SWOT ANALYSIS AND ITS SIGNIFICANCE IN FORMATION OF ECONOMIC DIAGNOSTICS OF A BUSINESS ENTITY

Abstract

The use of SWOT analysis in the modern economic space is characterized by its ample opportunities for active management, both by a business entity and the economy as a whole. SWOT analysis is a universal type of analysis. The use of this type of analysis allows you to use it for different objects of analytics and at different levels, for example, for analyzing goods, regions, competitors, companies, etc. The advantage of SWOT analysis when carrying out analytical procedures is that it is a brief analysis of marketing information. In turn, marketing analysis allows us to make a conclusion about the sustainable direction of business development, which is the most beneficial for a business entity. SWOT analysis is a system analysis tool and can be used by a business entity when making business decisions, both of the current order and for the future to determine the strategy or financial policy of the business entity. At the same time, the results of the analysis are a kind of auxiliary stage in the formation of a sequence of measures necessary to achieve the goals set for the business entity. In addition, it should be noted that SWOT analysis, despite all its advantages, has a number of limitations, the most important of which is the need to think within a certain framework, and that the invariable condition is that all environmental factors can only act constantly, although in fact, this action is mostly invisible. When conducting an analysis, one cannot consider its individual elements; a comprehensive assessment of the entire process as a whole is required. Failure to comply with this requirement will cause errors in the analytical procedures of the SWOT analysis. It is also important that the results of this analysis are not long-term in a rapidly changing market, therefore, a decision must be made immediately after the analysis.