TRANSFORMING CAPABILITY SUPPORT MATERIALSLEADING VISION CREATION

SWOT Analysis

IntroductionSWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a subjective assessment of data which is organized into a logical order that helps understanding, presentation, discussion and decision-making. It provides a framework for analysing a company's strengths and weaknesses, and the opportunities and threats it faces.

A SWOT analysis is usually represented as a grid:

Strengths What do you do well?What do others see as key strengths?What unique resources can be drawn upon?Examples:CapabilitiesCompetitive advantagesUnique selling pointsResources / assetsLocation / geographyProcesses / systemsCulture

WeaknessesWhat could be improved?What do others see as weaknesses?Examples:Capability gapsDeadlines / pressuresVulnerabilitiesCashflowReliabilityProcesses / systems

OpportunitiesWhat opportunities are available to you?What trends can be taken advantage of?How can strengths be turned into opportunities?Examples:Market developmentsCompetitors vulnerabilitiesIndustry / social trendsTechnology developmentspartnerships

ThreatsWhat trends could harm you?What is the competition doing?What threats do the weaknesses expose you to?Examples:Political effectsLegislation changesEnvironmental pressuresCompetitor activitiesSuccessionFinances

Adapted from Mind Tools, and Business Balls

Further information http://www.businessballs.com/swotanalysisfreetemplate.htm http://www.mindtools.com/pages/article/newTMC_05.htm Kotler, P., (1997), ‘Marketing Management - analysis, planning, implementation and control’, Prentice Hall International, London. Turner, S., 2002, ‘Tools for Success: A Manager Guide’, McGraw Hill Professional, Berkshire, UK

TRANSFORMING CAPABILITY SUPPORT MATERIALSLEADING VISION CREATION

SWOT Analysis

Instructions

 Key Steps: Using the SWOT analysis template grid -

Identify the key organisational strengths

Identify the key organisational weaknesses

Identify the main opportunities for the organisation

Identify the key external threats (refer to PESTLE)

Use the following analysis to undertake deeper investigation into each of the quadrants

Use the analysis to identify actions to maximise strengths, improve weaknesses, mitigate the threats and optimise the opportunities Further analysis can be undertaken on each of the quadrants:

Strengths / weakness analysis Those areas which are weaknesses but of high importance are those which should be focussed on for immediate action.

Opportunities analysis Those opportunities which have been categorised as high / high are those should be further investigated for action.

Threats analysis As with the opportunities analysis those threats which are categorised as high / high are of key importance and processes to manage the threat should be put in place.

High

Low

High Low

Likelyhood

Impact

High

Low

High Low

Success Possibility

Attractiveness

High

Low

Weak Strong

Performance

Importance

TRANSFORMING CAPABILITY SUPPORT MATERIALSLEADING VISION CREATION

SWOT Analysis

Strengths Weaknesses

Opportunities Threats