Unveiling the Power of
SWOT Analysis in Business Planning and Development
SWOT
analysis is a system used in various aspects of the business. It means Strength, weaknesses, opportunities, and Threats. It is used to identify these aspects and allows an organization to identify and maximize on the strengths, help
the organization improve on the
identified weaknesses, allow to fully take advantage of the opportunities and
find effective ways to minimize the identified weaknesses. It is a system that
is very beneficial for the positive
development of an organization. The use of a SWOT analysis is also beneficial in the planning process of an
organization. This is because it leads to
effective decision making tailored towards successful growth and development. It provides fuller awareness of the
business situation which is important for
decision-making and strategic planning (Bush, 2016).
Building
a business that is successful requires great
levels of planning. Business planning
helps in defining the strategies of the business, the identification of goals and most
important it helps in the actualization of the vision of the business. SWOT analysis helps the process of
planning and makes it easier to reveal information about various circumstances
the business might find itself in and
offers solutions for those situations. The analysis provides insight into the current business situations and makes it easy to plan for the
future of the business. It helps answer
the questions of how the company is expected to grow. What factors will change
as result of the growth? And what aspects might hinder the achievement of
growth for the organization?
Opportunities and weaknesses, on the other hand,
offer insights to the question but based
on aspects of the future of the company (Gregory,
2017.
Supplementary
information is very crucial to any business plan. They provide finer details about the business that could be used to enhance the plan. Supplementary
information occurs in the form of supporting documents which are used to make
references to the information presented by the business plan. Such supporting
information is usually placed in the
appendix section of the plan. This
information helps support the central section and provides more imperative
information to the business owners. A good example is whereby instead of
disclosing the personal information of a manager in the business plan’s body, the writer of the business plan can refer this information to an attached resume of
the manager which ought to be in the appendix of the business plan. The appendix
also contains other details such as
advertising samples and organizational charts (Smalley,
2017).
In relation to the SWOT analysis, the
supplementary information found in the appendix of a business plan can be very important in providing a better overview
of the company. It provides conclusive information about the plan of the business by providing actual documents that can
be used to back the information presented by the plan. The weaknesses of supporting information found in the
appendix are that it holds many documents
needed to back the business plan. They range from tax returns, financial
statements, copies of resumes, market researchers,
advertisement samples and much other
documentation that can make the business plan
very cumbersome. They offer the opportunity
of a better overview of the position of the business,
and this is essential for planning.
Threats include creating confusion as a result of too much information
presented. The SWOT analysis is, therefore,
a very valuable tool in the development
of a business plan (Smalley, 2017).
Works
Cited
Bush, Thomas. How to Use SWOT in Business Plans.
2016. http://pestleanalysis.com/swot-business-plans/.
Gregory, Alyssa. How to Conduct a SWOT Analysis for Your
Small Business. 2017.
https://www.thebalance.com/swot-analysis-for-small-business-2951706.
Smalley, Carol Parenzan. Supporting Documents in Your
Business Plan. n.d.
https://www.allbusiness.com/supporting-documents-in-your-business-plan-2-4057779-1.html.
2017.
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