SWOT analysis

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies.[1][2] The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an advantage over others Weaknesses: are characteristics that place the team at a disadvantage relative to others Opportunities: elements that the project could exploit to its advantage Threats: elements in the environment that could cause trouble for the business or project

Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated. Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage.[3]

Contents

1 Matching and converting 2 Internal and external factors 3 Use 4 Criticism 5 SWOT - landscape analysis 6 Corporate planning o 6.1 Marketing 7 See also 8 References 9 External links

Matching and converting

One way of utilizing SWOT is matching and converting. Matching is used to find competitive advantage by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. An example of conversion strategy is to find new markets. If the threats or weaknesses cannot be converted a company should try to minimize or avoid them.[4]

Internal and external factors

SWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective. The factors come from within a company's unique value chain.[citation needed] SWOT analysis groups key pieces of information into two main categories:
1. internal factors the strengths and weaknesses internal to the organization 2. external factors the opportunities and threats presented by the environment external to the organization

Analysis may view the internal factors as strengths or as weaknesses depending upon their effect on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses (distractions, competition) for another objective. The factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or in competitive position. The results are often presented in the form of a matrix. SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade its users to compile lists rather than to think about actual important factors in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats. It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of individual SWOTs will be revealed by the value of the strategies they generate. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important.

Use
The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey.

Criticism
Some findings from Menon et al. (1999) [5] and Hill and Westbrook (1997) [6] have shown that SWOT may harm performance. Other complementary analyses have been proposed, such as the Growth-share matrix.

SWOT - landscape analysis

The SWOT-landscape systematically deploys the relationships between overall objective and underlying SWOT-factors and provides an interactive, query-able 3D landscape.

The SWOT-landscape grabs different managerial situations by visualizing and foreseeing the dynamic performance of comparable objects according to findings by Brendan Kitts, Leif Edvinsson and Tord Beding (2000).[7] Changes in relative performance are continually identified. Projects (or other units of measurements) that could be potential risk or opportunity objects are highlighted. SWOT-landscape also indicates which underlying strength/weakness factors that have had or likely will have highest influence in the context of value in use (for ex. capital value fluctuations).

Corporate planning
As part of the development of strategies and plans to enable the organization to achieve its objectives, that organization will use a systematic/rigorous process known as corporate planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business and environmental factors.[8]

Set objectives defining what the organization is going to do Environmental scanning o Internal appraisals of the organization's SWOT, this needs to include an assessment of the present situation as well as a portfolio of products/services and an analysis of the product/service life cycle

Analysis of existing strategies, this should determine relevance from the results of an internal/external appraisal. This may include gap analysis which will look at environmental factors Strategic Issues defined key factors in the development of a corporate plan which needs to be addressed by the organization Develop new/revised strategies revised analysis of strategic issues may mean the objectives need to change Establish critical success factors the achievement of objectives and strategy implementation Preparation of operational, resource, projects plans for strategy implementation Monitoring results mapping against plans, taking corrective action which may mean amending objectives/strategies.[9]

Marketing Main article: Marketing management

In many competitor analyses, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors. Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. Accordingly, management often conducts market research (alternately marketing research) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include:

Qualitative marketing research, such as focus groups Quantitative marketing research, such as statistical surveys Experimental techniques such as test markets Observational techniques such as ethnographic (on-site) observation Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis.

Below is an example SWOT analysis of a market position of a small management consultancy with specialism in HRM.[9]
Strengths Reputation in marketplace Weaknesses Opportunities Threats

Shortage of consultants Well established position Large consultancies at operating level rather with a well defined operating at a minor than partner level market niche level Identified market for consultancy in areas Other small consultancies looking to

Expertise at partner level Unable to deal with multi-disciplinary

in HRM consultancy

assignments because of size or lack of ability

other than HRM

invade the marketplace

See also

Benchmarking Strategic planning Enterprise planning systems Six Forces Model VRIO Porter's Four Corners Model Programme Evaluation and Review Technique

References
1. 2. 3. 4. 5. ^ Humphrey, Albert (December 2005). "SWOT Analysis for Management Consulting". SRI Alumni Newsletter (SRI International). ^ "Albert Humphrey The "Father" of TAM". TAM UK. Retrieved 2012-06-03. ^ "Object Oriented and Multi-Scale Image Analysis: Strengths, Weaknesses, Opportunities and Threats - A Review". Journal of Computer Science 4 (9): 706712. Jan 2008. ^ See for instance: Mehta, S. (2000) Marketing Strategy ^ Menon, A. et al. (1999). "Antecedents and Consequences of Marketing Strategy Making". Journal of Marketing (American Marketing Association) 63 (2): 1840. doi:10.2307/1251943. JSTOR 1251943. ^ Hill, T. & R. Westbrook (1997). "SWOT Analysis: Its Time for a Product Recall". Long Range Planning 30 (1): 4652. doi:10.1016/S0024-6301(96)00095-7. ^ Brendan Kitts, Leif Edvinsson and Tord Beding (2000) Crystallizing knowledge of historical company performance into interactive, query-able 3D Landscapes http://de.scientificcommons.org/534302 ^ Armstrong. M. A handbook of Human Resource Management Practice (10th edition) 2006, Kogan Page , London ISBN 0-7494-4631-5 ^ a b Armstrong.M Management Processes and Functions, 1996, London CIPD ISBN 085292-438-0

6. 7.

8. 9.

SWOT may refer to:

Surface Water Ocean Topography Mission, a proposed NASA mission to make the first global survey of Earths surface water SWOT analysis, a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture, industry or marketing evaluation SWOT (manga), a Japanese media franchise

SWOT Analysis

Discover New Opportunities. Manage and Eliminate Threats.

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face. Used in a business context, a SWOT Analysis helps you carve a sustainable niche in your market. Used in a personal context, it helps you develop your career in a way that takes best advantage of your talents, abilities and opportunities. (Click here for Business SWOT Analysis, and here for Personal SWOT Analysis.)

Business SWOT Analysis

What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares. More than this, by looking at yourself and your competitors using the SWOT framework, you can start to craft a strategy that helps you distinguish yourself from your competitors, so that you can compete successfully in your market.

How to Use SWOT Analysis

Originated by Albert S Humphrey in the 1960s, SWOT Analysis is as useful now as it was then. You can use it in two ways - as a simple icebreaker helping people get together to "kick off" strategy formulation, or in a more sophisticated way as a serious strategy tool.

Tip: Strengths and weaknesses are often internal to your organization, while opportunities and threats generally relate to external factors. For this reason the SWOT Analysis is sometimes called Internal-External Analysis and the SWOT Matrix is sometimes called an IE Matrix. To help you to carry out a SWOT Analysis, download and print off our free worksheet, and write down answers to the following questions.
Strengths:

What advantages does your organization have? What do you do better than anyone else? What unique or lowest-cost resources can you draw upon that others can't? What do people in your market see as your strengths? What factors mean that you "get the sale"? What is your organization's Unique Selling Proposition (USP)?

Consider your strengths from both an internal perspective, and from the point of view of your customers and people in your market. Also, if you're having any difficulty identifying strengths, try writing down a list of your organization's characteristics. Some of these will hopefully be strengths! When looking at your strengths, think about them in relation to your competitors. For example, if all of your competitors provide high quality products, then a high quality production process is not a strength in your organization's market, it's a necessity.
Weaknesses:

What could you improve? What should you avoid? What are people in your market likely to see as weaknesses? What factors lose you sales?

Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you don't see? Are your competitors doing any better than you? It's best to be realistic now, and face any unpleasant truths as soon as possible.
Opportunities:

What good opportunities can you spot? What interesting trends are you aware of?

Useful opportunities can come from such things as:

Changes in technology and markets on both a broad and narrow scale. Changes in government policy related to your field. Changes in social patterns, population profiles, lifestyle changes, and so on. Local events.

Tip: A useful approach when looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them.

Threats

What obstacles do you face?

What are your competitors doing? Are quality standards or specifications for your job, products or services changing? Is changing technology threatening your position? Do you have bad debt or cash-flow problems? Could any of your weaknesses seriously threaten your business?

Tip: When looking at opportunities and threats, PEST Analysis can help to ensure that you don't overlook external factors, such as new government regulations, or technological changes in your industry.

Further SWOT Tips

Mind Tools on Strategy:

SWOT Analysis TOWS Analysis PEST Analysis Core Competence Analysis Value Chain Analysis Porter's Five Forces Porter's Generic Strategies Bowman's Strategy Clock Scenario Analysis

If you're using SWOT Analysis as a serious tool (rather than as a casual "warm up" for strategy formulation), make sure you're rigorous in the way you apply it:

Only accept precise, verifiable statements ("Cost advantage of US$10/ton in sourcing raw material x", rather than "Good value for money"). Ruthlessly prune long lists of factors, and prioritize them, so that you spend your time thinking about the most significant factors. Make sure that options generated are carried through to later stages in the strategy formation process. Apply it at the right level - for example, you might need to apply SWOT Analysis at product or product-line level, rather than at the much vaguer whole company level. Use it in conjunction with other strategy tools (for example, USP Analysis and Core Competence Analysis) so that you get a comprehensive picture of the situation you're dealing with.

Note: You could also consider using the TOWS Matrix. This is quite similar to SWOT in that it also

focuses on the same four elements of Strengths, Weaknesses, Opportunities and Threats. But TOWS can be a helpful alternative because it emphasizes the external environment, while SWOT focuses on the internal environment.

Example SWOT Analysis

A start-up small consultancy business might draw up the following SWOT Analysis:
Strengths:

We are able to respond very quickly as we have no red tape, and no need for higher management approval. We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers. Our lead consultant has strong reputation in the market. We can change direction quickly if we find that our marketing is not working. We have low overheads, so we can offer good value to customers.

Weaknesses:

Our company has little market presence or reputation. We have a small staff, with a shallow skills base in many areas. We are vulnerable to vital staff being sick, and leaving. Our cash flow will be unreliable in the early stages.

Opportunities:

Our business sector is expanding, with many future opportunities for success. Local government wants to encourage local businesses. Our competitors may be slow to adopt new technologies.

Threats:

Developments in technology may change this market beyond our ability to adapt. A small change in the focus of a large competitor might wipe out any market position we achieve.

As a result of their SWOT Analysis, the consultancy may decide to specialize in rapid response, good value services to local businesses and local government. Marketing would be in selected local publications to get the greatest possible market presence for a set advertising budget, and the consultancy should keep up-to-date with changes in technology where possible.

Key Points
SWOT Analysis is a simple but useful framework for analyzing your organization's strengths and weaknesses, and the opportunities and threats that you face. It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you. SWOT Analysis can be used to "kick off" strategy formulation, or in a more sophisticated way as a serious strategy tool. You can also use it to get an understanding of your competitors, which can give you the insights you need to craft a coherent and successful competitive position. When carrying out your SWOT Analysis, be realistic and rigorous. Apply it at the right level, and supplement it with other option-generation tools where appropriate.
What is a SWOT analysis and why should you use one? When do you use SWOT? What are the elements of a SWOT analysis? How do you create a SWOT analysis? How do you use your SWOT analysis?

Opposition is an inevitable part of change and one that can significantly impact your community organizing. However, if you know how to take stock of the opposition inside and outside of your effort or group, you are more likely to plan and act effectively. That's where SWOT analysis comes in. SWOT can help you handle both ordinary and unusual situations in your community health or development initiative, by giving you a tool to explore both internal and external factors that may influence your work.

What is a SWOT analysis and why should you use one?

The name says it: Strength, Weakness, Opportunity, Threat. A SWOT analysis guides you to identify the positives and negatives inside your organization (S-W) and outside of it, in the external environment (O-T). Developing a full awareness of your situation can help with both strategic planning and decision-making. The SWOT method (which is sometimes called TOWS) was originally developed for business and industry, but it is equally useful in the work of community health and development, education, and even personal growth.

SWOT is not the only assessment technique you can use, but is one with a long track record of effectiveness. Compare it with other tools found in the Community Tool Box (especially Chapter 3) to determine if this is the right approach for your situation. The strengths of this method are its simplicity and application to a variety of levels of operation.

When do you use SWOT?

A SWOT analysis can offer helpful perspectives at any stage of an effort. You might use it to:

Explore possibilities for new efforts or solutions to problems. Make decisions about the best path for your initiative. Identifying your opportunities for success in context of threats to success can clarify directions and choices. Determine where change is possible. If you are at a juncture or turning point, an inventory of your strengths and weaknesses can reveal priorities as well as possibilities. Adjust and refine plans mid-course. A new opportunity might open wider avenues, while a new threat could close a path that once existed.

SWOT also offers a simple way of communicating about your initiative or program and an excellent way to organize information you've gathered from studies or surveys.

What are the elements of a SWOT analysis?

A SWOT analysis focuses on the four elements of the acronym, but the graphic format you use varies depending on the depth and complexity of your effort. Remember that the purpose of performing a SWOT is to reveal positive forces that work together and potential problems that need to be addressed or at least recognized. Before you conduct a SWOT session, decide what format or layout you will use to communicate these issues most clearly for you. We will discuss the process of creating the analysis below, but first here are a few sample layouts-ideas of what your SWOT analysis can look like. You can list internal and external opposites side by side. Ask participants to answer these simple questions: what are the strengths and weaknesses of your group, community, or effort, and what are the opportunities and threats facing it?

INTERNAL

EXTERNAL

Strengths

Weaknesses

Opportunities

Threats

Or if a looser structure helps you brainstorm, you can group positives and negatives to think broadly about your organization and its external environment.

Positives

Negatives

strengths assets resources opportunities prospects

weaknesses limitations restrictions threats challenges

And here's a third option for structuring your SWOT analysis that might be appropriate for a large initiative that requires detailed planning or many alternatives. This more elaborate "TOWS Matrix" is adapted from Fred David's Strategic Management text (see "Print Resources"). Here a working table guides you to identify strategies by matching items in each quadrant.

STRENGTHS

WEAKNESSES

1. 2. 3. 4.
OPPORTUNITIES Opportunity-Strength (OS) Strategies

1. 2. 3. 4.
Opportunity-Weakness (OW) Strategies

1.

2. 3. 4. 1. 2.
THREATS

Use strengths to take advantage of opportunities

Overcome weaknesses by taking advantage of opportunities 1. 2.

Threat-Strength (TS) Strategies

Threat-Weakness (TW) Strategies

1. 2. 3. 4.

Use strengths to avoid threats 1. 2.

Minimize weaknesses and avoid threats 1. 2.

David gives an example for Campbell Soup Company that stresses financial goals, but it also illustrates how you can pair the items within a SWOT grid to develop strategies. (This version of the chart is abbreviated.)

STRENGTHS 1. Current profit ratio increased 2. Employee morale high 3. Market share has increased OPPORTUNITIES 1. Western European unification 2. Rising health consciousness in selecting foods 3. Demand for soups increasing annually THREATS 1. Low value of dollar 2. Tin cans are not Opportunity-Strength (OS) Strategies

WEAKNESSES 1. Legal suits not resolved 2. Plant capacity has fallen 3. Lack of strategic management system

Opportunity-Weakness (OW) Strategies

Acquire food company Develop new Pepperidge in Europe (S1, S3, O1) Farm products (W1, O2, Develop new healthy O3) soups (S2, O2) Threat-Strength (TS) Strategies Develop new Threat-Weakness (TW) Strategies Close unprofitable

biodegradable

biodegradable soup containers (S1, T2)

European operations (W3, T1)

This example also illustrates how threats can become opportunities (and vice versa). The limitation of tin cans (which aren't biodegradable) creates an opportunity for leadership in developing biodegradable containers. See "Tools and Checklists" for a basic SWOT form that you can use to prompt analysis. Whatever format you use, though, don't be surprised if your strengths and weaknesses don't precisely match up to your opportunities and threats. You might need to refine, or you might need to simply look at the facts longer, or from a different angle. Your chart, list or table will certainly reveal patterns.
Listing Your Internal Factors: Strengths and Weaknesses (S, W)

Internal factors include your resources and experiences. General areas to consider are:

Human resources - staff, volunteers, board members, target population Physical resources - your location, building, equipment (Does your building have a prime location? Does it need renovations?) Financial - grants, funding agencies, other sources of income Activities and processes - programs you run, systems you employ Past experiences - building blocks for learning and success, your reputation in the community

Don't be too modest when listing your strengths. If you're having difficulty naming them, start by simply listing your characteristics (e.g., we're small, we're connected to the neighborhood). Some of these will probably be strengths. Although the strengths and weakness of your organization are your internal qualities, don't overlook the perspective of people outside your group. Identify strengths and weaknesses from both your own point of view and that of others-those you serve or deal with. Do others see problems--or assets--that you don't? How do you get information about how outsiders perceive your strengths and weaknesses? You may know already if you've listened to those you serve. If not, this might be the time to gather that type of information. See "Related Sections" for ideas on conducting focus groups, user surveys, listening sessions, and meetings.
Listing External Factors: Opportunities and Threats (O, T)

Cast a wide net for the external part of the assessment. No organization, group, program, or neighborhood is immune to outside events and forces. Consider your connectedness, for better and worse, as you compile this part of your SWOT list.

Forces and facts that your group does not control include:

Future trends - in your field (Is research finding new treatments?) or the culture (Do current movies highlight your cause?) The economy - local, national, or international Funding sources - foundations, donors, legislatures Demographics - changes in the age, race, gender, culture of those you serve or in your area The physical environment (Is your building in a growing part of town? Is the bus company cutting routes?) Legislation (Do new federal requirements make your job harder...or easier?) Local, national or international events

As a tool designed for businesses, the major threat to success for most SWOT practitioners is "the competition." Programs to improve the health and well-being of individuals and communities might not have competitors in the market sense, but there could be overlap in services with other agencies that you need to consider. Or perhaps preferences for funding aren't favoring you you're interested in health promotions, but treatment is getting all the resources. So it can help to think of the "competition" in a broad sense as you consider threats to your effort. Perhaps the competition for your target population's time and attention exists in a competing unhealthy habit, such as smoking, or in a societal force like tobacco advertising, or even in the lure of couch and TV, which occupy time that might be given to exercise.
How do you create a SWOT analysis? Who develops the SWOT?

The most common users of a SWOT analysis are team members and project managers who are responsible for decision-making and strategic planning. But don't overlook anyone in the creation stage! An individual or small group can develop a SWOT analysis, but it will be more effective if you take advantage of many stakeholders. Each person or group offers a different perspective on the strengths and weaknesses of your program and has different experiences of both. Likewise, one staff member, or volunteer or stakeholder may have information about an opportunity or threat that is essential to understanding your position and determining your future.
When and where do you develop a SWOT analysis?

A SWOT analysis is often created during a retreat or planning session that allows several hours for both brainstorming and more structured analysis. The best results come when participants are encouraged to have an open attitude about possibilities. While you might "SWOT" in conjunction with an informational or business session, the tone when creating a SWOT analysis is usually collaborative and inclusive.

When creating the analysis, all people involved are asked to pool their individual and shared knowledge and experiences. The more relaxed, friendly and constructive the setting and environment, the more truthful, comprehensive, insightful and useful your analysis will be.
How do you develop a SWOT analysis?

Here's one way to proceed in a gathering to produce your analysis. (For more ideas on meeting strategies, see Chapter 3, Section 3: Conducting Public Forums and Listening Sessions and Section 6: Conducting Focus Groups and Chapter 12, Section 7: Organizing a Retreat.) 1. Designate a leader or group facilitator who has good listening and group process skills, and who can keep things moving and on track. 2. Designate a recorder to back up the leader if your group is large. Use newsprint on a flip chart or a large board to record the analysis and discussion points. You can record later in a more polished fashion to share with stakeholders and to update. 3. Introduce the SWOT method and its purpose in your organization. This can be as simple as asking, "Where are we, where can we go?" If you have time, you could run through a quick example based on a shared experience or well-known public issue (even the new TV season). 4. Depending on the nature of your group and the time available, let all participants introduce themselves. Then divide your stakeholders into smaller groups. If your retreat or meeting draws several groups of stakeholders together, make sure you mix the small groups to get a range of perspectives, and give them a chance to introduce themselves. The size of these depends on the size of your entire group breakout groups can range from three to ten. If the size gets much larger, some members may not participate. 5. Have each group designate a recorder, and provide each with newsprint or dry -erase board. Direct them to create a SWOT analysis in the format you choose-a chart, columns, a matrix, or even a page for each quality. a. Give the groups 20-30 minutes to brainstorm and fill out their own strengths, weakness, opportunities and threats chart for your program, initiative or effort. Encourage them not to rule out any ideas at this stage, or the next. b. You can provide these tips for listing:

As you list, keep in mind that the way to have a good idea is to have lots of ideas. Refinement can come later. In this way, the SWOT analysis also supports valuable discussion within your group or organization as you honestly assess. In the beginning, though, it helps to generate lots of comments about your organization and your program, and even to put them in multiple categories if that provokes thought. In the end, it is best to limit your lists to 10 or fewer points and to be specific so the analysis can be truly helpful.

6. Reconvene the group at the agreed-upon time to share results. Gather information from the groups, recording on the flip-chart or board. Collect and organize the differing groups' ideas and perceptions. Decide before hand how you will gather the input. There are at least two ways to do so: a. Proceed in S-W-O-T order, recording strengths first, weaknesses second, etc. b. Or you can begin by calling for the top priorities in each category -the strongest strength, most dangerous weakness, biggest opportunity, worst threat--and continue to work across each category. There are also at least two ways to take information from the groups. a. Ask one group at a time to report ("Group A, what do you see as strengths?") You can vary which group begins the report so a certain group isn't always left "bringing up the end" and repeating points made by others. ("Group B, let's start with you for weaknesses.") b. Or, you can open the floor to all groups ("What strengths have you noted?") for each category until all have contributed what they think is needed. Whichever way you proceed, the facilitator or recorder should keep writing until the input from all groups is recorded. Note repeated items across groups for "weighting" of important possibilities. You might want to discuss some of the items as they come up. In fact, cross connections between categories-"This strength plays into that opportunity"-is what you're pursuing, so a good facilitator will tease out those insights as they arise. At the same time, you want to keep the process moving until all the chart is complete, so facilitator and recorder should work together to begin a fifth column or new page-one for working ideas. Encourage the participants to also make notes of ideas and insights as you build so the drawing together process will continue to be creative and collaborative. 7. Discuss and record the results. Depending on your time frame and purpose:

Come to some consensus about the most important items in each category Relate the analysis to your vision, mission, and goals Translate the analysis to action plans and strategies.

8. If appropriate, prepare a written summary of the SWOT analysis to give or e-mail to participants for continued use in planning and implementing your effort.

How do you use your SWOT analysis?

In some ways a SWOT analysis pushes you to think "inside the box" by asking you to categorize your effort in such simple opposing terms. But the purpose of this information gathering is definitely to help you move outside the box of any constraints or limitations that may have hindered you before. Knowledge is indeed power, and knowing what the positives and negatives of your program are puts you in a more powerful position for action. While a SWOT analysis is not in itself action, it can be a "support team" to help you:

Identify the issues or problems you intend to change Set or reaffirm goals Create an action plan

The "Example" included with this section illustrates how SWOT can help discover areas for action. And as you consider your analysis, remember the half-full glass. Be open to the possibilities that exist within a weakness or threat. Likewise, recognize that an opportunity can become a threat if everyone else sees the opportunity and plans to take advantage of it as well, thereby increasing your competition. Finally, during your assessment and planning, you might keep an image in mind to help you make the most of a SWOT analysis: Look for a "stretch," not just a "fit." As Radha Balamuralikrishna and John C. Dugger of Iowa State University point out, SWOT usually reflects your current position or situation. Therefore one drawback is that it might not encourage openness to new possibilities. You can use SWOT to justify a course that has already been decided upon, but if your goal is to grow or improve, you will want to use it differently. (See "Internet Resources" below for this article.)
In Summary

A realistic recognition of the weaknesses and threats that exist for your effort is the first step to countering them with a robust and creative set of strengths and opportunities. A SWOT analysis identifies your strengths, weaknesses, opportunities and threats to assist you in making strategic plans and decisions. SWOT is a simple yet comprehensive way of assessing the positive and negative forces within and without your organization, so you can be better prepared to act effectively. The more stakeholders you involve in preparing the SWOT, the more valuable your analysis will be. Whatever courses of action you decide on, the four-cornered SWOT analysis prompts you to move in a balanced way throughout your program. It reminds you to:

build on your strengths

minimize your weaknesses seize opportunities counteract threats

A SWOT analysis will be most helpful if you use it to support the vision, mission, and objectives you have already defined. The SWOT will at least provide perspective, and at best will reveal connections and areas for action.
We encourage the reproduction of this material, but ask that you credit the Community Tool Box: http://ctb.ku.edu

Resources Print David, Fred R. (1993). Strategic Management, 4th Ed. New York: Macmillan Publishing Company. (Dr. David also maintains a strategic planning web site, Checkmate Plan, and is available by e-mail at strategy29@aol.com.) Jones, Bernie. (1990). Neighborhood Planning: A Guide for Citizens and Planners. Chicago and Washington, D.C.: Planners Press, American Planning Association.

Internet SWOT Analysis: A Management Tool for Initiating New Programs in Vocational Schools Radha Balamuralikrishna and John C. Dugger describe use of a SWOT analysis to initiate new programs in vocational schools; article appeared in Journal of Vocational and Technical Education. Quality Guide: SWOT Analysis Helpful guide from Management Sciences for Health and United Nations Children's Fund. Mind Tools: SWOT Analysis A quick overview from Mindtools Books.