HOW TO CONDUCT A SWOT ANALYSIS INTRODUCTION The SWOT analysis is a structured method used to scan the Strengths, Weaknesses, Opportunities and Threats of an organisation on a certain moment. In this tool, we will explain how to make a SWOT analysis, how to interpret it and how to use it effectively within your organisation. Performing this analysis will pave the road for setting relevant, realistic and useful objectives for your organisation. Your organisation will benefit from a well-executed analysis. PRE-CONDITIONS Complexity LEVEL 1 The SWOT analysis is part of a broader picture: market research. These tools will also provide input for your SWOT analysis: Get To Know Your Target Groups Unique Selling Points of YFU, Programs and Countries How To Do Basic Market Research How To Conduct a Competitor Analysis Please see pages 5-9 for an overview of all the tools. Target group What is a SWOT analysis? Office The SWOT analysis is a simple, systematic approach to assessing the current situation of your organisation. Although it may look simple, it can have a powerful effect on your organisation. This tool is comparable to a photograph: it is static and it therefore should be updated every once in a while in order to stay useful. It can focus on a specific part of your organisation, or it can be an overall look to the organisation. For this tool, we aim at the overall look. In the SWOT analysis, we can identify four different factors: Time 0.5 hour Marketing ToolKit - Tools HOW TO CONDUCT A SWOT ANALYSIS Concretely: How to conduct the SWOT analysis? 1. Preparations It is recommended to gather as many people as possible. You could conduct the analysis on your own, but in order to get the most complete and objective results, it might be good to conduct the SWOT analysis by bringing together a group of people with different perspectives and stakes in the organisation. Office staff, volunteers, students and even host families could contribute to some good insights. You could either do it by organising an (encouraging and motivating!) brainstorming session, or by asking these stakeholders to give an answer to these questions by using a survey. You could either use a flip chart, a whiteboard, just a piece of paper or even a digital file. Please make sure to choose for a medium that fits with (the size) of the group you are working with. 2. Examples In order to make things more concrete, please have a look at the following examples. Strengths What does your organisation do well? What do other people or organisations see as your strengths? Be realistic, not modest. It might help to list the characteristics of the organisation. Some of them will probably be strengths. - Age of organisation - Staff education and experience - Financial stability - Transparency - Reputation - Strong relationships with government, partners and other stakeholders - Lessons learnt from past mistakes and re-use of best practices - Staff experience Marketing ToolKit - Tools HOW TO CONDUCT A SWOT ANALYSIS Weaknesses Ask yourself questions about what the organisation could improve or what it should avoid. Consider these questions from different perspectives. It is best to be realistic and to face your organisation’s weaknesses as soon as possible. Opportunities Opportunities are the things your organisation has no control over, but could potentially take advantage of. What opportunities are there for your organisation? Of what interesting trends are you aware? Threats What obstacles could confront your organisation? Is the economic downturn able to affect your organisation? Is changing government policy threatening your position as organisation in this society? - Lack of education and experience - Funding problems - Poor website - Low public awareness - Board inefficiency/weak management - Poor internal communication - New grants available - Influential connections - Companies looking for cause marketing opportunities - Good community response - Support from media DESTEP: - Demographical: Increase of adolescents - Economical: Economic revival - Socio-cultural: Globalisation - Technical: New online communication channels available - Ecological: Increase in ecological awareness – nature programs - Political: Supportive external and relevant thematic policies/laws - Recent bad press - Rising vendor costs - Security problems in a region - Lack of interest at the community level - Lack of access to target groups and locations DESTEP: - Demographical: Decreasing number of households that are able to host a student - Economical: Sustainability problems due to lack or elimination of funding - Socio-cultural: Xenophobia - Technical: Big part of society has no access to internet - Ecological: Increasing number of people is not willing to fly ecological unfriendly - Political: Government restrictions and lack of political will Marketing ToolKit - Tools HOW TO CONDUCT A SWOT ANALYSIS Remarks Please make sure that you put the items in each category in an order from most to least important. In order to be able to define the external factors, it might be an idea to have a look at the tool ‘How to do a basic market research’(pg 98). A strength could be a weakness at the same time. Experienced staff members are often a strength, but they may also be too comfortable, set in their ways or have a certain tunnel vision (weakness). Can you frame your loss of government funding as an opportunity for major donors to step up? 3. Your turn! The goal is to fill out the following boxes: Strengths Weaknesses Opportunities Threats Summary For assessing the current situation of your organisation, the SWOT analysis is a very usable tool. This tool will help you to have a look at internal and external factors that either have a positive or negative influence on your organisation. Concerning the external part of the analysis, it might be useful to use the DESTEP analysis. This analysis tool can help you to ensure that you do not overlook any external factors, such as government regulations or social patterns. Remember that your weaknesses and threats can be converted into strengths and opportunities by looking at them differently. Marketing ToolKit - Tools