SWOT Analysis is a strategic planning method used to evaluate strengths (strengths) and weaknesses (weaknesses) of internal organization, as well as the Opportunities and Threats or Challenges on external organization or a project or a business venture. Strength is defined as the resources, skills, or other advantages relative to competitors and the market needs to be serviced companies. Weakness is defined as limitations in resources, skills, and capabilities that hinder the performance of the company. Opportunities are defined as significant favorable situation in the corporate environment. Threats are defined as significant unfavorable situation in the corporate environment. The four factors that form an acronym SWOT. SWOT analysis is done with the intention to identify the level of readiness of each function of the overall functions necessary to achieve the goals that have been set.
There are things that need to be considered in the SWOT analysis. SWOT analysis should be done to the overall factor in each function, both internal and external factors. SWOT analysis comparing the opportunities and threats of external factors with internal factors strengths and weaknesses. SWOT analysis quadrants can be illustrated in the figure below.
Quadrant SWOT Analysis
Quadrant 1: the situation is very favorable. The organization has the opportunity and strength so that it can take advantage of existing opportunities. Strategies that can be applied is to support the aggressive growth policy
Quadrant 2: Despite facing various threats, the company still has the power of the internal aspect. The strategy should be applied is to use long-term opportunities.
Quadrant 3: Company faced an enormous large market opportunities, but on the other hand, it faces several constraints / internal weaknesses. The focus of the strategy is to minimize the company's internal problems, so as to change the market opportunities better.
Quadrant 4: a very unfavorable situation, the company faces a variety of threats and internal weaknesses.
SWOT analysis consists of the analysis of internal factors (Internal Factor Analysis Summary / IFAS) and the analysis of external factors (External Factor Analysis Summary / EFAS). The conclusion can be done based on the scores obtained from the factors IFAS and EFAS. Business strategy matrix are as follows.
Criteria to make conclusion is as follows:
1. If the farm is located in the White Area (Strong Field-Chance), then the business has prospectively market opportunities and has the competence to do it.
2. If the farm is located in the Grey Area (Weak Field-Chance), then the business has a market opportunity prospectively however have the competence to do it.
3. If the farm is located in the Grey Area (Strong Field-Threatened), then the business is strong enough and has the competence to do it, but the market opportunity is very threatening.
4. If the farm is located in the Black Area (Weak Field-Threatened), then the business does not have the competence to do and do not have market opportunities.
Well, That the review of articles related to the SWOT analysis: Understanding, quadrant, and a SWOT matrix that we summarized from our personal literature. With this article, we hope that this article can be useful for us. Any other questions? Comment below. Thanks