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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”
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 Must plan for Minimum resources if any Maintain flexibility in plan Forget it High Low
Low Probability of occurrence Seriousness of Impact
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
Department for international development (2002). Tools for development: A handbook for those engaged in development activity . Downloaded 1 st March from: http://www.unssc.org/web1/ls/downloads/toolsfordevelopment%20dfid.pdf
European Commission (2004). Project Cycle Management Guidelines. Downloaded 1 st March from: http://ec.europa.eu/europeaid/qsm/documents/pcm_manual_2004_en.pdf