S.W.O.T.

Analysis

Econ 403: Economic Development

Carlos A. Benito
 S.W.O.T. Analysis

Factors Internal
to Organization
Strengths Weakness

Opportunities Threats
Factors External
to Organization
 SWOT: Description
• A SWOT analysis generates information that
is helpful in matching an organization or
group’s goals, programs, and capacities to
the social environment in which it operates.
• Factors internal to the firm usually can be
classified as strengths (S) or weaknesses
(W), and those external to the firm can be
classified as opportunities (O) or threats (T).
• It is an instrument within strategic planning.
• When combined with dialogue it is a
participatory process
 SWOT: Internal Factors
• Strengths
Positive tangible and intangible attributes,
internal to an organization. They are within the
organization’s control.
• Weakness
Factors that are within an organization’s control
that detract from its ability to attain the core
goal. 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 mission or operation at risk.
The organization may benefit by having contingency plans
to address them if they should occur.
– Classify them by their “seriousness” and “probability of
occurrence”.
Back to Design
Simple Rules for SWOT Analysis
• Be realistic about the strengths and weaknesses of
your organization or group.
• Distinguish between where your organization is
today, and where it could be in the future
• Be specific: Avoid gray areas.
• Always analyze in relation to your core mission.
• Keep your SWOT short and simple. Avoid
complexity and over analysis
• Empower SWOT with a logical conceptual
framework.
 SWOT for a Peasant Coop
• Strengths
– The peasants who have organized the cooperative are relative
young and with a strong awareness of social justice.
– They have participated in an agro-ecological planning workshop.
– They control agricultural lands with irrigation
– Both men and women are active participants
– Local school teachers are members of the organization.
• Weakness
– Lack marketing expertise in cities.
– Lack access to credit
– Depend on intermediaries for transportation
– poor quality control of produce
 SWOT for a Peasant Coop
• Opportunities
– Modern farm-market facilities have been developed in three towns.
– An NGO has organized a system of small credits for women.
– The county is building a secondary road between the coop location
and the main highway.
• Threats:
– A large food retailer is contracting with local peasants.
– Transportation intermediaries have access to local government
officers.
– Some peasants are selling their land to developers and out
migrating to large cities.
 Caution!
• SWOT analysis can be very subjective. Do
not rely on it too much. Two people rarely
come-up with the same final version of
SWOT.
• Use it as guide and not a prescription.