Internal Threat Analysis

Internal threat analysis is a part of SWOT (strengths, weaknesses, opportunities and threats) analysis. It is a technique used in analyzing companies to determine the company's performance levels.

Purpose

SWOT is used for strategic planning, improving company success, organizational development and identifying competitive advantage. Threats are a part of business that cause worry to managers. Threats can be internal and external and can cause problems to the well-being of a company. All threats should be investigated and evaluated.

Types

Internal threats include things such as financial constraints, cash flow problems and technological advances. External threats contain market position of the company's competitors, new product development and other factors such as pending legislation or litigation.

Process

A SWOT analysis begins by identifying the company's strengths and weaknesses. After that, the company looks into all potential opportunities they have and any possible threats. Companies then take these opportunities and threats and try to use them for their advantage. They do not pass up potential opportunities and they take the threats and try to mitigate them or turn them into opportunities.

Action

When internal threats arise, a company analyzes the threat and what effects may come from it. For example, if a threat dealing with a technological issue arises, a firm might hire a technical adviser or consultant. The issue would be discussed and possible solutions determined. Certain solutions are tried, such as the installation of better software or a better computer system.

References

• Work 911: SWOT Analysis
• My Strategic Plan: Internal and External Analysis