Business Analysis Methods: SWOT, Brainstorming, and Fishbone Diagram

Understanding Problems and Resolution Phases

A problem is a situation where you must overcome an obstacle that was not anticipated. Problems differ in complexity and difficulty, determined by the difference between expectation and reality.

Phases of Problem Resolution

• Phrasing and specification of the problem.
• Production of hypotheses about possible causes.
• Practice (implementation) of the solution.
• Evaluation of results.

Root Cause Analysis: The Fishbone Diagram

The Cause-Effect Diagram (or Fishbone Diagram, also known as the Ishikawa Diagram) is a technique that helps identify, sort, and highlight the possible causes of problems.

Advantages of the Fishbone Diagram

• Allows the group to concentrate on the content of the problem, eliminating secondary events or personal interests.
• Helps determine the root causes of the problem.
• Encourages participation among working group members.
• Increases knowledge about a process.

Factors Influencing Decision Making

• The obligations.
• The restrictions.
• The experience and training of the decision-maker.
• The level of competitiveness in the environment.
• The company management structure.

Defining the Problem Clearly

Before making a decision, it is necessary to identify and define the problem and its limits clearly. We must also identify the persons to be involved in decision-making and those who are likely to be affected by it in some way.

Strategic Analysis and Group Techniques

SWOT Analysis

SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) constitutes the first step in formulating company objectives and strategies. This requires performing an analysis of the company itself and its environment.

Nominal Group Technique (NGT)

The Nominal Group Technique (NGT) is a method for solving group problems where a moderator presents the problem, and then every group member expresses all ideas and possible solutions in writing. After assessing each idea separately, they are arranged in such a way that the chosen solution is ranked first.

Brainstorming

Brainstorming is a technique that consists of producing the highest number of ideas on a determined matter by a group of people. In this technique, all ideas are first discussed without criticism or evaluation. After all ideas are exposed, a selection is made based on the topic's requirements.

Group Decision Methods

Decisions by Majority: Voting

Voting is when each member casts their vote for their preferred option.

Approval Voting

Approval Voting is where each member may vote for all options they find acceptable.

Sum of Ranks (Rank Ordering)

This method consists of ordering the alternatives numerically based on preference (more or less preferred). It begins by assigning the lowest rank (e.g., 1) to the worst option and subsequent numbers in ascending order to the best option.