The strength of a company can be defined as a number of factors that contribute to the growth of the company and may act as a component that separates them from the competition. It can appear as a variety of aspects such as loyal client bases, unique technology, a strong brand, as well as other factors (Kenton, 2021). Weaknesses work in the opposite direction, essentially halting efficient and optimum performance within an organization. Within workplace and organizational behaviors, strengths can appear as meeting goals, low turnover, and innovation in work efforts or the creation of the company’s product or service. Weaknesses can be noticed through trends such as increased turnover rates, an inadequate supply chain, or misallocation of resources and labor.
Most strengths and weaknesses are decided internally within a company. Often, things such as employees, intellectual property, or locations are decided by stakeholders and relate to both strengths and weaknesses. However, factors that are associated with either time, location, or other situational factors can also influence the strengths and weaknesses of a company. For instance, the location of a workplace may have both benefits and drawbacks. Similarly, while certain employees may excel in certain areas they may lack the skill or appropriate behaviors necessary.
The primary function of SWOT analysis allows a company to assess its current status prior to implementing a new strategy. Strengths are identified as unique elements and what drive the optimal functioning of the company. Like strengths, weaknesses inherent to the company can be summarized as areas that are in need of improvement. As such, in the case of a shift, it would be essential to observe if any new elements appear which are either advantageous or special within the company’s process. For weaknesses, a shift would indicate if more improvement is necessary or if changes have increased the operations of the company. In both cases, the company stakeholder should either continue to utilize the strengths while implementing strategies to address the weaknesses.
Reference
Kenton, W. (2021). Strength, Weakness, Opportunity, and Threat (SWOT) Analysis. Investopedia.