SWOT Analysis

In the occasion where it plans enterprise strategically with the principal analytical method which is used, the opportunity which lies hidden in external environment of organization (O = opportunities), threat (T = threats) after examining & considering, the strength which that organization has (S = strengths) with limpness (W = weaknesses) you verify & appraise. Other than management strategic decision it is utilized, inwide field such asmarketing plan and balanced scorecard and the management system construction of ISO.

The opportunity and threat enumerate, when the external environmental - - namely organization achieves purpose, the macro primary factor which has the possibility of receiving influence (political economy and social situation) with micro primary factor such as technical development and mandatory control (market scale growth characteristic, sense of value of the customer, tendency of price, competitive other companies and the cooperative company etc.) deduce by the fact that you divide into the promotion primary factor and the drag.

For example as for strength and limpness, the materiality intangible management resource - - of the respective company commodity power, cost constitution, sale power and technical power, reputation and the brand and financial affairs, it examines the talent and decision making power etc., whether, those are superior, or are inferior competitive other companies compared to classifying it keeps leading.

How many it picks up some kind of item at the time of SWOT analyzing, it is not the case that it is especially standardized standard. Many check list in order to make quantitative appraisal possible is proposed, but when those are used, it is necessary to examine whether or not it coincides to purpose.

In addition, the opportunity/threat, strength/limpness they are relative ones, strength changes to limpness with the change of external environment, those which are the opportunity with the interpretation of the analyst become threat, with can be what is said. This way as for SWOT analysis because the part which is entrusted to subjective discretion is large, it is unsuitable to the details precise analysis such as estimate of demand and profit ratio. The result compared to, you can call the strategic plan technique which has meaning in process.

As for SWOT analysis, Henry of the management scholar (Henry Mintzberg) with inthe strategic managementclassification you say, with the basic tool of the "design school", ability and external environment inside enterprise the strategy which conforms (plan) it is something in order to draw up. For a long time there is a standpoint that the strategy (plan) with it is inside circumstance and to agree external environment, but this that it becomes clear as a strategic decision process, it was written Kenneth R and of the general management group of the Harvard business college loose (Kenneth Andrews by) and others "Business Policy: It assumes that Text and Cases "(1965) from is. The method same book popular becoming the thing as a textbook of the business college, the opportunity threat which is shown here (at the beginning being expressed "risk" to analyze enterprise, deciding the long-range planning of the strategic = inside from) strength limpness spread widely in the United States.

On the one hand, the research project that was done it makes, whether the Stanford Research Institute (SRI) with in the sixties (Albert Humphrey) and others long-range planning of enterprise why fails clear. The method, "SOFT analysis" was devised as the mechanism which among these states clearly suitability such as enterprise activity. Namely, in present condition, the appraisal that satisfaction (S = satisfactory), in future, it is good, the appraisal that the opportunity (O = opportunity), in present condition, it is good, the appraisal that the failure (F = fault), in future, it is bad, the appraisal that threat (T = threat) amount it is bad, it is something which is similar. This F was modified by W in 1964, you say that the word, "SWOT analysis" was born.

As for SWOT analysis, in market survey and social investigation and the like emphasizing that external environmental analysis is done first, with "OTSW analysis" andsix sigma and the like C (challenge) changing W, there are times when it is called "SCOT analysis". In addition, the TOWS analysis which is expansion of SWOTanalysis(SWOT analysis is included), is called "SWOT analysis" often.