A SWOT analysis template is defined as the comparative analysis of potential opportunities and threats that lie in front of an investor in a particular market. It is a simple yet complex tool that is used by most of the businesses for decision making.
As the name implies, it is a tool that is used for the purpose of determining strengths and weakness of any company in relation to the other in the market. In most cases, a SWOT analysis is used before making any decision to invest in any company or in any market.
Section of Swot Analysis Template
A SWOT analysis template basically consists of three sections.
Key of Strengths
The first section is the key strengths section. This is divided into two parts. One part is where all the strengths of the company are listed whereas the other part has the weaknesses of the company listed. This way, an investor who reads the report knows what kind of opportunities are available for them in the market and from this point of view, they can decide whether the opportunities are worth investing in or not.
Opportunities And Threats
The second part of the swot analysis template is the opportunities and threats section. In this section, all the factors that impact the performance of the company are given a rank depending on their importance. Thus, for instance, low rank risks are put under the category of ‘low priority’ while high rank risks get highlighted. Other factors such as the ownership structure, type of ownership, number of shares issued etc get highlighted as well.
The third section is where the stockholders are given a rank depending on their priority. Then all the other factors that affect the performance of the company are calculated. The formulas used are derived by taking the weighted average of all the factors. In order to facilitate the process of calculating the expected returns, the best estimates are first given in the swot analysis template and then these estimates are further refined using the brainstorming session.
Swot Analysis Template
After the analysis of the strengths and weaknesses of the company, the strengths and the threats appear and the whole swot analysis template is then analyzed. The weaknesses refer to the financial aspects such as the debts, financial liabilities and so on. On the other hand, the threats refer to the competitive aspects such as increasing competition from other companies and so on.
When comparing the strength and the weakness of the company with the opportunities and threats posed by the various factors, the important factors that should be considered are the ownership structure, type of ownership, number of shares issued and so on.
It is important that the analysis is based on both positive and negative results. This is because in most of the times, when the business environment is discussed in the meetings, only the positive results are discussed and very rarely do the discussions include a discussion about the negative results. Thus, it is important that the swot analysis template also include both positive as well as negative outcomes in them.
When the analysis of the strengths, weaknesses, opportunities and threats in the business environment is done using the swot analysis template, the purpose is to highlight the strong areas and the potential for growth in order to gain the maximum customers or business.
Benefit From The Swot Analysis Template
For this, the valuation of the assets and the liabilities is done taking into consideration the future projections and the present position of the company. The entire procedure involves the use of the various factors that have an impact on the business. These factors are the competitors, the market, the economy, the internal conditions and so on.
There are many factors that have an impact on the value of the stock, so the analysis has to be done carefully. However, since it involves a lot of numbers, it is advisable to take expert advice before making any decision.
Some of the benefits that one can get when they make use of the templates include getting a good result when the stock is undervalued, showing the weaknesses as well as the strengths and being able to see the opportunities.
Swot Analysis Template Excel
Swot Analysis Template Word
Swot Analysis Template Ppt
This is why, it is important to use the templates that are available online. With the help of these, the right decisions regarding the management of the business and taking advantage of the opportunities that come up will be made with ease.