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Sustainable Economic Development of the Sudurnes region, Iceland
SWOT Analysis and Needs Assessment
JOSE MATEOS MORENO
Ásbrú, January 2012
3
Main Stages of OP Preparation
Organisation of OP process
Implementing Arrangements
Negotiations with EU
SWOT Analysis
Strategic Goals and Priorities
Budget Allocation and Impacts
Ex-ante Evaluation
1 to 2 years
4
SWOT Analysis
Opportunities
Strengths Weaknesses
Threats
Internal
& static
External
& dynamic
5
SWOT Rules
• Formulate in terms relative to the current situation
• Keep it simple and realistic
• It is subjective: which point of view?
• Avoid:
– Intention or wish as opportunity
– Objective as threat or weakness
– Internal versus external
6
Driving Factors for Competitiveness
• Talent – the creativity, flexibility and skills with which the workforce is endowed
• Innovation – the ability of the place to keep reinventing itself and to respond effectively to new challenges
• Connectivity – how open and ‘plugged in’ the place is
• Entrepreneurship – how encouraging the environment is for harnessing the place’s potential for profitable enterprise
8
SWOT Elements (OP COMP.)• Description of the Productive sector: Socio-Economic
Analysis– Macro-economic situation (GDP, inflation, labour market,
Openness of the economy, etc.)– Regional Structure of Production– Description of Enterprises– The “business environment”– Development Potential
• Description of Industry and Enterprise trends – Benchmarking (Value added index, investment in R&D,
etc.)– Trend analysis (development od SMEs, energy efficiency,
needs of technology, etc)
9
Needs Assessment (1)
• Based on SWOT– Establish future socio-economic scenarios– Estimate future needs or competitiveness
problems– Translate needs forecast in physical and
financial needs• Identification of future bottlenecks (e.g. lack of
investment in R&D)• Identification possible solutions
10
Needs Assessment (2)
• Tools– Desk research– Literature study (e.g. relationship between
regional competitiveness and information society)
– (Baseline) surveys (e.g. SMEs creation monitoring, industry reports)
– Forecasts of Industry development
11
Practical Exercise: work in teams.
• Design a SWOT Analysis for Sudurnes Region.
12
Practical Exercise: work in teams.
STRENGTHS– International Airport– Natural Resources (Water, Air, Geothermal)– Plenty of Land– Young Population– Fish Industry– Good Infrastructure
13
Practical Exercise: work in teams.
WEAKNESSES– Educational level of work force low. Lack of
opportunities for educated work force.– Lack of culture for innovation and initiative
(entrepreneurship).– Need for a better connection with capital
area.– Too small & too many local authorities– Distance to the capital. Competition for
resources or projects.
14
Practical Exercise: work in teams.
OPPORTUNITIES– International airport Development– Better use of natural resources– Flexible labour market– Close location to capital area.– Cooperation with other regions.– Changes in national law (contribution to
investment, tax reductions).– Opening of north pole and Artic areas.– Tourism development.– New demand for use of empty buildings.
15
Practical Exercise: work in teams.THREATS– Lack of coordination and coherence.
Loosing opportunities.– Unemployment could Increase.– Loosing employment opportunities because
of low skills level of population.– Weak social capital. Departure of Nato
base.– “Lost generation” (16 to 20 years old) of
unemployed people.– Changes in Fisheries Policy.– Proximity to capital area.– Families & Financial crisis