

Life forces us to make decisions every day. And every decision we make, one way or another, affects our future. Our fate for years and even decades depends on some decisions. To make any important decision, you need a thorough analysis of what is happening, this is necessary both in business and in everyday life. Qualitative analysis is a very difficult matter. And despite the fact that absolutely every person needs to be able to do it, this management function is not taught in school. Today we will talk about one of the most common methods of analysis - the SWOT method.

What is SWOT analysis

SWOT analysis is a method of primary assessment of the current situation based on considering it from four sides:

• Strengths - strengths;
• Weaknesses - weaknesses;
• Opportunities - opportunities;
• Threats – threats;

Strengths and weaknesses are your internal environment, what you already have at the current moment in time. Opportunities and threats are environmental factors, they may or may not happen, it also depends on your actions and decisions.

The acronym SWOT was first used at Harvard in 1963 at a conference on business policy by Professor Kenneth Andrews. In 1965, SWOT analysis was proposed to develop a company's behavior strategy.

SWOT analysis helps to create a structured description of a specific situation, based on this description, conclusions can be drawn. This allows you to make correct and informed decisions. SWOT analysis plays a significant role in business and should be mastered by everyone involved in personnel management and marketing.

Rules for conducting SWOT analysis

Before you begin drawing up a SWOT analysis, you need to understand a number of rules.

1. Need to choose the most specific area of ​​research. If you choose an area that is too broad, the conclusions will be unspecific and less applicable.
2. Clear separation of elementsSWOT. There is no need to confuse strengths and opportunities. Strengths and weaknesses are the internal characteristics of an organization that are within its control. Opportunities and threats are related to the external environment and are not directly subject to the influence of the organization; the organization can only change its approach and adapt to them.
3. Avoid subjectivity. It would be naive to rely on your opinion if the market does not agree with it. You may think your product is unique, but it's worth asking consumers about this first. Without them, your personal opinion has no meaning.
4. Try use the opinions of as many people as possible. The larger the sample, the more accurate the research. Remember about?
5. The most specific and precise formulations. I often ask my subordinates: “What should you do to earn more?” They almost always tell me that I need to work harder. This is not a specific formulation; it is not clear what specific actions a person should perform at what time.

Using these simple rules, you can proceed to compiling a SWOT matrix.

SWOT matrix

SWOT analysis is usually used by drawing a table, it is often called a SWOT matrix. This method of use does not depend on the global nature of the problem being solved. It doesn’t matter whether you’re deciding who to spend the weekend with or what business to invest your millions in, the essence and appearance of a SWOT analysis will remain the same. The SWOT matrix looks something like this:

The first line and first column are indicated simply for ease of understanding; they are not necessary to draw if you understand the SWOT analysis method well.

How to use SWOT analysis

So, you are faced with a certain task and you need to understand how to solve it. First of all, you need to draw a SWOT matrix. You can do this by dividing a sheet of paper into four parts. In each part you need to write as much available information as possible. It is advisable to write the more significant factors first, then move on to the less significant ones.

We analyze strengths and weaknesses

It is not surprising, but it is with the description of strengths that the most problems arise for people who take up SWOT analysis for the first time. In general, you can ask your employees, friends and acquaintances for help in assessing, but it is better to learn how to analyze yourself. Strengths and weaknesses are assessed using the same parameters.

In business, strengths are assessed primarily based on the following parameters:

• Management and human resources in general. First of all, the competence and experience of the staff;
• Having a clear system. Business processes and employee understanding of what to do;
• Finance and access to money;
• Clearly. This is a very important success factor; the lack of a sales department is a serious obstacle and a sink for other resources;
• Reasonable marketing policy;
• Availability of production costs.

When conducting a SWOT analysis of your personality, you can rely on the following criteria:

• Education and knowledge;
• Experience and your skills;
• Social connections, useful contacts and other opportunities to use administrative resources;
• Recognition and authority;
• Availability of material resources;

When analyzing your strengths, you should focus on what you like to do and what you are good at. As a rule, what we don’t like turns out worse for us.

Analysis of opportunities and threats

Opportunities and threats are created by changes in the environment and those changes that you can make personally. It is worth noting that to analyze the external situation on the market, and even more so to predict the future market, you need to have serious qualifications. It is very difficult to predict what will happen and it is worth relying primarily on current facts and trends. At the same time, when making long-term planning, it is necessary to take into account the most pessimistic scenario for the development of the situation.

Opportunities and threats in business are primarily assessed according to the following parameters:

1. Market trends. Increase or decrease in demand.
2. Economic situation in the country. In years of economic growth, business, other things being equal, will grow in proportion to the growth of the economy, and vice versa.
3. Competition, the absence of competitors today does not guarantee their absence tomorrow. The arrival of a major player in the market can turn the industry upside down.
4. Infrastructure changes. Major changes to infrastructure can result in both gains and losses.
5. Legislation and political trends. Probably, in 2003, no one imagined that within 5 years all casinos would close.
6. Technological revolutions. Progress inevitably destroys entire industries while creating new ones.

Every field of business has its own experts and professionals; to compile a high-quality SWOT matrix, you can turn to them for advice and expert opinion.

SWOT analysis methodology

So, we have a completed SWOT matrix that contains: strengths and weaknesses, as well as opportunities and threats. Based on this matrix, you need to work according to it. To do this, perform the following steps:

1. It is necessary to rank all factors according to the degree of influence;
2. All far-fetched and unimportant factors must be excluded;
3. We analyze how your strengths can help you avoid threats and achieve opportunities;
4. Let's see what impact your weaknesses can have on opportunities and threats;
5. How strengths can help improve weaknesses;
6. How can we reduce threats;

Based on the work done, you draw up the main vectors of development. SWOT analysis is primarily a tool for descriptive assessment of the situation. It does not analyze large amounts of analytics and does not compare indicators over past years. SWOT does not measure quantitatively the parameters. And that is why the SWOT method will always be a rather subjective analysis tool.

Application of SWOT analysis

The simplicity of SWOT analysis makes this tool very versatile; as we wrote above, it can be used both in life and in business. SWOT analysis is used both separately and in combination with other analysis and planning tools. SWOT analysis is most widely used in management, primarily for strategic planning of an organization's activities.

SWOT self-analysis

Separately, I would like to talk about the use of the SWOT analysis method to determine priorities in personal development. You can use this tool to determine goals both at work, for example, what area of ​​activity you should pursue, and in personal relationships.

I strongly recommend that middle and senior managers ask their subordinates to do a personal SWOT analysis at least once a year. It is also an excellent tool for determining management abilities when hiring a new employee. I first read this idea in Igor Mann’s book Number 1. Mann recommends giving SWOT to everyone who came for an interview.

Have you ever wondered what a good military leader does before a battle? He studies the field of the upcoming battle, looking for all the advantageous hills and dangerous swampy places, assesses his own strength and the strength of the enemy. If he doesn't do this, he will doom his army to defeat.

The same principles apply in business. Business is an endless series of small and large battles. If you don't assess your business's strengths, weaknesses, and market opportunities and threats before battle (those uneven terrain that become so important in the heat of battle), your chances of success will be greatly diminished.

In order to get a clear assessment of your company's strengths and market situation, there is a SWOT analysis.

SWOT-analysis is the determination of the strengths and weaknesses of your enterprise, as well as the opportunities and threats emanating from its immediate environment (external environment).

• Strengths (S trengths) advantages of your organization;
• Weaknesses (W eaknesses) shortcomings of your organization;
• Possibilities (O pportunities) external environmental factors, the use of which will create advantages for your organization in the market;
• Threats (T hreats) factors that could potentially worsen your organization's position in the market.

Using a SWOT analysis will allow you to systematize all available information and, seeing a clear picture of the “battlefield,” make informed decisions regarding the development of your business.

SWOT analysis in the marketing plan of your enterprise

SWOT analysis is an intermediate link between formulating the mission of your enterprise and defining its goals and objectives. Everything happens in this sequence (see Figure 1):

1. You have determined the main direction of development of your enterprise (its mission)
2. Then you weigh your strengths and evaluate the market situation to understand whether you can move in the indicated direction and how best to do this (SWOT analysis);
3. After this, you set goals for your enterprise, taking into account its real capabilities (defining the strategic goals of your enterprise, which will be discussed in one of the following articles).

So, after conducting a SWOT analysis, you will have a clearer idea of ​​the advantages and disadvantages of your enterprise, as well as the market situation. This will allow you to choose the optimal path of development, avoid dangers and make the most efficient use of the resources at your disposal, while simultaneously taking advantage of the opportunities provided by the market.

Even if you are sure that you are already well aware of everything, we still advise you to conduct a SWOT analysis, since in this case it will help structure the existing information about the enterprise and the market and take a fresh look at the current situation and emerging prospects.

How to Conduct a SWOT Analysis

In general, conducting a SWOT analysis comes down to filling out the matrix shown in Figure 2, the so-called. "SWOT analysis matrices". It is necessary to enter the strengths and weaknesses of your enterprise, as well as market opportunities and threats, into the appropriate cells of the matrix.

Strengths your business - something it excels at or something that gives you additional opportunities. Strength may lie in your experience, access to unique resources, advanced technology and modern equipment, highly qualified personnel, high quality of your products, recognition of your brand, etc.

Weaknesses of your company are the absence of something important for the functioning of the company or something that you are not yet successful in comparison with other companies and puts you in an unfavorable position. Examples of weaknesses include a too narrow range of products, a poor reputation of the company in the market, lack of financing, low level of service, etc.

Market opportunities are favorable circumstances that your business can exploit to gain an advantage. Examples of market opportunities include the deterioration of the positions of your competitors, a sharp increase in demand, the emergence of new technologies for the production of your products, an increase in the level of income of the population, etc. It should be noted that opportunities in terms of SWOT analysis are not all opportunities that exist in the market, but only those that your business can exploit.

Market threats are events that, if they occur, could have an adverse impact on your business. Examples of market threats: new competitors entering the market, rising taxes, changing consumer tastes, declining birth rates, etc.

Note: the same factor can be both a threat and an opportunity for different enterprises. For example, for a store selling expensive products, an increase in household income may be an opportunity, as it will lead to an increase in the number of customers. At the same time, for a discount store, the same factor can become a threat, since its customers, with rising salaries, may move to competitors offering a higher level of service.

So, we have determined what the result of a SWOT analysis should be. Now let's talk about how to achieve this result.

From words to action

Step 1. Determining the strengths and weaknesses of your enterprise

The first step of a SWOT analysis is to assess your own strengths. The first step will allow you to determine what the strengths and weaknesses of your business are.

In order to determine the strengths and weaknesses of your enterprise, you need to:

1. Make a list of parameters by which you will evaluate your enterprise;
2. For each parameter, determine what is the strength of your enterprise and what is the weakness;
3. From the entire list, select the most important strengths and weaknesses of your enterprise and enter them into the SWOT analysis matrix (Figure 2).

Let's illustrate this technique with an example.

So, you have already done a significant amount of work on the SWOT analysis of your company. Let's move on to the second step - identifying opportunities and threats.

Step 2: Identify Market Opportunities and Threats

The second step of SWOT analysis is a kind of “terrain reconnaissance” – market assessment. This stage will allow you to assess the situation outside your enterprise and understand what opportunities you have, as well as what threats you should be wary of (and, accordingly, prepare for them in advance).

The method for determining market opportunities and threats is almost identical to the method for determining the strengths and weaknesses of your enterprise:

Let's move on to an example.

You can use the following list of parameters as a basis for assessing market opportunities and threats:

1. Demand factors (here it is advisable to take into account the market capacity, the rate of its growth or contraction, the structure of demand for the products of your enterprise, etc.)
2. Competition factors (you should take into account the number of your main competitors, the presence of substitute products on the market, the height of barriers to entry and exit from the market, the distribution of market shares between the main market participants, etc.)
3. Sales factors (it is necessary to pay attention to the number of intermediaries, the presence of distribution networks, conditions of supply of materials and components, etc.)
4. Economic factors (the exchange rate of the ruble (dollar, euro), the level of inflation, changes in the level of income of the population, state tax policy, etc. are taken into account)
5. Political and legal factors (the level of political stability in the country, the level of legal literacy of the population, the level of law-abidingness, the level of government corruption, etc. are assessed)
6. Scientific and technical factors (usually the level of development of science, the degree of introduction of innovations (new goods, technologies) into industrial production, the level of government support for the development of science, etc. are taken into account)
7. Socio-demographic factors (you should take into account the size and age-sex structure of the population of the region in which your enterprise operates, birth and death rates, employment levels, etc.)
8. Socio-cultural factors (usually the traditions and value system of society, the existing culture of consumption of goods and services, existing stereotypes of people’s behavior, etc. are taken into account)
9. Natural and environmental factors (the climate zone in which your enterprise operates, the state of the environment, public attitude towards environmental protection, etc. are taken into account)
10. And finally international factors(among them, the level of stability in the world, the presence of local conflicts, etc. are taken into account)

Next, as in the first case, you fill out the table (Table 2): in the first column you write down the assessment parameter, and in the second and third columns the existing opportunities and threats associated with this parameter. The examples in the table will help you understand the list of opportunities and threats for your enterprise.

Table 2. Identification of market opportunities and threats

Evaluation options	Possibilities	Threats
1. Competition	Barriers to entry into the market have increased: from this year it is necessary to obtain a license to engage in this type of activity	A large foreign competitor is expected to enter the market this year
2. Sales	A new retail chain has appeared on the market, which is currently selecting suppliers	Starting this year, our largest wholesale buyer determines suppliers based on the results of the tender
3. etc.

After filling out Table 2, as in the first case, you need to select the most important ones from the entire list of opportunities and threats. To do this, you need to evaluate each opportunity (or threat) on two parameters by asking yourself two questions: “How likely is it that this will happen?” and “How much will this affect my business?” Select events that are likely to happen and will have a significant impact on your business. Enter these 5-10 opportunities and approximately the same number of threats into the appropriate cells of the SWOT analysis matrix (Figure 2).

So, the SWOT analysis matrix is ​​completed, and you see in front of you a complete list of the main strengths and weaknesses of your enterprise, as well as the prospects opening up for your business and the dangers that threaten it. However, that's not all. Now you need to take the final step and compare your business's existing strengths and weaknesses with market opportunities and threats.

Step 3. Compare your business's strengths and weaknesses with market opportunities and threats

Comparing strengths and weaknesses with market opportunities and threats will allow you to answer the following questions regarding the further development of your business:

1. How can I take advantage of emerging opportunities by leveraging the company's strengths?
2. What weaknesses of the company can prevent me from doing this?
3. What strengths can be used to neutralize existing threats?
4. What threats, exacerbated by enterprise weaknesses, do I need to be most concerned about?

To compare the capabilities of your enterprise with market conditions, a slightly modified SWOT analysis matrix is ​​used (Table 3).

Table 3. SWOT analysis matrix

	POSSIBILITIES 1. Emergence of a new retail network 2. etc.	THREATS 1. Emergence of a major competitor 2. etc.
STRENGTHS 1. High quality products 2. 3. etc.	1. How to take advantage of opportunities Try to become one of the suppliers of the new network, focusing on the quality of our products	2. How you can reduce threats To keep our customers from switching to a competitor by informing them about the high quality of our products
WEAK SIDES 1.High production cost 2. 3. etc.	3. What can prevent you from taking advantage of opportunities? The new network may refuse to purchase our products, since our wholesale prices are higher than those of competitors	4. The biggest dangers for the company An emerging competitor can offer the market products similar to ours at lower prices

Once you've filled out this matrix (as we hope the examples we've provided will help you), you'll find that:

1. determined main directions of development of your enterprise(cell 1, showing how you can take advantage of emerging opportunities);
2. formulated the main problems of your enterprise that need to be resolved as soon as possible for the successful development of your business (the remaining cells of table 3).

Now you are ready to set goals and objectives for your enterprise. However, we will talk about this in one of the following articles, and now we will dwell on a question that is probably of interest to you:

Where can I get information to conduct a SWOT analysis?

In fact, most of the information you need to conduct a SWOT analysis is already at your disposal. Basically, of course, this is data about the strengths and weaknesses of your enterprise. All you need to do is collect all these disparate facts (taking reports from accounting, production and sales departments, talking with your employees who have the necessary information) and organize them. It will be better if you can involve several key employees of your enterprise in collecting and analyzing this information, since it is easy to miss any important detail alone.

Of course, information about the market (opportunities and threats) is somewhat more difficult to obtain. But here the situation is not hopeless. Here are some sources you can get useful information from:

1. results of marketing research, reviews of your market, which are sometimes published in some newspapers (for example, Delovoy Peterburg, Vedomosti, etc.) and magazines (for example, Practical Marketing, Exclusive Marketing, etc.);
2. reports and collections of the State Statistics Committee and St. Petersburg Statistics Committee (information on population size, mortality and birth rates, age and sex structure of the population and other useful data);
3. Finally, you can get all the necessary information by ordering marketing research from a specialized company.

We will tell you more about the sources and methods of collecting information that you may need to conduct a SWOT analysis in the following articles. And now let's summarize all of the above.

Summary

SWOT analysis this is a determination of the strengths and weaknesses of your enterprise, as well as the opportunities and threats emanating from its immediate environment (external environment).

A SWOT analysis will allow you to choose the optimal path for developing your business, avoid dangers and make the most of the resources at your disposal.

The procedure for conducting a SWOT analysis in general comes down to filling out a matrix that reflects and then compares the strengths and weaknesses of your enterprise and the opportunities and threats of the market. This comparison allows you to determine what steps can be taken to develop your business, as well as what problems you urgently need to solve.

The following materials were used in preparing the article:

Zavgorodnyaya A.V., Yampolskaya D.O. Marketing planning. SPb: Peter. 2002. 352 p.

Kotler F. Marketing management. St. Petersburg, Peter Kom, 1998. 896 p.

Solovyova D.V. Electronic course of lectures on modeling. 1999.