Charting the Results of a SWOT Analysis

A graphic representation of the results of a SWOT analysis facilitates the quick assimilation of the key features and highlights of the results. The SWOT Chart model differentiates between strenghts and weaknesses of different scales, relevance and strategic impact. The different probabilities of threats or opportunities are also incorporated. However, at first glance the SWOT analysis is not underpinned by a rigorous analytical framework on which to base the chart. The framework presented here allows the SWOT results to be plotted in a logical and meaningful way. The X-Axis Any SWOT factor, such as financial resources, management team or market reputation, is in itself neither a strength nor a weakness. The availability of substantial financial resources or a strong management team could be deemed to be a strength while their absence could be deemed as a weakness. From a graphic representation perspective a weakness is a negative strength. Strengths and weaknesses can be plotted on a continuous axis with: Significant Strength Strength Minor Strength Neutral Minor Weakness Weakness Significant Weakness 5 3 1 0 -1 -3 -5

Similarly, threats are negative opportunities and threats and opportunities can also be plotted on a continuous axis with Significant Opportunity 5 Opportunity 3 Minor Opportunity 1 Neutral 0 Minor Threat -1 Threat -3 Significant Threat -5 Thus, this first axis (x-axis) measures the scale or magnitude of the SWOT factor. Y-Axis All strengths or weaknesses do not have the same relevance or importance. The relevance of, say financial resources is clearly different in a business that requires long-term market development and investment to one that is generating significant positive cash flows. Similarly, all threats or opportunities are not equally likely to materialise. Clearly two threats that have significantly different probabilities of occurring should be treated differently. Thus, it is appropriate to use probability as an axis when plotting threats and opportunities. The second axis (Y-axis) is used to plot the relevance of strengths or weaknesses and the probability of threats or opportunities as follows: Strength/Weakness Highly Relevant Strength/Weakness Relevant Strength/Weakness little Relevance Neutral Opportunity/Threat Low Probability Opportunity/Threat Medium Probability Opportunity/Threat High Probability 5 3 1 0 -1 -3 -5

Z-Axis SWOT analysis is normally used as part of the strategic planning process. Within that context it is appropriate to consider the strategic impact of the relevant SWOT factor on the organisation. Two threats with equal probability of occurring can have significantly different impacts, if they occur. The Z-Axis (the diameter of the bubble in a bubble chart) is used to plot the impact as follows: High Impact Medium Impact Low Impact 5 3 1

Interpretation
Items plotted close to the (0,0) are the least significant, either because they are not rated as important or the relevance or probability is very low. Those that are at the extremes of the chart are rated as most important and are rated as highly relevant or a high probability of occurring. The size of the bubble indicates the strategic impact of the SWOT factor.

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SWOT Chart

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SWOT Chart User Guide

Copyright MarketWare International 2001-2004

User Instructions
The EXCEL model has a simple Push Button Menu system at the top of the Workbook in cells A2. The following general guidelines should be followed. Cells in Green are intended for User Input. Cells in Black are calculated and should not be altered by the user. On first use it is recommended that the Menu Options be used in the sequence in which they are numbered, 1, 2, 3, etc. On subsequent use the options can be selected as required to make amendments to the data originally entered.

Enter the SWOT Factors. These are the factors that you will subsequently be classified as Strengths, Weaknesses, Opportunities or Threats Factor Classification. Use the dropdown list to classify each of the SWOT Factors The choices are: Significant Strength Strength Minor Strength Minor Weakness Weakness Significant Weakness Significant Opportunity Opportunity Minor Opportunity Significant Threat Threat Minor Threat

Relevance/Probability. Use the dropdown list to rate each of the SWOT Factors The choices are: Strength/weakness highly relevant Strength/weakness relevant Strength/weakness little relevance Opportunity/Threat high probability Opportunity/Threat medium probability Opportunity/Threat low probability

Strategic Impact Use the dropdown list to rate each of the SWOT Factors The choices are: High Impact Medium Impact Low Impact Once the relevant data is entered the SWOT chart is automatically produced.

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SWOT Chart

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SWOT Chart

Copyright MarketWare International 2001-2004

SWOT Factors
Financial resources Market share Brand Image R&D Management Team Manufacturing Technology Sales Team Cost Base Innovation Exchange Rates Industry Specialisation Economic Outlook Government Policies Pricing Globalisation

Factor Classification

Relevance/Probability

Strategic Impact

Neutral Opportunity Opportunity Minor Opportunity Significant Strength Strength Minor Strength Significant Threat Threat Minor Threat Significant Weakness Weakness Minor Weakness Significant

0 1 3 5 3 1 5 -3 -1 -5 -3 -1 -5

7 5 6 13 11 12 4 2 3 10

3 2 1 2 3 1 4 5 6 4

3 2 1 3 2 1 3 2 1 3

Financial resources Market share Brand Image R&D Management Team Manufacturing Technology Sales Team Cost Base Innovation Exchange Rates

SWOT Chart Rating Probability Impact 5.0 5.0 5.0 3.0 3.0 3.0 1.0 1.0 1.0 -5.0 3.0 5.0 -3.0 5.0 3.0 -1.0 1.0 1.0 5.0 -5.0 5.0 1.0 -3.0 3.0 3.0 -1.0 1.0 -5.0 -5.0 5.0

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SWOT Input

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Weaknesses

SWOT Analysis
6.0

Strengths

4.0

2.0 Probability/Relevance

0.0 -6.0 -4.0 -2.0 0.0 2.0 4.0

-2.0

-4.0

-6.0
Threats
Financial resources Manufacturing Technology Market share Sales Team Economic Outlook

Scale
Brand Image Cost Base R&D Innovation Pricing

Opportunities
Management Team Exchange Rates

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Industry Specialisation

SWOT Chart

Government Policies

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Globalisation