Why swot and pest analysis

So how do you go about conducting research? These analyses are meant to provide you with an objective look and the information you need to make informed, mature decisions. A SWOT analysis stands for:. Start a deep-dive into your own company with the SWOT analysis template shown above.

The first two letters of the acronym SWOT—strengths and weaknesses—ask you to look at your business's own unique postures. Strengths, or the key differentiators between your company and the competition, could include:. A full inventory of your internal strengths and weaknesses will show you exactly where to improve and help you understand upcoming challenges. The next two acronyms—opportunities and threats—refer to factors outside your organization that influence its success.

These factors could include:. You may need to revisit your strengths and weaknesses after considering them in the context of the external factors influencing your organization. On our SWOT analysis template, you'd want to mark that under "Threats" and consider how to adapt accordingly. This type of analysis is best performed when your business is new, is having difficult meeting performance standards without a clear understanding of why, or is otherwise gearing up for a significant change, such as:.

Taking the time to do a SWOT analysis can help you identify and then improve your own internal practices and processes before attempting a new venture. Use our free template to conduct your own SWOT analysis.

Or use our SWOT analysis generator. Each area in the SWOT matrix is examined as part of the planning process to determine whether there are any obvious advantages or disadvantages, any opportunities that may be exploited and any risks that may need to be considered. This involves using the resources you have available to research the elements that make up the SWOT. Some students ask where to get a SWOT from and, while there are sources that may be able to provide an existing analysis, it is also good to carry out your own.

These macro-environmental factors are strategically analysed by companies in order to understand the market in which it operates. Threats: Assess the outside conditions that may be obstacles and have a negative impact on business. Political: Determine how the current direction of the political parties may influence business development and growth. Economic: Examine the effects of interest rates, taxes, the stock market, consumer confidence and other economic metrics. Social: Acknowledge the changes in lifestyles, advertising targets, ethics, demographics and culture.

Technology: Evaluate your company's current technology. Is it up-to-date? Legal: Anticipate any new laws and regulations that can impact your operations. Environment: Identify the environmental factors that should be considered. Provide a simple structure to conduct the analysis.