Start with a SWOT statement to build a business strategy.
Creating a SWOT statement---Strengths, Weaknesses, Opportunities, Threats---is one of the most effective ways to determine which type of strategy is most appropriate for your organization. A SWOT statement, sometimes called SWOT analysis, forces management to take an in-depth, honest look at how the organization is presently performing. As a result, the SWOT statement can be a realistic, personalized springboard for appropriately focused strategies in marketing, sales, expansion and other business areas.
Instructions
Determine Which Type of Strategy is Most Appropriate for Your Organization
1. Strengths: When determining the organization's strengths, list the attributes and offerings that differentiate the organization from its competitors. Ask questions such as: What is the strongest asset of the organization? Why do our long-term customers stay loyal to us? Which products capture the greatest market share, and why? Also, list any recognitions or awards by industry analysts and associations.
2. Weaknesses: Next, consider areas where the organization is weaker than its competitors. Do you have a shrinking customer base? Is your product or service losing market share in some geographic or demographic areas? Is your workforce lacking in expertise or number of resources? Also, list any financial problems, such as cash flow, that are perceived as weaknesses by industry analysts.
3. Opportunities:Here, investigate emerging industry trends that are likely to spur increased demand for your products or services. What are your customers asking for in terms of new products or product enhancements? Are there new generations of customers "coming of age" who can use your products or services? Also, consider any financial opportunities, such as a merger or acquisition that, would increase opportunities for business growth.
4. Threats: Last, list any obstacles to the success of your organization's proposed strategy, such as a weak economy, or emerging technology that makes your products seem obsolete. Also ask: What is the competition doing in terms of reaching customers that your organization is not? What are customers asking for that you currently cannot deliver? Are you planning a reduction in force or other employee-related changes that will generate bad publicity? Once again, consider financial-related threats, such as rising costs of materials.
