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SWOT Analysis

SWOT analysis is a strategic analysis technique based on the creation of a matrix (Fig. 2), according to which it is necessary to use your advantages (strengths) and positive factors (opportunities), but at the same time it is necessary to minimize the risks associated with your vulnerabilities (weaknesses) and the negative influence of the external environment (threats).

Pic. 2. SWOT analysis algorithm

For example, having a unique technology or product is a strength. Growing demand for solutions to the problems your technology is designed to solve is an opportunity to sell more and earn more. However, if you have unstable production, high costs, or insufficient resources for production, this is a weakness that will hinder you. Competition is also a factor, as is the threat that competitors will develop a better product than you and ultimately overtake you, taking away your market share.

In general, SWOT analysis is a fairly flexible method. It allows you to analyze both the situation as a whole and specific parameters, such as the level of training of your staff compared to your competitors, the material and technical resources of yours and your competitors.

Based on all this, you need to consider how to plan your next steps.

In relation to a person, their strengths or weaknesses can be, respectively:

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Education or lack thereof;

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Work experience or lack thereof;

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Connections or lack thereof;

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Transportation or lack thereof;

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Loan repayments or lack thereof;

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Health status or physical limitations;

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Specific professional skills or lack thereof.

Also, in relation to a person, opportunities or threats for him are such factors of the external environment as:

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Economic growth or decline;

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Price declines or increases and inflation;

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Declines or increases in the central bank's key interest rate and borrowing costs (loans are generally terrible – never take them);

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Increased or decreased demand for workers in your specialty;

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The number of specialists in your specialty – the more there are, the worse it is for you;

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Excess or shortage of goods "on the market";

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Etc.

Your next task is to figure out how, based on this analysis, to best utilize all your capabilities to fit into the existing reality, extract maximum benefit from it, and move closer to achieving your goals.

The main thing to remember is that while thinking about yourself, don't forget to consider the needs of the society in which you live. Its state will ultimately determine your opportunities and threats, and literally every person has an impact on this. Also, remember that the goal isn't money; money is simply a means or a way to evaluate various types of resources—nothing more.

PESTLE‑analysis

Метод оценки внешней макросреды, включающий шесть ключевых групп внешних факторов (укрупнённо базовых и расширенных):

1. Базовых:

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Политические (стабильность власти, регулирование экономики, торговые соглашения);

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Экономические (темпы роста ВВП, инфляция, курсы валют);

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Социальные (демография, ценности, образ жизни);

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Технологические (инновации, цифровизация, автоматизация);

2. Расширенных:

Правовые (законы, стандарты, трудовое право);

Экологические (экологические нормы, устойчивое развитие, ресурсоэффективность);

Этические факторы;

Отраслевые;

Местный, национальный и глобальный уровень перечисленных выше факторов.

PESTLE‑анализ позволяет выявлять возможности и угрозы, корректировать стратегию с учётом внешних трендов.

SWOT-анализ по сравнеию с PEST-анализом:

SWOT-анализ учитывает и внешние и внутренние факторы, а PEST – только внешние;

SWOT-анализ показывает сильные и слабые стороны продукции или предприятия, возможности и угрозы для него, а PEST – влияние политических, социальных и технологических факторов.

SWOT-анализ решает вопросы развития и адаптации предприятия, а PEST – выявляет риски и угрозы.

PEST‑analysis has six extended modifications:

1. SLEPT (Social, Legal, Economic, Political, Technological)

This modification of the basic analysis complements the legal factor. It aims to assess a company's activities through the lens of legislation: current regulations are studied and changes in the legal environment that impact companies are forecasted.

2. PESTEL (Political, Economic, Social, Technological, Ecological, Legal)

This model complements the standard PEST analysis with two components:

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legal, similar to SLEPT;

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environmental, taking into account environmental trends and requirements.

PESTEL's relevance is growing due to the spread of green marketing and companies' desire to demonstrate environmental responsibility.

3. PESTELI (Political, Economic, Social, Technological, Ecological, Legal, Industrial)

This is an expanded version of PESTEL, incorporating the Industrial factor. It focuses on industry specifics: current trends, the competitive environment, and potential changes that could impact a company's position in its segment are analyzed.

4. STEEPLE (Social, Technological, Economic, Ethical, Political, Legal, Ecological)

The model combines the PEST elements with three additional factors:

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Legal;

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Ecological;

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Ethical.

The so-called "ethical" element assesses the extent to which a company's actions align with moral norms and social expectations. For example, it analyzes whether a company's strategy touches on sensitive socially significant topics that could trigger "cancel culture"—a sociopolitical phenomenon in which an individual or company is subjected to widespread condemnation and deprivation of support at various levels of public and professional circles—both online and on social media, and in real life.

5. PESTEELI (Political, Economic, Social, Technological, Ecological, Ethical, Legal, Industrial)

This model is the most comprehensive version of the PEST analysis, combining:

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Basic PEST elements;

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Legal;

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Industrial;

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Ecological;

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Ethical factors.

Thus, PESTEELI covers the broadest possible range of external influences on business.

6. LONGPEST (Local, National, Global PEST)

Unlike standard PEST, which typically focuses on the regional or national level, LONGPEST examines the same factors (Political, Economic, Social, and Technological) at three scales: