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How SWOT Analysis Can Help Your Business Grow a Lot

How SWOT Analysis Can Help Your Business Grow a Lot

There are so many options when it comes to assessing the performance of your business that it can be hard to know which to choose. SWOT analysis is a popular tool that helps you to assess the strengths and weaknesses of your organisation, and identify the threats and opportunities that could affect your future. [1]

    Read on to find out how a SWOT analysis could help your business grow.

    Why SWOT analysis is so powerful

    SWOT analysis is so helpful as it combines both internal and external factors to paint a completely clear picture of where your business currently stands, and where it’s likely to be in the future.

      Other techniques might be great at helping you assess your own organisation, but could ignore serious threats from competitors. An analysis that’s too insular could also miss key opportunities for growth and development outside the business.

      On the other hand, focusing solely on external factors means you’re reliant upon the actions of others, which takes control out of your hands and limits opportunities for internal improvement.

      Carrying out a SWOT analysis ensures you get the right balance of internal and external factors.

      When should I use a SWOT analysis

      A SWOT analysis can be helpful in many areas of your business, and we’ve listed some suggestions below:

      • When setting new business objectives

      • To analyse existing strategies

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      • When planning projects

      • When monitoring project/strategy success

      • When planning your marketing strategy

      There are no strict rules about where and when to use a SWOT analysis. As a general rule, they’re useful anytime you’d like to assess your current strengths and weaknesses and look for opportunities for growth.

      How to do a SWOT analysis

      Wondering exactly what a SWOT analysis looks like? Here are some key questions you should ask for each section.

      Strengths

      • What’s your unique selling point?

      • What do you do better than any of your competitors?

      • Which aspects of your organisation are particularly strong?

      • Which factors make customers choose you over similar businesses?

      • Which product or service makes you stand out from the crowd?

      Weaknesses

      • Where is there room for improvement within your business?

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      • Which factors cause you to miss out on sales?

      • Which area of your business has consistently encountered problems?

      • What about your business are customers likely to perceive as weakness?

      Opportunities

      • Are there any current trends you could take advantage of?

      • What changes in your market could provide opportunities for growth?

      • How can you take advantage of changes in policy?

      • Are there any local events you could become involved with?

      Threats

      • What are your competitors doing? Is this a threat to your business?

      • Could changes in your market negatively affect your business?

      • Do you have any quality issues?

      • Do you have any issues with cash-flow or debt?

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      • How seriously could these threats affect your business?

      Still not exactly sure what your SWOT analysis should look like? Check out the full examples below for inspiration.

      Example SWOT analysis 1

      You run a fast food shop that’s been experiencing a drop in sales, and conduct a SWOT analysis to find out why. Here are the results.

      Strengths

      • Cheaper food than any nearby shop.

      Weaknesses

      • High staff turnover – many staff are not fully qualified.

      • Scored very poorly on several recent health inspections.

      • Food quality much lower than nearby shops.

      Opportunities

      • New nightclubs are opening in the surrounding area, which will increase the number of customers late at night.

      • A local competition for best fast food shop is taking place soon.

      Threats

      • The increase in online review sites means that people can read negative reviews of the shop when deciding whether or not to visit.

      • A new chain fast food shop is opening down the street.

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      In this analysis, we can see that the weaknesses of the fast food shop outweigh the strengths – this is a key warning sign. Looking for ways to remedy the current weaknesses, and taking advantage of the listed opportunities should help this business to grow.

      Example SWOT analysis 2

      You run a small toy shop on a busy high street. You’d like to increase the growth of your business and decide to carry out a SWOT analysis. Check out the results below.

      Strengths

      • More unique toys than nearby shops.

      • Very friendly and personalized service, excellent staff.

      Weaknesses

      • More expensive toys than competitors.

      • Brand not as well established as big chain toy shops.

      Opportunities

      • Local children’s hospital is holding a big event to encourage toy donations. Sponsoring the event and donating toys could improve the company’s brand image and lead to positive publicity in local media.

      • A certain brand of toy is trending on social media. Focusing marketing efforts on this toy will encourage customers to visit.

      Threats

      • A large chain toy store is opening across the street and could threaten sales.

      • Video games are becoming more popular than traditional toys.

      In this analysis, we can see that the business has some key strengths and opportunities that can be of use when deciding how to deal with threats. Focusing on providing great service and building a good local image could help our small, independent toy shop deal with the threat of chain toy shop opening across the street.

      If you want to get a clearer idea of how your business can grow and improve, carrying out a detailed SWOT analysis is a great place to start.

      Reference

      [1] Mind Tools: SWOT Analysis

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      Eloise Best

      Eloise is an everyday health expert and runs My Vegan Supermarket, a vegan blog and database of supermarket products.

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      Last Updated on March 29, 2021

      5 Types of Horrible Bosses and How to Beat Them All

      5 Types of Horrible Bosses and How to Beat Them All

      When I left university I took a job immediately, I had been lucky as I had spent a year earning almost nothing as an intern so I was offered a role. On my first day I found that I had not been allocated a desk, there was no one to greet me so I was left for some hours ignored. I happened to snipe about this to another employee at the coffee machine two things happened. The first was that the person I had complained to was my new manager’s wife, and the second was, in his own words, ‘that he would come down on me like a ton of bricks if I crossed him…’

      What a great start to a job! I had moved to a new city, and had been at work for less than a morning when I had my first run in with the first style of bad manager. I didn’t stay long enough to find out what Mr Agressive would do next. Bad managers are a major issue. Research from Approved Index shows that more than four in ten employees (42%) state that they have previously quit a job because of a bad manager.

      The Dream Type Of Manager

      My best manager was a total opposite. A man who had been the head of the UK tax system and was working his retirement running a company I was a very junior and green employee for. I made a stupid mistake, one which cost a lot of time and money and I felt I was going to be sacked without doubt.

      I was nervous, beating myself up about what I had done, what would happen. At the end of the day I was called to his office, he had made me wait and I had spent that day talking to other employees, trying to understand where I had gone wrong. It had been a simple mistyped line of code which sent a massive print job out totally wrong. I learn how I should have done it and I fretted.

      My boss asked me to step into his office, he asked me to sit down. “Do you know what you did?” I babbled, yes, I had been stupid, I had not double-checked or asked for advice when I was doing something I had not really understood. It was totally my fault. He paused. “Will you do that again?” Of course I told him I would not, I would always double check, ask for help and not try to be so clever when I was not!

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      “Okay…”

      That was it. I paused and asked, should I clear my desk. He smiled. “You have learnt a valuable lesson, I can be sure that you will never make a mistake like that again. Why would I want to get rid of an employee who knows that?”

      I stayed with that company for many years, the way I was treated was a real object lesson in good management. Sadly, far too many poor managers exist out there.

      The Complete Catalogue of Bad Managers

      The Bully

      My first boss fitted into the classic bully class. This is so often the ‘old school’ management by power style. I encountered this style again in the retail sector where one manager felt the only way to get the best from staff was to bawl and yell.

      However, like so many bullies you will often find that this can be someone who either knows no better or is under stress and they are themselves running scared of the situation they have found themselves in.

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      The Invisible Boss

      This can either present itself as management from afar (usually the golf course or ‘important meetings) or just a boss who is too busy being important to deal with their staff.

      It can feel refreshing as you will often have almost total freedom with your manager taking little or no interest in your activities, however you will soon find that you also lack the support that a good manager will provide. Without direction you may feel you are doing well just to find that you are not delivering against expectations you were not told about and suddenly it is all your fault.

      The Micro Manager

      The frustration of having a manager who feels the need to be involved in everything you do. The polar opposite to the Invisible Boss you will feel that there is no trust in your work as they will want to meddle in everything you do.

      Dealing with the micro-manager can be difficult. Often their management style comes from their own insecurity. You can try confronting them, tell them that you can do your job however in many cases this will not succeed and can in fact make things worse.

      The Over Promoted Boss

      The Over promoted boss categorises someone who has no idea. They have found themselves in a management position through service, family or some corporate mystery. They are people who are not only highly unqualified to be managers they will generally be unable to do even your job.

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      You can find yourself persistently frustrated by the situation you are in, however it can seem impossible to get out without handing over your resignation.

      The Credit Stealer

      The credit stealer is the boss who will never publically acknowledge the work you do. You will put in the extra hours working on a project and you know that, in the ‘big meeting’ it will be your credit stealing boss who will take all of the credit!

      Again it is demoralising, you see all of the credit for your labour being stolen and this can often lead to good employees looking for new careers.

      3 Essential Ways to Work (Cope) with Bad Managers

      Whatever type of bad boss you have there are certain things that you can do to ensure that you get the recognition and protection you require to not only remain sane but to also build your career.

      1. Keep evidence

      Whether it is incidents with the bully or examples of projects you have completed with the credit stealer you will always be well served to keep notes and supporting evidence for projects you are working on.

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      Buy your own notebook and ensure that you are always making notes, it becomes a habit and a very useful one as you have a constant reminder as well as somewhere to explore ideas.

      Importantly, if you do have to go to HR or stand-up for yourself you will have clear records! Also, don’t always trust that corporate servers or emails will always be available or not tampered with. Keep your own content.

      2. Hold regular meetings

      Ensure that you make time for regular meetings with your boss. This is especially useful for the over-promoted or the invisible boss to allow you to ‘manage upwards’. Take charge where you can to set your objectives and use these meetings to set clear objectives and document the status of your work.

      3. Stand your ground, but be ready to jump…

      Remember that you don’t have to put up with poor management. If you have issues you should face them with your boss, maybe they do not know that they are coming across in a bad way.

      However, be ready to recognise if the situation is not going to change. If that is the case, keep your head down and get working on polishing your CV! If it isn’t working, there will be something better out there for you!

      Good luck!

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