SWOT Analysis

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SWOT Analysis
Introduction
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a
subjective assessment of data which is organized into a logical order that helps understanding,
presentation, discussion and decision-making. It provides a framework for analysing a company's strengths
and weaknesses, and the opportunities and threats it faces.
A SWOT analysis is usually represented as a grid:
Strengths
What do you do well?
What do others see as key strengths?
What unique resources can be drawn upon?
Examples:
Capabilities
Competitive advantages
Unique selling points
Resources / assets
Location / geography
Processes / systems
Culture
Weaknesses
What could be improved?
What do others see as weaknesses?
Examples:
Capability gaps
Deadlines / pressures
Vulnerabilities
Cashflow
Reliability
Processes / systems
Opportunities
What opportunities are available to you?
What trends can be taken advantage of?
How can strengths be turned into opportunities?
Threats
What trends could harm you?
What is the competition doing?
What threats do the weaknesses expose you to?
Examples:
Market developments
Competitors vulnerabilities
Industry / social trends
Technology developments
partnerships
Examples:
Political effects
Legislation changes
Environmental pressures
Competitor activities
Succession
Finances
Adapted from Mind Tools, and Business Balls
Further information
http://www.businessballs.com/swotanalysisfreetemplate.htm
http://www.mindtools.com/pages/article/newTMC_05.htm
Kotler, P., (1997), ‘Marketing Management - analysis, planning, implementation and control’, Prentice
Hall International, London.
Turner, S., 2002, ‘Tools for Success: A Manager Guide’, McGraw Hill Professional, Berkshire, UK
TRANSFORMING CAPABILITY SUPPORT MATERIALS
LEADING VISION CREATION
SWOT Analysis
Instructions
Key Steps:
Using the SWOT analysis template grid  Identify the key organisational strengths
 Identify the key organisational weaknesses
 Identify the main opportunities for the organisation
 Identify the key external threats (refer to PESTLE)
 Use the following analysis to undertake deeper investigation into each of the quadrants
 Use the analysis to identify actions to maximise strengths, improve weaknesses, mitigate the
threats and optimise the opportunities
Further analysis can be undertaken on each of the quadrants:
Strengths / weakness analysis
Performance
Weak
Those areas which are weaknesses but of
high importance are those which should be
focussed on for immediate action.
Strong
High
Importance
Low
Opportunities analysis
Success Possibility
High
Those opportunities which have been
categorised as high / high are those should
be further investigated for action.
Low
High
Attractiveness
Low
Threats analysis
Likelyhood
High
As with the opportunities analysis those
threats which are categorised as high / high
are of key importance and processes to
manage the threat should be put in place.
Low
High
Impact
Low
TRANSFORMING CAPABILITY SUPPORT MATERIALS
LEADING VISION CREATION
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
TRANSFORMING CAPABILITY SUPPORT MATERIALS
LEADING VISION CREATION
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