Question

Q1(a). Select an organization and, using the SWOT Framework, perform an internal analysis on the organization.

Q1(b). Based on your internal organizational analysis, in which areas does the organization have a great competitive advantage? Why?

Q1(c). Which areas can be classified as weak areas for the organization? How could the organization improve?

Answer 1

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SWOT Analysis

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This article explains the SWOT Analysis in a practical way, including an example and template. After reading you will understand the basics of this powerful strategy tool.

What is a SWOT Analysis?

SWOT Analysis, also known as the SWOT matrix, is an acronym for:

Strengths: positive characteristics that give an advantage in it’s being;
Weaknesses: critical characteristics that give an disadvantage in it’s being;
Opportunities: a set of circumstances that makes it possible to do something in advantage;
Threats: a set of circumstances that could have an negative influence on the desired goal.

It is a strategy method that can be used to evaluate these focus areas involved in a project or organization for strategic planning.

The SWOT Analysis is also an type of analysis that can be used on evaluating the Marketing mix: 4P’s (Product, Price, Place and Promotion), an organization or even a person or team. It is about the management objectives of the organization or project and the identification of internal and external factors that are favourable and/or unfavourable to achieving the external objectives.

[ToolsHero.com]
Home  Strategy

SWOT Analysis

[SWOT analysis - ToolsHero]
DOWNLOAD FREE TEMPLATE

This article explains the SWOT Analysis in a practical way, including an example and template. After reading you will understand the basics of this powerful strategy tool.

What is a SWOT Analysis?

SWOT Analysis, also known as the SWOT matrix, is an acronym for:

Strengths: positive characteristics that give an advantage in it’s being;
Weaknesses: critical characteristics that give an disadvantage in it’s being;
Opportunities: a set of circumstances that makes it possible to do something in advantage;
Threats: a set of circumstances that could have an negative influence on the desired goal.

It is a strategy method that can be used to evaluate these focus areas involved in a project or organization for strategic planning.

The SWOT Analysis is also an type of analysis that can be used on evaluating the Marketing mix: 4P’s (Product, Price, Place and Promotion), an organization or even a person or team. It is about the management objectives of the organization or project and the identification of internal and external factors that are favourable and/or unfavourable to achieving the external objectives.

The first fundamentals of the SWOT Analysis was developed by Edmund P. Learned et al. (1969). This method was further developed by Albert Humphrey in the 1970s, and was based on the research of data from the Fortune 500 companies in the United States. In order to create a SWOT Analysis, users must ask and get answers, to generate meaningful information to fill in the main four focus areas.

Internal and external factors

This powerful strategy tool identifies the internal and external factors. The internal factors are the strengths and weakness of the evaluation. Some examples of internal factors are financial resources, company’s location, employees, software systems, legal elements like patents and copyrights and business processes. A useful management tool that help you to identify the internal factors is the 7S Framework by McKinsey, a powerful organization analysis tool. The external factors are the opportunities and threats, mostly environmental. Examples of external factors are market, demographic and economic trends, relationships with suppliers and business partners and regulations.

Two useful management tools that we can recommend are the PEST Analysis and DESTEP Analysis. Both are great to provide an inside on the external factors. The general results are often presented in a SWOT Matrix.

Tip:
The SWOT Matrix can give a good overall view. Take note that there are pitfalls by using this way of presenting. Lists and bullets of key findings can have a deeper agenda.

Also if the key findings are not well prioritized, people tent to draw their own conclusions on priority.

Business SWOT template

The drawing up of a SWOT Analysis always starts with a desired final situation or desirable objectives. Partly because this, it could therefore be an excellent tool that forms part of the strategic planning. The preparation of a strategic planning, including a swot analysis, requires a lot of research and can be costly. Below you will find a short explanation of what is meant by the four elements:

[SWOT Analysis Model example - ToolsHero]

Strengths

These are the strengths of a project or organization that can contribute to achieving the intended objectives. To determine what they are, the following questions could be asked:

What advantages do you offer your customers?
What do you do better than your competitors?
Why do customers choose you over your competitors?
What are our Unique Selling Points (USPs)?
Which factors have a significant influence on the buying behaviour of your customers?

When formulating the strengths, it is important to approach these from an internal perspective as well as from the perspectives of the customer and the market. It is necessary to remain realistic in order to prevent that the organization or the project from being positioned too highly with respect to the market and the competition. For example, if your competitor delivers a high quality product to the market, good ingredients and sound workmanship are of the utmost importance.

Weakness

These are weaknesses of a project or organization that may have a negative effect on achieving the intended objectives.

To determine what these weaknesses are, the following questions could be asked:

What could be improved by the organization?
What should especially be avoided within the organization or project?
What are customers likely to see as our weaknesses?
What factors make us lose customers or market share?

These are difficult questions to answer and the answers may be quite confronting. Have especially other and external people assess your weaknesses so that you can work on these.