STRENGTHS and WEAKNESSES of a company

The resilience of an organization increases from the identification of its strengths and weaknesses. Thanks to this internal diagnosis, an entity can design an action plan to optimize its results through this attention to available resources. In this Psychology-Online article we describe the strengths and weaknesses of a company with examples that can serve as inspiration for each entity to analyze its corporate potential based on its present situation.

The strengths of a company are those positive aspects of the company. These strengths constitute a solid value for a company, therefore, they are a pillarof the corporate brand on which to continue building. The strengths of a company are a great opportunity, therefore, they must not only be maintained but also reinforced in the action plan to increase positive results.

However, what is truly important about strengths is their prior identification through analysis. I mean, it is very important identify the strengths of a company to know what it is that positively differentiates an entity from the existing competition companies in that market niche. To identify strengths, an analysis should be carried out with, for example, the SWOT matrix, a useful tool to analyze a company. In the SWOT matrix, positive and negative aspects are classified, separating internal and external issues. In this way, the result is a table that includes strengths, weaknesses, opportunities and threats.

The example is a clarifying resource to deepen this question. Here are examples of valuable strengths for the company:

1. Location of a business. For example, a clothing store located on the corner of a commercial area that has nearby parking lots and bus lines.
2. Human Resources. What would a company be without the people who make it up? The stability of the team is an example of strength in the face of the opposite circumstance of changes produced frequently in the workforce as a result of layoffs and new incorporations.
3. Transformationdigital. Companies that invest in technology to take care of their online image are an example of How to be proactive at work and adapting to changes to carry out this digital transformation through effective resources. Such as the publication of a corporate blog, the design of a functional website or online marketing.
4. Specialization and low level of competition. For example, a person can increase their positioning in a specific sector through the specialization of a catalog of quality products and services that, in addition, has a low level of competence.
5. Training for employees. Those companies that facilitate access to training for workers have the great strength of knowledge as a fundamental investment.
6. A storyown. A corporate story that can be shared through the presentation section of the website.

The weaknesses of the company are those factors or areas that hinder or worsen the performance of the company. Weaknesses are those business issues that when undergoing an evaluation process do not reach the desired level of quality. However, in every weakness there is a possible strength when viewed from the perspective of opportunity.

In a complementary way to strengths, you can identify the company's weaknesses to know what are the points that can improve the organization. Through the identification of these possible shortcomings, it is possible to design a strategy to minimize their impact, taking into account the needs and weaknesses of the company. Otherwise, by responding indifferently to the weaknesses of the company, the situation persists over time.

In this case, the SWOT matrix analysis technique can also be applied in order to know the weaknesses and threats and be able to turn them into strengths and new opportunities.

Here is a selection of examples of weaknesses that can be part of a company:

1. Bad relationship between partners. In those businesses managed by two people who constantly argue before their differences of opinion in the direction of the business, the consequences of the lack of cooperation will be seen. It is obvious the importance of communication in the company.
2. Frequent complaints by customers. Consumer opinion is very important to business. When a company receives more negative evaluations than positive ones or when it mismanages these negative comments, it has weaknesses in customer service.
3. Lack of resources. It may happen that a company wants to invest more in a certain objective, however, it has the limit of the financing available.
4. Lack of leadership. Leadership is important in an organization since the leader guides the team in the action plan.
5. Stagnation. The company has long been in a comfort zone in the absence of a proactive attitude. It is not innovated or updated. Stagnation causes external factors and chance to have more weight than the company's own ability to influence the appropriate decisions of the company. A web page with a old-fashioned image or a corporate blog that has not been updated for months are examples of points to correct so that this weakness does not further condition the brand image.

All these weaknesses of a company can constitute an opportunity for improvement. All companies have strengths and weaknesses. However, successful entities are those that they are involved to maintain and develop their strengths to the maximum and to improve their weaknesses. This is only possible by making a diagnosis of the situation of each entity analyzed itself.

This article is merely informative, in Psychology-Online we do not have the power to make a diagnosis or recommend a treatment. We invite you to go to a psychologist to treat your particular case.