Understand SWOT analysis method
SWOT analysis is one of the commonly used methods in enterprise strategic decision-making and competitive intelligence analysis. Enterprise managers can use SWOT method to understand the current enterprise environment and future competition, and formulate a set of enterprise strategies that can adapt to the present and future.
The so-called SWOT analysis is also called situation analysis and the strategy of knowing ourselves and ourselves. It lists the main internal strengths, weaknesses, opportunities and threats closely related to the research object through investigation, and arranges them in matrix form according to the order of a paragraph, and then analyzes various factors by using the idea of system analysis, and draws a series of corresponding conclusions or countermeasures.
This research method was first put forward by a management professor at the University of San Francisco in the early 1980s, and its research basis was Porter model.
First, the main steps of SWOT analysis
1, analysis of environmental factors
Using various investigation and research methods, this paper analyzes various environmental factors of the company, namely external environmental factors and internal capacity factors. External environmental factors include opportunity factors and threat factors, that is, the external environment has a direct impact on the company's development of favorable and unfavorable factors. They belong to objective factors and generally belong to different categories such as economy, politics, society, population, products and services, technology, market and competition. Internal environmental factors, including advantages and disadvantages, are positive and negative factors in the company's own development. They are active factors and generally fall into different categories, such as management, organization and operation, finance, sales and human resources. When investigating and analyzing these factors, we should not only consider the history and present situation of the company, but also consider the future development of the company.
2. Build a SWOT matrix.
The SWOT matrix is constructed by sorting the factors obtained in the survey according to their priority or influence degree. In this process, those factors that have a direct, important, massive, urgent and lasting impact on the company's development are given priority, while those indirect, secondary, rare, urgent and short-lived factors are ranked behind.
Step 3 develop an action plan
After analyzing the environmental factors and constructing the SWOT matrix, the corresponding action plan can be made. The basic idea of making a plan is: give full play to advantages, overcome disadvantages, take advantage of opportunities and defuse threats; Consider the past, base on the present and focus on the future. Using the comprehensive analysis method of system analysis, the various environmental factors considered in the arrangement are matched and combined, and a series of optional countermeasures for the company's future development are obtained.
Second, the general method of SWOT analysis
SWOT analysis is an analysis of the strengths, weaknesses, opportunities and threats of enterprises. In the analysis, all internal factors (including the strengths and weaknesses of the company) should be concentrated together, and then these factors should be evaluated by external forces. These external forces include opportunities and threats, which are caused by competitive forces or trends in the enterprise environment. The balance of these factors determines what the company should do and when. SWOT analysis table can be completed according to the following steps:
1. Divide all identified advantages into two groups according to the following principles: See if they are related to potential opportunities or threats in the industry.
2. Divide all shortcomings into two groups in the same way. One group is related to opportunities, and the other group is related to threats.
3. Construct a table, each accounting for 1/4.
4. Match the company's strengths and weaknesses with opportunities or threats and put them in each grid. SWOT table shows the balance between internal strengths and weaknesses of the company and external opportunities and threats.
In the enterprise plan, be sure to write the following steps:
1, which may be threatened by competitors in some fields; Or there is an unfavorable trend in the changing environment. In these areas or trends, the company will have some disadvantages, so it is necessary to eliminate these disadvantages.
Taking advantage of those opportunities is the real advantage of the company.
3. There may be potential opportunities to improve the disadvantages in some areas.
4. Monitor the areas with advantages at present, so as not to be surprised when potential threats may appear.
Third, strategic decision-making choice
When planning the future, it is very important to determine whether the capabilities and resources of the enterprise represent the available advantages or disadvantages. The decisive factor of success refers to the ability and resources that a company must have to succeed. Put these together with the determinants of success, you can form a table, which in turn allows you to compare: comparing your abilities and resources with important people in the industry will help you determine the company's current strengths and weaknesses.
SWOT analysis provides an analytical framework, focusing on three elements: objectives; The external environment and internal conditions are a very simple and clear method. Through internal and external comparison, determine what kind of strategy the enterprise implements. ：
Growth strategy: both internal and external conditions are good, so we should develop vigorously.
Turning strategy: external conditions are good and internal problems exist, so we should seize the opportunity and adjust the direction.
Defensive strategy: the internal and external conditions are not satisfactory, and it is impossible to attack and reverse.
Diversified management strategy: abundant internal resources and external threats. In order to spread risks, we should implement a diversified strategy, that is, "don't put eggs in one basket."
Fourth, the application of SWOT
(A), enterprise external environment analysis
1, market analysis
(1) The position of existing products in the market;
(2) the change of products in the market, the trend and speed of change;
(3) the impact of product changes on enterprises in the market;
(4) the trend of consumer behavior;
(5) the fluctuation of product types in the market;
(6) What is the future space of new products in the market?
2. Competitive situation
(1) Who is our main competitor in the existing market and who is our main competitor in the foreseeable future market, and list these competitors one by one through market research;
(2) objectively enumerate the advantages and disadvantages of these competitors;
(3) According to the main competitors and their advantages, what strategies are adopted to shorten the distance or even lead?
3. Development of science and technology
(1) Whether it is foreseeable that the development of new technologies will affect the production mode or cost;
(2) Whether it is foreseeable that products produced by new technologies can replace existing products;
(3) With the development of science and technology, will consumers' consumption habits change accordingly?
(4) What is the R&D basis of your own enterprise?
4. Economic impact
(1) economic growth in the consumer market;
(2) Whether it is necessary for people's livelihood or general consumer goods, the impact on economic growth should be evaluated differently.
5. Changes in laws and regulations
(1) Whether the laws and regulations of enterprise activities are complete;
(2) Whether laws and regulations will change frequently, which will adversely affect the business operation.
6. Human resources
(1) Whether there will be a shortage of foreseeable human resources;
(2) Predict the possible changes of grass-roots human resources and middle and senior human resources.
7. Politics and society
(1) Whether the foreseeable politics is stable;
(2) the influence of political changes on society;
(3) The possible impact of social change on enterprises.
(B), enterprise internal environment analysis
The internal environment analysis mainly examines the advantages and disadvantages of the current market and the future market of the enterprise, so as to evaluate the conditions that the enterprise itself already has or should make up as soon as possible.
1. Corporate functions: R&D capability, human resources utilization and development capability, financial planning control capability, productivity and marketing capability.
2. Management functions: planning ability, organization ability, training ability, leadership ability and control ability.
(3), enterprise operation index analysis
1, profitability: return on investment, sales profit rate.
2. Stability: the proportion of self-owned capital, the proportion of liquidity and the proportion of capital turnover movement.
3. Activity capacity: total assets turnover, current assets turnover and inventory turnover.
4. Production capacity: activity production capacity and marketing capacity.
5. Growth ability: the growth ability of operating income; , product added value growth ability, enterprise per capita output value growth ability.
6. R&D ability: the ability to connect with the market, technical improvement and storage ability.
7. Social responsibility; The ability of enterprises to invest in public welfare undertakings.
How to form a strategy and how to actually implement it is the most important test and challenge for enterprise managers. SWOT plays an important role in decision-making, and the specific operation must depend on the different situations of enterprises. But any management theory should not be viewed too deeply, and it can be tried to be applied on the basis of understanding.
I don't know. Is this accurate enough?