Wednesday, 21 April 2021 16:49

Assessing your Company's Strengths and Shortcomings

As a business leader, understanding your company’s strengths and weaknesses makes a big difference in assessing where your business stands in the marketplace. It may sound simple, but often people’s perspective is clouded by preconceptions, biases, hopes, and other factors—often times making it difficult to get a true reading on where a business stands.StrengthShortcoming

At American Lumber, we believe in evaluating the many components that go into our company’s success. If something doesn’t go as planned, we find that objectively analyzing what transpired can help us learn from our mistakes and succeed in the future. Additionally, when things do go right, we seek to understand what did work so we can apply the same principles going forward. 

The key to an objective understanding of strengths and weaknesses starts with a SWOT analysis: 

Strengths
Weaknesses
Opportunities
Threats 

This exercise allows for a balanced comparison between both internal and external factors. Typically, external factors encompass customer demographics, vendor relationships, economic trends, sources of funding, and political or environmental legislation. Internal factors generally cover human resources, finances, facilities, and business operations and processes. 

What is a SWOT analysis? 

A SWOT analysis offers a detailed, unbiased overview of your business as a whole.  At the same time, it is training you and your team to consider every factor that could possibly affect a project or your business as a whole.

Who’s best equipped to undertake a thorough SWOT analysis? Business leaders are a common choice, but the selection process shouldn’t end there. The most effective approach involves getting input from others. Getting input from a variety of team members gives you the collective knowledge you need to adequately analyze your business as a whole.

Understanding the Key parts of a SWOT analysis 

Strengths. Take a deep dive into all aspects of the business, from organizational structure to employee training and company culture. Are you competitive in the marketplace? Are you ahead of the market in product development? Do you have a strong, engaged workforce?

We found this step to be a great benefit in assessing the strength of our leadership team at our hardwood sawmills and yards and our goal to continually improve our facilities and hardwood lumber offerings.  Like our Custom Lumber Grades, for example!  

Weaknesses. When analyzing your business, the term “weakness” can be a bit misleading. Often it is seen as a warning signal letting you know something needs to be addressed. Areas of weakness may include those mentioned above under “strengths” (if your analysis indicates these efforts need some attention), or in some other areas of operations. 

In this step, it is important to pinpoint weaknesses, and then work to avoid them improve those aspects of your company.

Opportunities. One of the best parts of doing a SWOT analysis is discovering new opportunities for growth you may not have considered previously. It gives you the opportunity to stop and think about how your products or services fare in the marketplace. If you have a competitive advantage, what can you do to build brand awareness?  What about venturing into new markets? Approached objectively, any number of opportunities may present themselves. 

Threats. Many business owners can get caught up in the life of daily operations. This can allow them to be slow to detect threats in their midst. A thoughtful SWOT analysis looks at the wide range of possibilities—everything from a potential spike in employee turnover to the emergence of a strong business competitor. By Identifying possible threats you can dramatically influence the way you strategize and prepare for the future. 

Understanding the strengths and weaknesses of your business, its opportunities, and threats offers you a clear, focused view on what to do now how you can improve and grow in the months and years to come. 

American Lumber
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 

 

 

 

Last modified on Wednesday, 21 April 2021 17:14

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.