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SWOT analysis is a type of survey that helps you to compare internal factors against external factors in your business; its essential in strategy development. It stands for Strengths, Weaknesses, Opportunities, and Threats. As an entrepreneur, a SWOT analysis will help you make smart and informed business decisions; you will understand the position of your firm in the market better. Through this analysis, you will know where your company is and where you need to improve business success. It allows you to develop your enterprise strategically, by allocating resources in the required sectors other than wasting efforts, trying to expand your firm in a market that doesn't align with your business. It gives you an unbiased overview of all undertakings in your firm, which enables your brain to consider equally all factors that could affect your operations. The analysis illuminates details that force you to come up with actionable plans. For instance, if you want to expand your business in a new location, you can run SWOT analysis to determine if you are in an excellent position to do so and identify various external factors that could limit you.
SWOT analysis is a fundamental part of every business’s strategic planning process as it provides an accurate overview of your firm’s current and future situation. Currently, it is not only used by firms to evaluate performance but also used by students to plan their future in regards to careers. It is vital in strategic business planning in the following ways;• It helps in setting objectives necessary for strategic planning.• It is an excellent source of information necessary for planning.• It builds on organization strengths and reverses its weaknesses.• It helps identify the competence level of a firm.• It maximizes in response to opportunities.• It helps in understanding past and present practices and to plan for the future.
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