Question

Why is it important to conduct a SWOT analysis? What are the weaknesses of a SWOT analysis? Why is that so?

Answer 1

ans....
SWOT Analysis:- It stands for strength, weakness, opportunity and threat related to any organization. It is very important to conduct a SWOT analysis for the organizational growth and to reduce the related risks.
It has little or no cost and anyone who understands your business can perform a SWOT analysis.
You can also use a SWOT analysis when you don't have much time to address a complex situation.
SWOT analysis is important to identify a strategic niche of the company could exploit.
The entrepreneur is able to access the feasibility of his goals and objectives using SWOT analysis.
Inspite of having strength of SWOT analysis there are some weaknesses also involved in SWOT analysis. Some of the important weaknesses are:-
Subjective Analysis:- Subjective analysis has been done in SWOT analysis by collecting the data where it reflects the bias of the individuals who collect the fake data to participate in the brainstorming session. So in some of the cases it is not a good criteria to evaluate the performance.
Ambiguity:- SWOT analysis is one dimensional process where each problem viewed from single point of view. But sometimes it happens that one problem can be strength for some of the ideas and can be weakness for some of the ideas so one dimensional analysis leads to wrong decision making sometimes.
No weighting factor:- SWOT analysis has been done on the 4 factors that is strength, weakness, opportunity and threat but these factors but this tool does not provides any mechanism to rank the significance of one factor versus another.