What in the world is a S.W.O.T? It sounds like what we do with an unruly kid.
In our case, S.W.O.T. analysis is an excellent way to review strategic direction and plans of any business or farming venture. S.W.O.T. merely means “Strengths, Weaknesses, Opportunities, Threats.” The S and W usually apply to the company or farm in question or are considered internal to the business. O and T are usually external and environmental opportunities or threats in the industry. The technique is attributed to several university studies of Fortune 500 companies during the 60’s and 70’s.
A S.W.O.T. analysis is usually one of the first things done to assess the horizon, and then specific objectives and goals can be made. In other words, before working on the answer, we need to understand the question. In short, what are risks and upsides, both internal and external, to our long-range outlook? Once those have been determined, we can move to the tools and actions to achieve our goals. Or by doing a S.W.O.T. analysis, we may determine that the objective is impossible to meet, and we redefine that objective.
This is a tool our company has used for years, and in very short time it not only exposes weaknesses in what we presumed attainable, but it opens up other possible directions. It provides an excellent compass in ill-defined territory.
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