S . W . O . T

SWOT is an acronym for

Strengths, Weaknesses,

Opportunities, Threats.

WHAT IS SWOT ?

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture

A SWOT analysis focuses on the

four elements of the acronym, but

the graphic format you use varies

depending on the depth and

complexity of your effort.

Remember that the purpose of

performing a SWOT is to reveal

positive forces that work together

and potential problems that need to

be addressed or at least recognized

INTERNAL factors

the strengths and

weaknesses internal to the

organization

EXTERNAL factors

the opportunities and threats

presented by the

environment external to the

organization

HELPFUL factors

the strengths and

opportunities internal to the

organizations success

HARMFUL factors

the weaknesses and threats

presented by the

environment which have risk

to the organizations success

INTERNAL FACTORS:

STRENGTHS AND WEAKNESSESInternal factors include your resources and experiences. General

areas to consider are:

• Human resources - staff, volunteers, board members, target

population

• Physical resources - your location, building, equipment (Does your

building have a prime location? Does it need renovations?)

• Financial - grants, funding agencies, other sources of income

• Activities and processes - programs you run, systems you employ

• Past experiences - building blocks for learning and success, your

reputation in the community

INTERNAL FACTORS:

STRENGTHS AND WEAKNESSES

Don't be too modest when listing your strengths. If you're having

difficulty naming them, start by simply listing your characteristics (e.g.,

we're small, we're connected to the neighbourhood). Some of these

will probably be strengths.

Although the strengths and weakness of your organization are your

internal qualities, don't overlook the perspective of people outside your

group. Identify strengths and weaknesses from both your own point of

view and that of others-those you serve or deal with. Do others see

problems--or assets--that you don't?

EXTERNAL FACTORS:

OPPORTUNITIES AND THREATS

Cast a wide net for the external part of the assessment.

No organization, group, program, or neighborhood is immune to

outside events and forces. Consider your connectedness, for better

and worse, as you compile this part of your SWOT list.

EXTERNAL FACTORS:

OPPORTUNITIES AND THREATS

Forces and facts that your Co. does not control include:

• Future trends

• Culture (E.g.. Do current movies highlight your cause?)

• The economy - local, national, or international

• Funding sources - foundations, donors, Law

• Demographics - changes in the age, race, gender, culture of those you serve or

in your area

• The physical environment (Is your building in a growing part of town? Is the

internet always down?)

• Legislation (Do new legal requirements make your job harder...or easier?)

• Local, national or international events

Strengths

• What advantages does your organization have?

• What do you do better than anyone else?

• What unique or lowest-cost resources can you draw upon

that others can't?

• What do people in your market see as your strengths?

• What factors mean that you "get the sale"?

• What is your organization's Unique Selling Proposition

(USP)?

Strengths

Consider your strengths from both an internal perspective, and from the point of

view of your customers and people in your market.

Also, if you're having any difficulty identifying strengths, try writing down a list of

your organization's characteristics. Some of these will hopefully be strengths!

When looking at your strengths, think about them in relation to your competitors.

For example, if all of your competitors provide high quality products, then a high

quality production process is not a strength in your organization's market, it's a

necessity

Weaknesses

• What could you improve?

• What should you avoid?

• What are people in your market likely to see as weaknesses?

• What factors lose you sales?

• Again, consider this from an internal and external basis:

• Do other people seem to perceive weaknesses that you don't see?

• Are your competitors doing any better than you?

It's best to be realistic now, and face any unpleasant truths as soon as

possible.

Opportunities

What good opportunities can you spot?

What interesting trends are you aware of?

Useful opportunities can come from such things as:

Changes in technology and markets on both a broad and narrow scale.

Changes in government policy related to your field.

Changes in social patterns, population profiles, lifestyle changes, and

so on.

Local events.

Opportunities

A useful approach when looking at opportunities is to look at your

strengths and ask yourself whether these open up any opportunities.

Alternatively, look at your weaknesses and ask yourself whether you

could open up opportunities by eliminating them.

Threats

What obstacles do you face?

What are your competitors doing?

Are quality standards or specifications for your job, products or services

changing?

Is changing technology threatening your position?

Do you have bad debt or cash-flow problems?

Could any of your weaknesses seriously threaten your business?

Threats

When looking at opportunities and threats, PEST Analysis can help to

ensure that you don't overlook external factors, such as new

government regulations, or technological changes in your industry.

(PEST Analysis is a simple and widely used tool that helps you analyze

the Political, Economic, Socio-Cultural, and Technological changes in

your business environment. This helps you understand the "big picture"

forces of change that you're exposed to, and, from this, take advantage

of the opportunities that they present.)

WHEN DO YOU USE SWOT?

A SWOT analysis can offer helpful perspectives at any stage of an effort. You

might use it to:

• Explore possibilities for new efforts or solutions to problems.

• Make decisions about the best path for your initiative. Identifying your

opportunities for success in context of threats to success can clarify

directions and choices.

• Determine where change is possible. If you are at a juncture or turning point,

an inventory of your strengths and weaknesses can reveal priorities as well

as possibilities.

• Adjust and refine plans mid-course. A new opportunity might open wider

avenues, while a new threat could close a path that once existed.

WHO DEVELOPS THE SWOT?

The most common users of a SWOT analysis are team members and project

managers who are responsible for decision-making and strategic planning. But don't

overlook anyone in the creation stage!

An individual or small group can develop a SWOT analysis, but it will be more

effective if you take advantage of many stakeholders. Each person or group offers a

different perspective on the strengths and weaknesses of your program and has

different experiences of both.

Likewise, one staff member, or volunteer or stakeholder may have information about

an opportunity or threat that is essential to understanding your position and

determining your future

HOW ?

• Designate a leader or group facilitator who has good listening and group

process skills, and who can keep things moving and on track.

• Introduce the SWOT matrix and explain what problem you are wanting to

resolve or what project you want to initiate.

• Set the objective.

• Give the groups 20-30 minutes to brainstorm and fill out their own

strengths, weakness, opportunities and threats chart for your program,

initiative or effort. Encourage them not to rule out any ideas at this stage,

or the next.

HOW ?

• Remind staff that the way to have a good idea is to have lots of ideas.

Refinement can come later. In this way, the SWOT analysis also supports

valuable discussion within your group or organization as you honestly

assess.

• It helps to generate lots of comments about your organization and your

program, and even to put them in multiple categories if that provokes

thought.

• Once a list has been generated, it helps to refine it to the best 10 or fewer

points so that the analysis can be truly helpful.

HOW ?

• Proceed in SWOT order, recording strengths first, weaknesses second, etc.

• Begin by calling for the top priorities in each category -the strongest strength, most

dangerous weakness, biggest opportunity, worst threat--and continue to work

across each category.

• Ask one person at a time to report : ”person A, what do you see as strengths?”

• Discuss and record the results.

• Depending on your time frame and purpose:

a) Come to some consensus about the most important items in each category

b) Relate the analysis to your vision, mission, and goals

c) Translate the analysis to action plans and strategies

WHY?

• Use it to:

• Identify the issues or problems you intend to change

• Set or reaffirm goals

• Create an action plan

• Explore possibilities to problems.

• Make decisions for your initiative.

• Determine where change is possible.

• Adjust and refine plans mid-course.

WHEN?

Use it when:

• You want to launch a new line or service

• You want to analyze your existing approach to marketing, sales and

growth

• You are planning any of your strategies

• You want to enhance credibility in the market

• Re-evaluate your Co. Mission and Vision

• Looking at your competition. (Competitor analysis)

• You have an opportunity to make an acquisition

• You want to outsource a service

Example SWOT

Analysis

A start-up small

consultancy business

might draw up the

following SWOT

Analysis:

Strengths:

We are able to respond very quickly as we have no red tape, and no need

for higher management approval.

We are able to give really good customer care, as the current small amount

of work means we have plenty of time to devote to customers.

Our lead consultant has strong reputation in the market.

We can change direction quickly if we find that our marketing is not working.

We have low overheads, so we can offer good value to customers.

Weaknesses:

Our company has little market presence or reputation.

We have a small staff, with a shallow skills base in many areas.

We are vulnerable to vital staff being sick, and leaving.

Our cash flow will be unreliable in the early stages.

Opportunities:

Our business sector is expanding, with many future opportunities

for success.

Local government wants to encourage local businesses.

Our competitors may be slow to adopt new technologies.

Threats:

Developments in technology may change this market beyond our

ability to adapt.

A small change in the focus of a large competitor might wipe out

any market position we achieve.

Plan:

As a result of their SWOT Analysis, the consultancy may decide to

specialize in rapid response, good value services to local

businesses and local government.

Marketing would be in selected local publications to get the

greatest possible market presence for a set advertising budget,

and the consultancy should keep up-to-date with changes in

technology where possible.

IN SUMMARY

A SWOT analysis identifies your strengths, weaknesses, opportunities and threats to

assist you in making strategic plans and decisions.

SWOT is a simple yet comprehensive way of assessing the positive and negative

forces within and without your organization, so you can be better prepared to act

effectively. The more stakeholders you involve in preparing the SWOT, the more

valuable your analysis will be.

Whatever courses of action you decide on, the four-cornered SWOT analysis prompts

you to move in a balanced way throughout your program.

IN SUMMARY

It reminds you to:

1. build on your strengths

2. minimize your weaknesses

3. seize opportunities

4. counteract threats