SWOT Analysis

SWOT is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats to a project. It involves specifying the objective of the project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. The strengths and weaknesses usually arise from within an organisation, and the opportunities and threats from external sources.

The SWOT analysis is an important part of the project planning process:

• Strengths: attributes of the organisation that help achieve the project objective.
• Weaknesses: attributes of the organisation that stop achievement of the project objective.
• Opportunities: external conditions that help achieve the project objective.
• Threats: external conditions that could damage the project.

The following grid can be used to record each factor:

With a SWOT analysis it is useful to ask these questions:

• How can we use our strengths?
• How can we address each weakness?
• How can we exploit each opportunity?
• How can we guard against each threat?

Advantages of SWOT

• Simple and only costs time to do.
• Generates new ideas to help take advantage of an organisation's strengths and defends against threats.
• Awareness of political and environmental threats allows an organisation to have response plans prepared.

Disadvantages of SWOT

• May tend to persuade organisations to compile lists rather than think about what is actually important in achieving objectives.
• Presents lists uncritically and without clear prioritisation so that, for example, weak opportunities may appear to balance strong threats.
• Usually a simple list and not critically presented.