When processing SWOT analysis, macro-environmental analysis is performed, followed by microenvironment analysis. In conclusion, we will combine these 2 analyses.
1) Strengths/Weaknesses, Opportunities/Threats Assessments –We usually create tables that record the factors assessed and the status assessments (good, average, bad).
2)The severity/performance matrixis used to correlate strength/weakness performance with severity.–
· 1. Quadrant – the factor here is low performance, which needs to be strengthened because of its high importance.
· 2. Quadrant – the factor is most important for the prosperity of the company, so the entrepreneur must concentrate on maintaining its position.
· 3. Quadrant – a priority for the future of the company does not include a very important factor.
· 4. The quadrant factor is almost unimportant, but it is also an important strength. Therefore, it is necessary to evaluate the efforts of the enterprise to devote itself to support.
3) A matrix, that is, a matrix of opportunities and a matrix of threats, is also used to assess opportunities and threats.
· Opportunity Matrix – By identifying a company\’s marketing opportunities and evaluating the opportunities in the matrix, the best opportunities are located in the upper left quadrant and the least suitable opportunities are located in the lower right quadrant. The upper right quadrant represents an attractive but difficult-to-implement opportunity for the company. The opportunities in the lower left quadrant are not very attractive to the company and do not have much hope of success.
· Threat Assessment – You need to identify threats to your company and assess individual threats based on the probability of their occurrence and the severity of your company. The most prominent threat is in the upper left quadrant. The threat of the lower right quadrant is not too important for the company. The threats in the lower left and upper right quadrants do not directly threaten the business, but entrepreneurs should not underestimate them in view of other possible future developments.
The results of the SWOT analysis can then be displayed in an enumeration or in a table. The analysis is always compiled for a certain period of time.
· Show the interrelationship of various factors
*Explain how certain factors can be used
· Which of them should be eliminated
· What efforts should be made
· What actions should be taken, etc.