Saturday, December 26, 2009

Strategic Tools: SWOT Analysis

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of an organization.

Many student clubs do SWOT analysis, many fail to use it effectively. The reason, the analysis was done wrong.



SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats. Many student clubs do SWOT analysis, many fail to use it effectively. The reason, the analysis was done wrong.

The Challenges, Constraints & Promoters helps you to understand what factors are positive & negative factors. From my experience, if we start at SWOT analysis immediately we would be easily confused as which are positive (strength & opportunity) and which are negative factors (weakness & threat). My previous model would make it easier to understand the differences.

Challenges: Everything you can think of, that is in the way of your organization.
Promoters: Challenges you can overcome, or you are confident can be overcome.
Constraints: Challengers you cannot overcome or not sure how to overcome.

But first, let me explain the basics of the SWOT Analysis. There are 3 parts:
  • Arranging Promoters & Challenges into S, W, O, T
  • Analyzing & Matching Factors Appropriately in the SWOT Matrix
  • Strategy Formulation for each Matrix – SO, ST, WO, WT


Arranging Promoters & Challenges into S, W, O, T

In the previous models, you should know your promoters & challenges.

  • Promoters = Strengths (internal) + Opportunities (external).
  • Constraints = Weakness (internal) + Threat (external)
  • Internal = something within your organization, something the organization can control.
  • External = something outside your organization, something the organization cannot control.

With the explanation above, arrange the entire problem above accordingly, and put them in the matrix as the picture below.


Analysing & Matching Factors Appropriately in the SWOT Matrix



Some of the problems you list down are related. Example:

Threat: College Administration Bureaucracy makes project application takes too long to get approved
Opportunity: My father is the college’s admin’s boss.
Strategy: Go get my father to sign it during dinner time for me.


This is a lame example but I hope you get the point. There are four possibilities where Strength, Weakness, Opportunity & Threat can be related. They are:

  • Strength – Opportunity
  • Strength – Threat
  • Weakness– Opportunity
  • Weakness – Threat

You shall relate the factors according to the possibilities mentioned above.

Strategy Formulation for each Matrix – SO, ST, WO, WT



Then, try to find solutions for each ‘match’ you made. If you can (e.g.: Strategy: Go get my father to sign it during dinner time for me), put them in the corresponding boxes, like the example below.


Continue until you cannot think anymore. At the end, you should see which part of the four matrixes is most filled with solutions. So you should have an idea what you would be facing & how to solve them. The next part would be...

Picking the overall generic strategy you would want to take.

But that’s for another article. See you later.

Be.You.

2 comments:

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    ReplyDelete
  2. Thanx, apreciate the response...

    ReplyDelete

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