Do you find it easy to write S.W.O.T reports? When faced with producing the first STRENGTHS, WEAKNESSES, OPPORTUNITIES and THREATS analysis for SNOBS I thought it would be easy.
In fact, it turned out to be one of the most difficult chapters of the business plan. Optimism made it easy to think of strengths and opportunities, but it was difficult to list weaknesses and recognise threats.
If you’re just starting out, rest assured that W’s and T’s become far more obvious with experience. The only problem you’ll have then is lack of time, or complete reluctance, to write them down (ha-ha). But we know self-auditing and future planning is key to business success, right?
So let’s say you will get around to writing or renewing a S.W.O.T analysis (of yourself or your business) soon. The following information and tips may help.
ORIGINS OF S.W.O.T
Whose idea was this anyway? It’s interesting, I think, that SWOT analysis exists today thanks to a decade-long study funded by the Fortune 500 companies. The research was conducted between 1960-1970 at Stanford Research Institute, in the United States. Even the most successful companies of their time struggled with self-assessment and strategic planning!
It was largely found to be a result of “poor group human behaviour”, which is understandable. Most of us have experienced ‘team work’ being fraught with indecision, inaccuracy and severe bouts of procrastination. [Did you know: studies on this issue - coined "group dynamics" - have been going on since 1940.]
So the “missing link” to successful long-range planning appeared to be the failure to get a “management team agreed and committed to a comprehensive set of action programmes.” That’s because it’s very difficult to change someone’s values or set objectives for them. Researches found the best, first step was appraisal, which brings us right back to why it’s difficult to complete a solo SWOT!
It’s tough work measuring yourself objectively, in regard to anything you’re intimately involved with (business or personal). Hence the phrase about struggling to “see the forest from the trees”. With that in mind, the following list of questions are to help kick-start your thinking.
Strengths and Weaknesses
Focuses your business to look internally at what you do well, and not so well. Ask yourself:
Do you have clearly set goals?
Do you have a formal business structure?
Do you require start-up funds?
Do you have access to low cost resources?
Have you completed market research?
Do you have a good track record of financial management?
Do you have access to advisors and mentors?
Is your location appropriate?
Do you have up-to-date facilities?
Do you have a professional business image?
Do you have staff?
In lieu of staff, do you have assistance of any kind?
Can you delegate?
What do you do well?
What do other people see as your strengths?
Are you good with technology; able to take advantage of it?
Are your records up to date?
What do you do poorly, or not at all?
What objections do potential clients frequently raise?
Do you have strong cash flow and working capital?
Do you have an after sales service plan?
Do you have access to funds for unexpected expenses?
Do you have any patents, copyrights or trade marks?
Do you have a unique and superior product / service?
Are you/your team highly motivated?
Do you have the right people on your team?
Do you have effective systems and procedures documented?
Are you aware of, and complying with, OH&S regulations?
Do you have plans/procedures for employment, training, induction and appraisals?
Threats and Opportunities
These are external factors; focusing on conditions of the real world. Ask yourself:
What is your competition doing?
What are the current trends; in technology, the economy, social patterns, local events.
Do you know who your market segments are?
Are there high industry entry barriers?
What are the best opportunities in the near future?
Is your industry experiencing high growth?
Are new products readily available?
Do you have a selection of suppliers?
Is there a demand in the marketplace for your products /services?
How does your business compare in overall price structure?
Are there many substitute products or services available?
Are there many growth opportunities?
Are there franchising opportunities?
Are there export opportunities?
Have you investigated government policies for your business / industry?
Is your industry subject to technological change?
How will changes in your area of expertise affect what you do?
Could any of your weaknesses seriously threaten your business?
Call to Action
Unfortunately it’s not over yet. The point of doing a SWOT analysis is to focus on targets that will benefit you and identify strategies for future success. It’s called ‘analysing the four quadrants of the SWOT matrix’. Pretty fancy, huh? In short, this is what it means:
SWOT Quadrant I: Strengths/Opportunities
SO quadrant = opportunities to pursue
SWOT Quadrant II: Strengths/Threats
ST quadrant = threats to eliminate
SWOT Quadrant III: Weaknesses/Opportunities
WO quadrant = things to improve
SWOT Quadrant IV: Weaknesses/Threats
WT quadrant = risk mitigation and avoidance
How about you?
Would you add any further prompter questions to the Strengths & Weaknesses or Threats & Opportunity lists?
Have you found a successful way to conduct your businesses SWOT reports? Tell us about it, in the comments box…
{ 3 comments… read them below or add one }
I find it useful to add an extra column after each – to write Implications for each of the SWOT elements.
We used to get our sales reps to do something similar to this for all new client actions, most of the time it worked well though I think it was mostly the management that got the most benefit from it as it was easy to see who was actually seeking new business.
Hey, great post, one of the better SWOT posts I have read on the web. Here is a link to a fee template. There are two templates you can download, the second one has about 56 leading questions to help you with your SWOT. (All free)
http://www.whatmakesagoodleader.com/swot_analysis_template.html