July 9, 2025 • 10 mins
Unleash your small business's potential with the right tools! Listen to Ed Drozda, The Small Business Doctor explain how SWOT Analysis can be an invaluable asset in strategic planning. #SWOT #BusinessTips #Podcast
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Ed Drozda (00:10):
Welcome to The Water Trough where we can't make you
drink, but we will make youthink.
My name is Ed Drozda, The SmallBusiness Doctor, and I'm really
excited you chose to join mehere as we discuss topics that
are important for small businessfolks just like you.
If you're looking for ideas,inspiration, and possibility,
you've come to the right place.
Join us as we take steps to helpyou create the healthy business
that you've all.
Always wanted.
(00:44):
Welcome back to The WaterTrough.
This is Ed Drozda, The SmallBusiness Doctor.
SWOT Analysis.
Now, I'm not talking about swatas in swatting mosquitoes, and
flies, and things like that.
I'm talking about the S-W-O-Tanalysis; strengths, weaknesses,
opportunities, and threats.
(01:05):
It's an analysis that's been invogue since the 1980s, although
its predecessors date backprobably to the 1950s.
In the interim, there's been alot of discussion about the
validity of the tool as well,how it's utilized and if it
really is worthwhile and what itleads to.
But for the moment, let's justconsider SWOT Analysis for what
it is and what it might be ableto do for you.
(01:27):
It's a concept that we teach inbusiness school.
It is a concept that simplifiespreparing for strategic
planning.
It is not, in and of itself astrategic plan.
It is a way of bringing togetherbits of information that can be
valuable in creating a strategicplan.
(01:47):
So let's look at each of theindividual components.
The first of these is the S; Sas in strengths.
When we talk about strengths, Iimagine a lot of things come to
mind.
For example, we might think ofthe things that we do very well.
We might think of things that weare very capable of doing.
(02:09):
We might look at our mostoutstanding accomplishments.
These are strengths.
Strengths are things that wetypically identify to showcase
our value, to showcase ourworth.
Generally speaking, we look atstrengths as being a positive
thing, but we can't forget thatstrengths can in fact be a
(02:30):
negative thing.
Sometimes our strengths areoverpowering, overwhelming, and
they can interfere with ourintention and our expectations.
But for the moment, let's lookat strengths as if they are
positive things that we considera value and that we believe
demonstrate our value as well.
(02:53):
The second of the four elementsof SWOT Analysis are weaknesses.
Weaknesses are things that weconsider our shortcomings,
things that we look upon asplaces for improvement, things
that we could do better, thingsthat we understand or don't and
are willing to take steps toimprove upon.
(03:15):
We tend to look at weaknesses,not as shortcomings, but as
things that can be made better.
Let's move on now toopportunities.
Opportunities are things thatare available to us.
They could be things both withinthe organization and outside the
organization.
(03:37):
Things that we could improveupon in the organization that
will catapult our performance,our productivity, and our
revenue could be consideredopportunities.
Outside of the workspace,opportunities could come in the
form of new business clientele,in things such as new
technology, which can lead toinnovation and a better way of
(04:02):
doing the business that we do.
So opportunity can be bothinternal and external to our
organization.
The fourth element of the SWOTAnalysis is threats.
Threats are those things thatcan have a negative impact upon
our business.
(04:23):
Threats as opportunities canarise both within and outside of
the organization.
Within an organization, a threatmight be failed communication
that has led to the prospect ofa strike in a union shop.
A threat might be a change inregulations that's going to
(04:44):
impact the way that we're ableto ship our product overseas,
i.e., the tariffs in the currentenvironment.
These are threats.
Sometimes they are forced uponus, sometimes they're things
that arise from within.
In either case, they have thepotential to have a negative
impact on our businessoperations.
(05:06):
The fifth and arguably the mostimportant component of SWOT
Analysis doesn't have aninitial.
That fifth component isanalysis.
What do we do with theinformation that we have put
together here?
We've identified strengths,weaknesses, opportunities, and
threats.
But how do we utilize these tohelp us in strategic management,
(05:32):
in creation of strategic plans?
Let's start by saying that theinformation that we derive tells
us a lot about the currentcondition of our business, about
the readiness of our business,about our potential, and about
the things that we need to keepour eyes on.
(05:53):
Oftentimes, we say, do more ofthe same thing.
If it's good.
And mitigate the effects ofthose things that aren't so
good.
That can include our strengths,our weaknesses, and the
opportunities and the threats.
So how do we analyze thisinformation in a useful way to
(06:15):
help us build a stronger, moreresilient and profitable
business?
The answer to this question isbeyond the scope of a brief
podcast such as this.
So rather than trying to getinto the full details, I'll
start by saying that theelements that you've taken the
(06:36):
time to uncover in the SWOTAnalysis are in and of
themselves incredibly valuable.
Depending upon yourorganization, how information is
disseminated, how it'sprocessed, those things will
give rise to the manner in whichthe information will be
utilized.
In an organization with multipledepartments, it would be ideal
(07:00):
that the elements of the SWOTAnalysis are identified for each
department, and that once theinformation has been collected,
that the information be given aninitial review by the
department, head or manager,whatever the case might be.
And then collectively, theinformation is looked at with
(07:24):
senior management, identifyingcommonalities and threads among
the various departments andfacets of the organization.
As with any strategic managementor strategic planning endeavor,
it is necessary that anorganization opens up all
potential communicationchannels.
(07:44):
It is not sufficient for thesenior management to work in a
vacuum.
It's absolutely imperative tobring in the various managerial
components of the departmentswithin the organization.
Even in a small organizationthat may not have such
managerial stratification, it'scritical that all key players,
(08:07):
that as players with aresponsibility for specific
components of the business arebrought together in the
strategic planning process.
Reviewing the SWOT elements is avery important step in
developing a strategic endeavor,in developing a strategic plan.
(08:31):
Taking these elements intoconsideration will allow a much
more clear picture of what isgoing on and will help to stage
the business for appropriateplanning that will lead to the
expected, the desired outcome.
Remember, SWOT Analysis is notan end all.
(08:53):
It is a tool in your toolboxthat can be used in the
development of strategic plans.
It is a tool that can be usedfor ongoing surveillance and
maintenance of businessoperations.
It doesn't only have to be usedfor strategic planning.
It is a tool that is designed togive us information, which will
(09:14):
then lead to more in-depthanalysis.
That, in turn, will lead tofurther answers.
This is Ed Drozda, The SmallBusiness Doctor.
I hope you've enjoyed thislittle conversation about SWOT
Analysis, and I hope that you'llfind it useful in your business
(09:35):
operations.
Until we meet again here at TheWater Trough, I wanna wish you a
healthy business.
Welcome to The Water Trough where we can't make you
drink, but we will make youthink.
My name is Ed Drozda, The SmallBusiness Doctor, and I'm really
excited you chose to join mehere as we discuss topics that
are important for small businessfolks just like you.
If you're looking for ideas,inspiration, and possibility,
you've come to the right place.
Join us as we take steps to helpyou create the healthy business
that you've all.
Always wanted.
(00:44):
Welcome back to The WaterTrough.
This is Ed Drozda, The SmallBusiness Doctor.
SWOT Analysis.
Now, I'm not talking about swatas in swatting mosquitoes, and
flies, and things like that.
I'm talking about the S-W-O-Tanalysis; strengths, weaknesses,
opportunities, and threats.
(01:05):
It's an analysis that's been invogue since the 1980s, although
its predecessors date backprobably to the 1950s.
In the interim, there's been alot of discussion about the
validity of the tool as well,how it's utilized and if it
really is worthwhile and what itleads to.
But for the moment, let's justconsider SWOT Analysis for what
it is and what it might be ableto do for you.
(01:27):
It's a concept that we teach inbusiness school.
It is a concept that simplifiespreparing for strategic
planning.
It is not, in and of itself astrategic plan.
It is a way of bringing togetherbits of information that can be
valuable in creating a strategicplan.
(01:47):
So let's look at each of theindividual components.
The first of these is the S; Sas in strengths.
When we talk about strengths, Iimagine a lot of things come to
mind.
For example, we might think ofthe things that we do very well.
We might think of things that weare very capable of doing.
(02:09):
We might look at our mostoutstanding accomplishments.
These are strengths.
Strengths are things that wetypically identify to showcase
our value, to showcase ourworth.
Generally speaking, we look atstrengths as being a positive
thing, but we can't forget thatstrengths can in fact be a
(02:30):
negative thing.
Sometimes our strengths areoverpowering, overwhelming, and
they can interfere with ourintention and our expectations.
But for the moment, let's lookat strengths as if they are
positive things that we considera value and that we believe
demonstrate our value as well.
(02:53):
The second of the four elementsof SWOT Analysis are weaknesses.
Weaknesses are things that weconsider our shortcomings,
things that we look upon asplaces for improvement, things
that we could do better, thingsthat we understand or don't and
are willing to take steps toimprove upon.
(03:15):
We tend to look at weaknesses,not as shortcomings, but as
things that can be made better.
Let's move on now toopportunities.
Opportunities are things thatare available to us.
They could be things both withinthe organization and outside the
organization.
(03:37):
Things that we could improveupon in the organization that
will catapult our performance,our productivity, and our
revenue could be consideredopportunities.
Outside of the workspace,opportunities could come in the
form of new business clientele,in things such as new
technology, which can lead toinnovation and a better way of
(04:02):
doing the business that we do.
So opportunity can be bothinternal and external to our
organization.
The fourth element of the SWOTAnalysis is threats.
Threats are those things thatcan have a negative impact upon
our business.
(04:23):
Threats as opportunities canarise both within and outside of
the organization.
Within an organization, a threatmight be failed communication
that has led to the prospect ofa strike in a union shop.
A threat might be a change inregulations that's going to
(04:44):
impact the way that we're ableto ship our product overseas,
i.e., the tariffs in the currentenvironment.
These are threats.
Sometimes they are forced uponus, sometimes they're things
that arise from within.
In either case, they have thepotential to have a negative
impact on our businessoperations.
(05:06):
The fifth and arguably the mostimportant component of SWOT
Analysis doesn't have aninitial.
That fifth component isanalysis.
What do we do with theinformation that we have put
together here?
We've identified strengths,weaknesses, opportunities, and
threats.
But how do we utilize these tohelp us in strategic management,
(05:32):
in creation of strategic plans?
Let's start by saying that theinformation that we derive tells
us a lot about the currentcondition of our business, about
the readiness of our business,about our potential, and about
the things that we need to keepour eyes on.
(05:53):
Oftentimes, we say, do more ofthe same thing.
If it's good.
And mitigate the effects ofthose things that aren't so
good.
That can include our strengths,our weaknesses, and the
opportunities and the threats.
So how do we analyze thisinformation in a useful way to
(06:15):
help us build a stronger, moreresilient and profitable
business?
The answer to this question isbeyond the scope of a brief
podcast such as this.
So rather than trying to getinto the full details, I'll
start by saying that theelements that you've taken the
(06:36):
time to uncover in the SWOTAnalysis are in and of
themselves incredibly valuable.
Depending upon yourorganization, how information is
disseminated, how it'sprocessed, those things will
give rise to the manner in whichthe information will be
utilized.
In an organization with multipledepartments, it would be ideal
(07:00):
that the elements of the SWOTAnalysis are identified for each
department, and that once theinformation has been collected,
that the information be given aninitial review by the
department, head or manager,whatever the case might be.
And then collectively, theinformation is looked at with
(07:24):
senior management, identifyingcommonalities and threads among
the various departments andfacets of the organization.
As with any strategic managementor strategic planning endeavor,
it is necessary that anorganization opens up all
potential communicationchannels.
(07:44):
It is not sufficient for thesenior management to work in a
vacuum.
It's absolutely imperative tobring in the various managerial
components of the departmentswithin the organization.
Even in a small organizationthat may not have such
managerial stratification, it'scritical that all key players,
(08:07):
that as players with aresponsibility for specific
components of the business arebrought together in the
strategic planning process.
Reviewing the SWOT elements is avery important step in
developing a strategic endeavor,in developing a strategic plan.
(08:31):
Taking these elements intoconsideration will allow a much
more clear picture of what isgoing on and will help to stage
the business for appropriateplanning that will lead to the
expected, the desired outcome.
Remember, SWOT Analysis is notan end all.
(08:53):
It is a tool in your toolboxthat can be used in the
development of strategic plans.
It is a tool that can be usedfor ongoing surveillance and
maintenance of businessoperations.
It doesn't only have to be usedfor strategic planning.
It is a tool that is designed togive us information, which will
(09:14):
then lead to more in-depthanalysis.
That, in turn, will lead tofurther answers.
This is Ed Drozda, The SmallBusiness Doctor.
I hope you've enjoyed thislittle conversation about SWOT
Analysis, and I hope that you'llfind it useful in your business
(09:35):
operations.
Until we meet again here at TheWater Trough, I wanna wish you a
healthy business.
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