Tuesday, June 1, 2010

Threat is an Opportunity - A Case Study

In the SWOT Analysis, there are four factors of SWOT which includes the external and internal factors. In the collection of data, you need to group all data belongs to the appropriate external and internal factors and categorize them into the appropriate Strengths; Weaknesses; Opportunities and Threats.

In the real world of business, there are many incidences of Threats emerged. While you need to take full advantages of any opportunities arises, there are threats that you may not be able to avoid. Since it cannot be avoided, you must develop an effective plan to mitigate it.

Whenever a Threats happen, it will turn the situation into a crisis for the business. This crisis can be very damaging to the survival and future of the business. Although crisis can be small and controllable at times, there are crisis that is big enough to put your business a real losing situation. When this situation occurred, you may need heavy capital to revive the business.

However, there is a saying which says "Every Crisis is an Opportunity". This saying hold true only if you carefully analyze what causes the crisis, learn from it and establish a plan to ensure it never happen again. This is called a preventive plan which must be developed, tested and placed and take steps to implement them.

However, the most effective preventive action is to implement it without any delay. Preventive action means taking all precautionary steps and actions to put in place to plug all weaknesses holes in the system and made the overall system a error free and robust working system.

By : Dr._LM_Foong

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