The concept of SWOT analysis is more or less defined in the field of marketing and management. But the definition of "SNW analysis" often causes some confusion. Let's try to understand these values together and find out the main features of these components.
SNW analysis: what is it
Analysis of the internal environment of a company or enterprise is a cumulative assessment of the enterprise or organization, which fully reflects its strengths, weaknesses and neutrals. In the field of marketing, the definition of "SNW analysis" is somewhat similar to the definition of SWOT analysis, but in the first there is still a zero aspect of the study. SNW is a common abbreviation consisting of three words of English origin (S is a strong side, N is a neutral position and W is a weak one).
As practice shows, SNW analysis of the internal environment of an enterprise is a fairly effective way to determine the competitiveness of an organization, in which it is best to choose the average market condition for a particular situation as a neutral position. Thus, the so-called zero point of competition is fixed. What does this give the company? First of all, this allows you to identify the most powerful side of the organization and improve it, that is, position the company in a particular market.
5 aspects of SNW analysis
A general analysis of the internal environment consists of the following aspects:
- Marketing.
- Finance.
- Operations.
- Human resources.
- Culture and corporation.
1. Marketing, in turn, consists of the following components: market share, enterprise competitiveness, assortment and quality of products (services), market conditions, sales, advertising and product positioning.
2. Analysis of the financial situation in the organization allows you to evaluate the effectiveness of strategic planning, as well as identify potential weaknesses in the organization and its position relative to competitors.
3. In any organization, a significant role is given to the analysis of managerial operations.
4. As they say, cadres decide everything. That is why human resources, namely the qualifications of employees, their attitude to the goals set, as well as the competence of employees and management in general, play one of the most important roles in the effectiveness of an enterprise.
5. Corporate culture is an unconventional factor, which nevertheless plays a significant role in the entire organization. You must admit that without a favorable climate in the team it is difficult to establish relations between employees and achieve effective fulfillment of tasks. The success of the organization largely depends on the coordinated work of all structural divisions.
SNW approach
As already mentioned, the SNW approach is a more advanced analysis of the organization's weaknesses and strengths. This approach pursues the following goals: to identify the most strengths and engage in their improvement, and weaknesses in order to eliminate them altogether or to make them stronger. In addition, it is recommended to determine the so-called medium-term state, which will determine a more complete picture of the organization. So, it often happens that a particular company in the competition is in almost all but one of the key positions in state N, and only one position in state S. A neutral position is the average state of an organization for a certain period of time .
Methodology
An enterprise SNW analysis examines the following aspects of an organization’s internal environment:
- The main business strategy of the organization.
- The competitiveness of goods, products or services in the relevant market.
- The presence of certain funds.
- Efficiency of a trademark, innovations and work of employees.
- Marketing and production level.
In order to carefully analyze the internal environment of the organization, the method of SNW analysis is used, which for the most part comes down to filling out the following table:
Strategic position | Strong - S | Neutral - N | Weak - W |
Organization Strategy | | | |
Org structure | | | |
Financial position | | | |
Current balance | | | |
Accounting level | | | |
Finance as an infrastructure | | | |
Availability of investment resources | | | |
Finance as a level of financial management | | | |
Product as a whole competitiveness | | | |
Cost structure (overall) | | | |
Distribution as a sales system | | | |
Distribution as a material structure | | | |
Distribution as a mastery of the sales process | | | |
Information Technology | | | |
Innovation as a way to market products in an appropriate market | | | |
Ability to lead | | | |
Leadership Ability | | | |
Leadership ability of each employee | | | |
Ability to lead as aggregate objective factors | | | |
Level of production in general | | | |
The effectiveness of the material base | | | |
The effectiveness of the workforce | | | |
Marketing level | | | |
Management degree | | | |
Brand Quality | | | |
Market reputation | | | |
Reputation as an employer | | | |
Relations with authorities | | | |
Relations with trade unions | | | |
Innovation as a research and development | | | |
After Sales Service | | | |
Degree of vertical integration | | | |
Corporate Culture | | | |
Strategic alliances | | | |
SNW analysis result
As a result, a completely clear picture should appear before the specialists: with the SNW approach, all the advantages of the analysis remain valid, and the SNW analysis fixes a clear situation on the market. Thus, with the help of special programs, it is possible to compare the obtained indicators with the organization’s strategy and determine the further direction of activity, that is, optimize the management process itself, making it even more effective.