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