SWOT
Analysis
SWOT
A widely used framework for organizing and
using data and information gained from
situation analysis
Encompasses both internal and external
environments
One of the most effective tools in the analysis
of environmental data and information
SWOT description
A SWOT analysis generates information that is
helpful in matching an organization’s or a group’s
goals, programs, and capacities to the social
environment in which they operate
It is an instrument within strategic planning
When combined with a dialogue, it is a
participatory process
SWOT
Factors affecting an organization can usually
be classified as:
Internal factors Strengths Weaknesses
Strengths (S)
Weaknesses (W)
External factors Opportunities Threats
Opportunities (O)
Threats (T)
SWOT: internal factors
Strengths
Positive tangible and intangible attributes, internal to
an organization. They are within the organization’s
control
Weaknesses
Factors that are within an organization’s control that
detract from its ability to attain the core goal. In
which areas might the organization improve?
SWOT: external factors
Opportunities
External attractive factors that represent the reason
for an organization to exist and develop. What
opportunities exist in the environment which will
propel the organization?
Identify them by their “time frames”
Threats
External factors, beyond an organization’s control,
which could place the organization’s mission or
operation at risk. The organization may benefit by
having contingency plans to address them should
they occur
Classify them by their “seriousness” and “probability
of occurrence”
For the external factors
Seriousness of Impact
Low High
Minimum Must
High resources if plan
any for
Probability of
occurrence
Maintain
Low Forget
flexibility in
it
plan
Create a plan of action
What steps can you take to:
Capitalize on your strengths
Overcome or minimize your weaknesses
Take advantage of some new opportunities
Respond to the threats
Set goals and objectives, like with any other
plan
Major benefits of SWOT
analyses
Simplicity
Flexibility
Integration and synthesis
Collaboration
Lower costs
For a productive SWOT
analysis
Stay focused. Be specific and avoid grey
areas. Keep your swot short and simple. Avoid
complexity and over analysis
Collaborate with other functional areas
Examine issues from the customers’/
stakeholders’ perspective
Look for causes, not characteristics
Separate internal issues from external issues
Stay focused
It can be a mistake to complete just one
generic SWOT analysis for the entire
organization
When we say SWOT analysis, we mean
SWOT analyses
Collaborate with
other functional areas
Information generated from the SWOT analysis
can be shared across functional areas
SWOT analysis can generate communication
between managers that ordinarily would not
communicate
Creates and environment for creativity and innovation
Examine issues from
stakeholders’ perspectives
To do this, the analyst should ask:
What do stakeholders (and non-stakeholders) believe
about us as an organization?
What do stakeholders (and non-stakeholders) think of
our product quality, service quality, customer service,
price, overall value, convenience, and promotional
messages in comparison to our competitors?
What is the relative importance of these issues as
stakeholders see them?
Taking the stakeholders’ perspective is the
cornerstone of a well done SWOT analysis
Look for causes not
characteristics
Causes for each issue in a SWOT analysis can
often be found in the organization’s and
competitors’ resources
Major types of resources:
Financial
Organizational
Intellectual
Informational
Legal
Relational
Human
Reputation
Separate internal
and external issues
Failure to understand the difference between
internal and external issues is one of the major
reasons for a poorly conducted SWOT analysis
Know yourself
Know your customer/stakeholder
Know your competitors
Know your environment
The elements of a SWOT
analysis
Strengths and weaknesses
Scale and cost economies
Size and financial resources
Intellectual, legal, and value of reputation
Opportunities and threats
Trends in the competitive environment
Trends in the technological environment
Trends in the socio-cultural environment
SWOT-driven planning
1. The assessment of strengths and weaknesses should
look beyond products, services and resources to
examine processes that meet customers’ or
stakeholders’ needs
2. Achieving goals and objectives depends on
transforming strengths into capabilities by matching
them with opportunities
3. Weaknesses can be converted into strengths with
strategic investment. Threats can be converted into
opportunities with the right resources
4. Weaknesses that cannot be converted become
limitations which must be minimized if obvious or
meaningful to customers or stakeholders
The SWOT matrix
Caution
SWOT analysis can be very subjective. Do not
rely too much on it. Two people rarely come up
with the same final version of a SWOT
Use it as a guide and not as a prescription
Example - post harvest
losses
• Strengths
- Sri Lanka possesses strong institutional
capacity that can contribute to changes in the
current situation
- There is increasing governmental interest in the
fisheries sector
- Many fishermen co-operatives are well
organized and capable to support
developments to reduce PHL
Example - post harvest
losses
Weaknesses
Little political pressure from fishermen and
boat owners
Lack of infrastructure
Inferior design of multi-day boats and fishery
harbours
Lack of awareness
Acceptance of low quality fish and low
purchasing power of consumers in the
domestic market
Example - Post Harvest
Losses
Weaknesses
Rapid policy changes due to frequent changes in
politically elected authorities within the
governmental sector
Limited knowledge of financial accounting among
fishermen
Tropical weather conditions
High volume harvests of cultivated fish when
seasonal tanks are being emptied
Excess governmental subsidies to increase
fishermen recruitment without them having
proper training or fishing equipment
Example - post harvest
losses
Opportunities
- Possibilities to increase nutritional and economical
value of fish products
- Possibilities for fishermen- and vessel owners to
increase their revenue and income by reducing PHL
- Possibilities to increase export volume and value of
fish products by reducing PHL
- Possibilities to strengthen financial resources of
costal fisheries communities
- Vessel owners have recently formed an association
at the national level that is likely to support
developments to reduce PHL
Example - post harvest
losses
Threats
PHL reduce the chances of fishermen and vessel
owners to maintain profitable and sustainable
livelihood
PHL reduces the nutritional value of fish products
Insufficient availability of clean water, improper
sewage management, poor hygiene practices on
boats and lack of facilities at landing sites and in
harbours increases the likelihood of PHL
References
Department for international development (2002).
Tools for development: A handbook for those engaged
in development activity. Downloaded 1st March from:
http://www.unssc.org/web1/ls/downloads/toolsfordevelo
pment%20dfid.pdf
European Commission (2004). Project Cycle
Management Guidelines. Downloaded 1st March from:
http://ec.europa.eu/europeaid/qsm/documents/pcm_ma
nual_2004_en.pdf
