How to perform a SWOT analysis
t30
Carrying out a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis can be
an excellent way of focusing on your strong points and planning to address weaker areas.
Draw out a box and divide it into quarters - label each quarter with S.W.O.T.
By considering the different aspects of your setting, such as those below, write as many
elements as you can think of in each box.
It is highly possible that some points are relevant to the different boxes, for example,
strength can also be a threat.
One example of this could be that a member of staff that is relied upon because of his/her
abilities and is highly thought of by parents, the strength being that the group has a skilled
member of staff that creates good promotion by word of mouth, but also a weakness if that
member of staff is being heavily relied upon. Consider the implications if he/she left.
When considering each of the different areas ask questions such as:
-
Why would/wouldn’t parents choose our group?
Are there any elements that we have said, “ if only we could have this, or do
something a different way?”
-
Think about:
 financial matters
 staff / committee members and their roles / performance
 services offered by your setting
 what parents want or think about your setting
 staff development and training
 location of your setting and where parents live
Strengths
Weaknesses
Top quality staff
Good location
Flexible and adaptable staff
Experienced committee members
Good return of customers
Low local profile
Premises – no room for expansion
Committee due to change
Poor communication amongst
staff
Opportunities
Threats
New housing estate
Link with local school
Networking
Business Park
Increasing local competition
New legislation
Limited availability of qualified
staff
Good staff leaving
How to perform a SWOT analysis
t30
Finally - Once the SWOT analysis is completed, each comment or concern should be
considered and action points agreed to improve the situation or take preventative action to
make sure your setting continues to flourish.
For example:
If you have top quality staff you would want to:
– take action to ensure that potential new parents to the group are aware of the quality
of the staff in promotional materials or by word of mouth – ask current parents to
recommend to other contacts or friends.
– ensure that this does not become a threat by staff wanting to leave, so maybe
reviewing staff packages / working conditions and their happiness and well being at
work.
Think about completing a SWOT analysis at strategic points, either when
things are changing in your business environment or perhaps as part of your
annual business reviews.