SWOT analysis

INTRODUCTION

SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats. Occasionally, it may also be found as a ‘WOTS up’ analysis or the TOWS analysis. 

A SWOT analysis is a planning tool used to understand the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business. It involves stating the objective of the business or project and identifying the internal and external factors that are either supportive or unfavourable to achieving that objective. SWOT is often used as part of a strategic or business planning process, but can be useful in understanding an organisation or situation and decision-making for all sorts of situations.

THE CONCEPT

Any organisation undertaking strategic planning will at some point assess its own strengths and weaknesses. When combined with an inventory of opportunities and threats in the organisation’s external environment, the organisation is effectively making a SWOT analysis, that is it is establishing its current position in light of its Strengths, Weaknesses, Opportunities and Threats. 

A SWOT analysis process generates information that is helpful in matching an organisation or group’s goals, programs, and capacities to the social environment in which it operates. The ‘SWOT’ itself is only a data capture exercise - the analysis follows later.

• Strengths: positive tangible and intangible attributes, internal to an organisation and within the organisation’s control.
• Weaknesses: internal factors within an organisation’s control that detract from the organisation’s ability to attain the desired goal. Which areas might the organisation improve?
• Opportunities: external attractive factors that represent the reason for an organisation to exist and develop. What opportunities exist in the environment, which will propel the organisation? Identify them by their ‘time frames’.
• Threats: external factors beyond the organisation’s control which could place the organisation mission or operation at risk. The organisation may benefit by having contingency plans to address them if they should occur. Classify them by their severity and probability of occurrence.

A simpler SWOT analysis as an example:This might result from a simpler analysis of a children’s charity.

Strengths

• Creativity and imagination of staff.
• Active support of children and parents.
• Good track record in engaging children and play-based work.
• Experience of community work and working with difficult to reach communities.

Weaknesses

• Staff turnover.
• Short-term funding.
• Few IT resources/skills.
• Organisational infrastructure.
• Inexperience in financial management.

Opportunities

• Potential future funding.
• Real funding for play and developmental work.
• Improved guidance to meet requirements of regulation.
• More external support for play, e.g. opportunities for training.

Threats

• Future funding not guaranteed or secured.
• Competition from other providers (public and private).
• Increasing regulation (impacting play, staff and buildings).