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Definitions
Strengths:- A company strength is a successful application of a competency or exploitation of a
critical factor to develop company competitiveness.
Threats:- A threat is an external condition that could negatively impact the company’s critical
performance parameters and diminish competitive advantage provided positive action is not
taken in time.
Key to SWOT-Driven Strategic Planning
Step 1:
External Opportunities and Threats:
Brainstorm opportunities and threats using the definitions provided previously. Use the examples
given in the sample tables as a guide.
Prioritise this list.
On Table 1.2 Opportunities / Threats Analysis form supplied rate each factor from Major
Opportunity to Major Threat. Also give each factor a probability of occurrence / success rating.
Plot each factor on the Probability of Occurence - Attractiveness / Seriousness (Table 1.4).
Items in cell 1 should be adopted. Items in cell 2/3 should be monitored for change are ok. Items
in cell 3 are of low priority. Items in cell 4 point to potential mis-application of resources.
Step 2:
Internal Strengths and Weaknesses:
Concentrate on the current and past performance of your company in the market place. Review
marketing, financial, manufacturing, organisational and any other competencies that are relevant
to your company. Brainstorm factors that influence each competency.
Prioritise this list.
On Table 1.1 Strength / Weaknesses Analysis form supplied rate each factor from Major
Strength to Major Weakness. Also give each factor an importance rating.
Plot each factor on the Importance - Performance Matrix (Table 1.3).
Items in cell 1 should be strengthened. Items in cell 2 are ok. Items in cell 3 are of low priority.
Items in cell 4 point to potential mis-application of resources.
Step 3:
Once the SWOT review is complete, the future strategy may be readily apparent or, as is more
likely the case, a series of strategies or combinations of tactics will suggest themselves.
Table 1.1: Strengths / Weaknesses Analysis
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Performance
Importance
Low High
1. 2.
High Concentrate here Keep up the good work
3. 4.
Low Low priority Possible overkill
Table 1.4: External Condition - Probability Matrix
High
Low 3. 4. Probability
Monitor for change Major Threat of
Occurrence
of Threat
SWOTs usually reflect a person's existing position and viewpoint, which can be
misused to justify a previously decided course of action rather than used as a
means to open up new possibilities. It is important to note that sometimes threats
can also be viewed as opportunities, depending on the people or groups involved.
There is a saying, "A pessimist is a person who sees a calamity in an
opportunity, and an optimist is one who sees an opportunity in a calamity."
SWOTs can allow institutions to take a lazy course and look for 'fit' rather than to
'stretch' they look for strengths that match opportunities yet ignore the
opportunities they do not feel they can use to their advantage. A more active
approach would be to involve identifying the most attractive opportunities and
then plan to stretch the college to meet these opportunities. This would make
strategy a challenge to the institution rather than a fit between its existing
strengths and the opportunities it chooses to develop