SWOT Analysis

SWOTINTRODUCTION(SWOT) MatrixStrengths-Weaknesses- Opportunities- Threats

The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

Haberberg (2000) Igor Ansoff (1987)Weihrich (1982)Dealtry (1992) Wheelan and Hunger (1998)

SWOTINTRODUCTION

The SWOT Matrix is an important matching tool that helps managers develop four types of strategies.

A SWOT analysis generates information that is helpful in matching an organization or groups goals, programs, and capacities to the social environment in which it operates.

It is an instrument within strategic planning.

When combined with dialogue it is a participatory process

SWOT AnalysisHARMFULTo achieving the objectivesHELPFULTo achieving the objectivesINTERNAL FACTORSEXTERNAL FACTORSSWOTAnalysis

ICEDRIPS ANALYSISPRIMEFACT CHECKLISTSWOTAnalysis

SWOTFOUR TYPES OF STRATEGIES

SO (STRENGTHS OPPORTUNITIES)

WO (WEAKNESSES OPPORTUNITIES)

ST (STRENGTHS THREATS)

WT (WEAKNESSES - THREATS)

EIGHT STEPS IN SWOT MATRIX:List the firms key external opportunitiesList the firms key external threats.List the firms key internal strengths.List the firms key internal weaknesses.Match internal strengths with external opportunities and record the resultant SO Strategies.Match internal weaknesses with external opportunities, and record the resultant WO Strategies.Match internal strengths with external threats, and record the resultant ST Strategies.Match internal weaknesses with external threats, and record the resultant WT Strategies.

SWOTAPPLICATION IN RESEARCH

A SWOT analysis may be incorporated into the strategic planning model.

Strategic Planning has been the subject of much research.

SWOTOTHER USES OF SWOT

SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined.

SWOT analysis may also be used in pre-crisis planning and preventivecrisis management.

SWOT analysis may also be used in creating a recommendation during aviability study/survey.

SWOTLIMITATIONS

Does not show how to achieve a competitive advantage, so it must not be an end in itself

SWOT is a static assessment (or snapshot) in time

May lead the firm to overemphasize a single internal and external factor in formulating strategies

SWOT