We have already talked about other articles here on Blog about the importance of SWOT Analysis for companies. If you are not already familiar with it, here is a brief summary: it is a management tool used several decades ago to analyze the internal and external environments of a business.
However, although used for years, many managers still find it difficult to raise the company's main Strengths and Weaknesses in the internal environment analysis stage.
Thinking of solving this difficulty, I decided to write this article with some methods and tips that will help you to better understand your own business and discover its main strengths and weaknesses, giving a North in time to do your SWOT Analysis.
Methods to identify
List by area
Starting from the simplest, the first method is simply to make a list of the main points that can be considered as strengths and weaknesses in each area of the company. For this you should go from area to area and check some things like:
1) Are there different or innovative processes that bring some kind of competitive advantage to the business?
2) Is there any technical fault or limitation in any of the areas?
3) Does any area do better or worse than competitors?
4) What makes a unique area in my business?
These are some simple questions that, when being answered with visits and looking at business areas, the manager can already visualize some items that can be considered weaknesses and strengths of the organization. The important thing here is to start having inputs that generate a reflection of the strengths and weaknesses in the company, so feel free to add more questions and questions.
O Business Diagnostics is an essential tool for the manager to discover the degree of maturity of the company and the main strengths and weaknesses of a business. The Business Diagnosis is a company evaluation methodology that will help you to analyze the problems and the different solutions in each area of the business.
Composed of a series of questions and criteria to be answered and evaluated, the Diagnosis analyzes the degree of management maturity of a business based on good market management practices. With it you can clearly see which areas are the weakest and strongest in the company.
See the image below, for example, the score of each criterion based on the answers of a Business Diagnosis.
A well-done Business Diagnosis helps to define which areas are most deficient in terms of management maturity in the company and, besides serving as a tool to propose improvements, it also serves as a tool to assist in setting up your SWOT Analysis, since you will clearly know which areas of the company are strongest and weakest.
Here in LUZ we have a Business Diagnostics Worksheet, with all the questions and criteria already set, so that you simply apply the method in your company and already start to reap the results.
After doing the list and the Diagnosis of the company, it is time to gather the team of managers responsible for the business strategy and begin to analyze the results of these efforts of survey of input. Thus, with the team gathered in a brainstorming, it is possible to analyze item by item and to consolidate the final list of strengths and weaknesses of the company, based on those elements previously raised.
In addition to consolidating the final list, a good practice when defining your strengths and weaknesses in completing your SWOT analysis is to define degrees of importance for each of the company's strengths and weaknesses, taking into consideration how much they would have to impact on future strategies.
I have also separated two minor tips that can help you identify the strengths and weaknesses of your business. Are they:
- Look at some indicators of your company and see if they can mean strength or weakness. For example: If you have a high cash availability, a possible force might be "Have cash to make new investments". Likewise, if your profitability is low this may mean that you have weaknesses such as "high production costs".
- You can involve the entire team of your company to raise possible strengths and weaknesses that they see in the business. Asking the company's employees what they see as strengths and weaknesses can lead to new insights when it comes to preparing their SWOT Matrix.
If you need a tool to assist in the process of creating your SWOT Matrix, check out our SWOT Analysis Worksheet, clicking here!