What is a SWOT Analysis?
SWOT Analysis is a tool for auditing an organization
and its environment. It is the first stage of planning and helps to
focus on key issues. Once key issues have been identified, they feed
into the unit’s goals and objectives/strategic directions. It
accomplishes this by assessing an organizations strengths (what an
organization can do) and weaknesses (what an organization cannot do)
in addition to opportunities (potential favorable conditions for an
organization) and threats (potential unfavorable conditions for an
organization). SWOT analysis is an important step in planning and
its value is often underestimated despite the simplicity in creation.
The role of SWOT analysis is to take the information from the environmental
analysis and separate it into internal issues (strengths and weaknesses)
and external issues (opportunities and threats). Once this is completed,
SWOT analysis determines if the information indicates something that
will assist the organization in accomplishing its objectives (a strength
or opportunity), or if it indicates an obstacle that must be overcome
or minimized to achieve desired results (weakness or threat) (Marketing
Strategy, 1998).
Elements of SWOT Analysis:
Strengths and weaknesses are internal factors. Opportunities and threats
are external factors.
Strengths—internal to the unit; are a
unit's resources and capabilities that can be used as a basis
for developing a competitive advantage; strengths should be realistic
and not modest.
A well-developed listing of strengths should be able to answer a couple
of questions.
o What are the unit's advantages?
o What does the unit do well?
Weaknesses—internal force that could serve as a barrier
to maintain or achieve a competitive advantage; a limitation, fault
or defect of the unit; weaknesses should be truthful so that they
may be overcome as quickly as possible.
A well-developed listing of weaknesses should be able to answer a
few questions (PMI, 1999).
o What can be improved?
o What is done poorly?
o What should be avoided?
Opportunities—any favorable situation present now or
in the future in the external environment.
Threats—External force that could inhibit the maintenance
or attainment of a competitive advantage; any unfavorable situation
in the external environment that is potentially damaging now or in
the future.
Benefits of a SWOT Analysis:
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Scaleable
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Simplicity
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Low Cost
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Flexibility
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Collaborative
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Quickness
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Integrateable
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Develops boundary-spanning skills and promotes
creative, integrative thinking and dialogue.
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Allows timely, informed actions to overcome weaknesses
and minimize threats
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Prepares the organization to focus on identifying
strategic issues.
Process Guidelines for a SWOT Analysis:
Be comprehensive: Keep it broad and open.
It can be narrowed later. Include as many staff and internal stakeholders
as possible in the process.
Manage the group dynamics: You want to hear
from everyone in an open, collaborative, and creative environment.
Don't let the group dynamics determine the outcome. Keep
the lines of communication open for meaningful discussion.
Keep the thinking straight: Stay within the
SWOT framework; it is designed to organize thinking and expand
group concepts of what's possible.
Fight for clarity: Work very hard in the
facilitation process to make every statement as clear and unambiguous
as possible. Fuzzy strategies fail.
Where do I enter the results of my SWOT Analysis?
The results of your SWOT Analysis should be incorporated
into your planning group's strategic plan or your reporting group's
action plan under the section "Environmental Scan". Two categories of
information should be entered: strengths and areas of improvement (weaknesses).
Type this information manually into the plan once
you have saved the document from TracDat.
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