SWOT analysis is an evaluation of the strategic environment in a firm. SWOT forms the initials for strengths (S), weaknesses (W), opportunities (O), and threats (T).strength and weaknesses can be termed as the internal environmental factors whereas, opportunities and threats can be classified as external environmental factors. SWOT analysis provides useful information about the organization resources and capabilities to its competitive environment in which it carries out its operations (Quick MBA, 2011).
Strengths refer to organization’s resources and capabilities that can be utilized as basis for developing a competitive merit. Weaknesses refer to the absence of certain strengths like lacking a patent protection or even when a large investment in a manufacturing industry hinders its capacity to respond quickly to changes in the strategic environment. Weaknesses give the competitors an upper hand in attacks. Opportunities are the unexploited resources, e.g. technology; it may also include unfulfilled customer needs. Threats are possible changes in the external environment that poses as threats to the firm (Nadine & Anne , 2009).
The role of S.W.O.T. analysis in finance and fiscal matters in public organizations is to show the organization’s amount of natural resources at its disposal (strengths). It also indicates the weaknesses, like in situations when tax and other deductions are beyond the organizations choice, and particularly falls under the local government mercies. The analysis also helps the organization to identify the set up trust funds in the States abundant wealth. It also identifies possible additional costs that may cause limited access to the most necessary resources (Businessballs, 2011).
SWOT analysis for Alaska children home.
Alaska Children Experiencing Homelessness, shelters homeless children and brings them up together as a family. The orphanage facility was founded by Moravian missionaries in 1939. The facility is located in Kwethluk Alaska. The organization can use its SWOT analysis to identify its strengths, weaknesses, opportunities, and threats. Its strength lays in the fact that mental health trust authority the AK, is in a better shape than any other place in Alaska. Some of the native corporations contribute in their favor.
However, money is not tied to outcomes in all times. Multiple funding streams can also lead to lack of proper coordination. The location also lacks proper infrastructure network, which costs a lot more to put up. This poses as potential weaknesses. The state has wealth, and a lot of planning going on which needs to be integrated into all plans, this is a potential opportunity. In the SWOT analysis, it was identified that the cost of health care is rising by day. In some instances, there is a deficiency in health care facilities and access. The rising cost of housing which is out-pacing wages was identified as potential threats.
A SWOT analysis is very necessary to help the organization plan for its future and draw it budgets. Without this analysis, the organization may lack proper knowledge of its strengths, which must be utilized to ensure organization’s survival, the weaknesses that might cause failures in future if not addressed, the opportunities which stand to be exploited, and the potential threats which are capable of causing significant financial drain and incapacitate growth or survival.