Definition of SWOT Analysis Essay

–In Human Resource Management SWOT analysis refers to a useful tool by identifying advantage or disadvantage of a company. Also help company thoroughly evaluating pros and cons before formulating its development strategies. Each letter in â€Å"SWOT† stands for strengths, weaknesses, opportunities, threats respectively. In this four points, â€Å"S† and â€Å"W† are internal factors that a company can do such as capacity and human resources. O and T, however, are external factors which a company may do such as laws and different culture. This method focuses on their own actual strengths of an enterprise as well as comparison with competitors. Therefore, this serious tool can help to decrease difficulties in corporate decision-making and make a more clearly human resource planning. But how we process a SWOT analysis? Firstly, make use of a variety of survey research methods in order to analyze various environmental factors including internal and external factors according to history and current situations of an organization. Secondly, list the investigation result ordered by importance level. At last, take four dimensions in the SWOT analysis into account, in this way we can build a SWOT matrix. For example, Haier, a famous multi-national enterprise that produce household appliance such as TV, refrigerator, washing machine and so on. The following diagram is a typical SWOT analysis for Haier.