Importance of SWOT analysis
SWOT analysis refers to the audit of both external and internal factors that affect a given organization. This audit is centered on identifying the strengths, weaknesses, opportunities, and threats that are likely to impact an organization. It is important to conduct a SWOT analysis periodically because the information derived from the analysis is vital for the continuity of any particular organizational goal. In this sense, the analysis acts as a reference tool in terms of dictating the viable options that would ensure the future of an organization (Bryson, 2011).
Further, the analysis helps organizations to gauge how their competitors and consumers view their products and the company as a whole (Roth & Washburn, 1999). This way, the organization will be in a position to rate its competitive performance strategy and at the same time review the factors that have contributed to its success or failure. Through the analysis, the organization can be able to continuously monitor specific aspects of the environment as depicted by the results of a SWOT analysis (Kumar, 2003).
How the results of the SWOT analysis might impact strategy development
The most important aspect in assimilating the result of a SWOT analysis is coming up with a strategic matrix that matches the identified internal and external factors. With reference to my final project on the Department of Homeland Security, the SWOT analysis will come in handy to form the basis of developing a strategic development plan (Lee et al., 2000).
For example, to fine-tune the strategy plan of ensuring that the services of the Department are accessible to all, it will be vital to look at such a limitation as a weakness and strive to match it with a given opportunity such as the high demand for Homeland Security services.
Further, Formisano (2004) asserts that it is important to take advantage of an organization’s strength to counter external factors such as threats and maximize on exploring the opportunities. In this case, strengths like offering quality services to individuals who seek Department of Homeland Security services can act as an advantage in overshadowing the threats and exploring areas that have not been ventured into, leading to more opportunities.
References
Bryson, J. M. (2011). Strategic Planning for Public and Nonprofit Organizations: A guide to strengthening and sustaining organizational achievement. (4th ed.). New York: Wiley
Formisano, A. A. (2004). Manager’s guide to strategy. New York: McGraw-Hill.
Kumar, A. S. (2003). Entrepreneurship Development. New Delhi: New Age International.
Lee, S. F., Lo, K. K., Leung, R. F., & Ko, A. S. O. (2000). Strategy formulation framework for vocational education: Integrating SWOT analysis, balanced scorecard, QFD methodology and MBNQA education criteria. Managerial Auditing Journal, 15(8), 407–423.
Roth, B. N., & Washburn, S. A. (1999). Developing strategy. Journal of Management Consulting, 10(3), 50–54.