SWOT Analysis

Topics: Strategic management, SWOT analysis, Management Pages: 7 (414 words) Published: February 10, 2015
SWOT Analysis




The SWOT analysis is derived from
the internal and external
assessments.
It makes use of a matrix to plot the
organization’s strengths (S),
weaknesses (W) as well as the
opportunities (O) and threats (T) in
the external environment:

Strengths/Weakness: Internal to the organization











Distinctive competence
Performance vis-à-vis mandate
Skills level/experience of members
Effectiveness and clarity of present strategies
Management systems, processes and procedures
to carry out the mandate
Adequacy of financial resources
Fit among goals, strategies, organizational
structure, systems, procedures and
skills/experience of people in the organization
Existing network and linkages that help
organization carry out the mandate

Opportunities/Threats: External to the Organization








Presence of “competitors” or allies (other
groups that deliver the same
product/service; interest groups that may
oppose the mission/goals)
Government policies
Demographic/climatic changes
Public image of the organization and its
programs
Values, perceptions and practices of
beneficiaries and program partners

Applying SWOT


The objective of SWOT is to not to
simply list down strengths,
weaknesses, opportunities and
threats, but to zero in on those that
directly relate to strategic choices
that the organization will have to
make.

Applying SWOT



How do we choose S, W, O & T factors?
Critical factors may be singled out
according to the following criteria:
• relevance – how the factor relates to the
organization’s reason for being
• magnitude – quantitative degree of influence it
has over a given situation
• importance – qualitative degree of influence it
has over a given organizational situation
• urgency – need for prompt response to ward off
dire consequences for the organization

Applying SWOT


Once the SWOT analysis has been
completed, the organization should
determine which of the following scenarios
closely describes its situation.
• Strengths-Opportunities (SO) – how can
strengths be used to maximize opportunities?
• Strengths-Threats (ST) – how can strengths be
used to minimize threats?
• Weaknesses-Opportunities (W-O) – how can
weaknesses be overcome to maximize
opportunities?
• Weaknesses-Threats (W-T) – how can
weaknesses be overcome to counteract
threats?

SWOT MATRIX
External
Assessment

Opportunities
1.
2.

Threats
1.
2.

Internal
Environment
Assessment
Strengths
1.
2.

SO Strategies
(Growth Strategies)
1.Expand area/
sector/industry
coverage
2.Intensify existing
operations
3.Integrate backward
or forward
4.Acquire or take
over

Weaknesses
1.
2.

WO Strategies
(Niching Strategies)
1.Diversify into other
services or products
2.Consolidate
3.Provide
contingency
mechanisms

ST Strategies
(Diversifying Strategies)

1.Linking or
networking
2.Subcontracting
3.Anchor projects

WT Strategies
(Slowing Down
Strategies)
1.Retrench
2.Merge
3.Withdraw/close
shop

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