How to identify your SWOT (strength, weakness, opportunity, threats)

How to identify your SWOT?

A man named Albert Humphrey created the technique, known as SWOT, when leading a research project at Stanford University in the 1960's and 1970's using data from the Fortune 500 companies. This stands for strength, weakness, opportunity, and threats.SWOT analysis is a strategic planning tool used to evaluate the factors involved in a project or in a business venture.In doing so, the external and internal factors that are favorable and unfavorable are identified in order to achieve an objective.

If an objective has been identified, SWOT analysis can be used to help in the pursuit of that objective.SWOT's are identified as:

- Strengths: attributes of the organization that are helpful to achieving the objective.
- Weaknesses:attributes of the organization that are harmful to achieving the objective.
- Opportunities:external conditions that are helpful to achieving the objective.
- Threats:external conditions that are harmful to achieving the objective.

It is critical that correct identifications of SWOT's are identified because of the subsequent steps in the process of planning for the achievement of the selected objective are to be derived from the SWOT's.

Those who are involved in making the decisions must, first, determine whether the objective is attainable with the given SWOT"S. If the objective is not attainable a different objective must be selected and the process repeated.

If the objectives seem attainable, the SWOTs are used as inputs to the creative era of possivbe strategies, by asking and answering each of the following four questions, several times:

1. How can we Use each Strength?
2. How can we Stop each Weakness?
3. How can we Exploit each Opportunity?
4. How can we Defend against each Threat?

A broad range of perspectives, by a cross-functional team or a task force, should carry out the SWOT analysis.A SWOT team may include an accountant, a salesperson, an executive manager, an engineer, and a representative of the government.

The main goal of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective.Key pieces of SWOT group information into two main categories:

- Internal factors- The strengths and weaknesses internal to the organization.
- External factors- The opportunities and threats presented by the external environment.

Depending upon the impact of the organization's objectives, internal factors may be viewed as strengths or weaknesses.External factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or the competitive position.

Examples of SWOTs:

Strengths and Weaknesses:
- Resources- financial, intellectual, location
- Customer service
- Efficiency
- Infrastructure
- Quality
- Staff
- Management
- Price
- Delivery time
- Cost
- Capacity
- Relationships with customers
- Brand strength
- Local language knowledge
- Ethics
- Principles
- Patents
- Strong brand names
- Good reputation among customers

Opportunities and threats:
- Political/legal
- Market trends
- Economic condition
- Mergers
- Joint ventures
- Strategic alliances
- Expectations of stakeholders
- Technology
- Public expectations
- Competitors and competitive actions
- Bad PR
- Criticism (Editorial)
- Global Markets

The usefulness of SWOT analysis is not limited to profit-seeking organizations.SWOT analysis may be used in any decision-making situation when a desired objective has been defined. It is a technique widely used by a group, department, unit, organization, or even an individual.