INTERNAL FACTOR EVALUATION FOR SWOT
The strengths and weaknesses section of the SWOT evaluates internal factors
and functional divisions. Think of this in terms of products, people,
production/operations, management, marketing and finance.
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An answer of no to any question could indicate a potential weakness. Although the strategic
significance and implications of negative answers, of course, will vary by organization, industry,
and severity of the weakness.
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Positive or yes answers to the checklist questions suggest potential areas of strength.
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List all items that signify a strength or weakness. However, the list must be culled to only deal with
areas that relate directly to the strategic issue identified. An organization always has limited
resources, and must focus these resources on solving the strategic issues.
Your final SWOT should only have 5-6 items in each section.
Management and people:
1.
2.
3.
4.
5.
6.
7.
Do managers delegate authority well?
Is the organization's structure appropriate?
Are job descriptions and job specifications clear?
Is employee morale high?
Are employee turnover and absenteeism low?
Are organizational reward and control mechanisms effective?
Are there any problems between marketing and manufacturing, R&D, purchasing finance
accounting or legal that need attention?
8. Are there any gaps in the capabilities required to deliver the value proposition?
Marketing
1.
2.
3.
4.
5.
6.
7.
8.
Are markets segmented effectively?
Is the organization positioned well among competitors?
Has the firm's market share been increasing?
Are present channels of distribution reliable and cost-effective?
Does the firm have an effective sales organization?
What is the level of product quality and customer service?
Are the firm's products and services priced appropriately?
Does the firm have an effective promotion, advertising, and publicity strategy and budget?
Finance/Accounting
1. Where is the firm financially strong and weak as indicated by financial ratio analyses? (see
separate sheet for financial ratios)
2. Can the firm raise needed short and long term capital?
3. Does the firm have sufficient working capital?
4. What is the profitability of the various products, markets, territories and channels of distribution?
5. Cost effective analysis: operations, products, marketing.
www.cfo4hire.ca
403-801-1416
Calgary, AB
Production/Operations
1.
2.
3.
4.
5.
6.
Are suppliers of raw materials, parts, and subassemblies reliable and reasonable?
Are facilities, equipment, machinery, and offices in good condition?
Are inventory and quality control policies and procedures effective?
Are facilities, resources, and markets strategically located?
Does the firm have technological competencies?
Are there any gaps in the capabilities required to deliver the value proposition?
Research and Development
1. Does the firm have R&D facilities? Are they adequate?
2. Is communication between R&D and other organizational units effective?
3. Are present products technologically competitive?
Customers:
This is not the generic information on the customer segment. It is information on how well the company
responds to their customer’s needs; thereby creating a strength or weakness. Often this information is
gathered through customer surveys.
1. What is the opinion of the customer in regards to the organizations versus competitive product
offering:
a. Quality, features, styling, brand?
2. What area would the customer like to see improvement?
3. Do the customers see the company's prices as being in line with the value of its offer?
4. How does the customer articulate the value brought by your product offering?
www.cfo4hire.ca
403-801-1416
Calgary, AB