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1、SWOT analysisSWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identif
2、ying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.A SWOT analysis must start with defining a desir
3、ed end state or objective. A SWOT analysis may be incorporated into the strategic planning model.Strengths: characteristics of the business, or project team that give it an advantage over othersWeaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to othersO
4、pportunities: external chances to improve performance (e.g. make greater profits) in the environmentThreats: external elements in the environment that could cause trouble for the business or projectIdentification of SWOTs is essential because subsequent steps in the process of planning for achieveme
5、nt of the selected objective may be derived from the SWOTs.First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.The SWOT analysis is often used in academia
6、 to highlight and identify strengths, weaknesses, opportunities and threats.citation needed It is particularly helpful in identifying areas for development.citation neededMatching and convertingOne way of utilizing SWOT is matching and converting. Matching is used to find competitive advantages by m
7、atching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. An example of conversion strategy is to find new markets. If the threats or weaknesses cannot be converted a company should try to minimize or avoid
8、them.1edit Internal and external factorsThe aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the companys unique value chain. SWOT analysis groups key pieces of information into two main categories:Int
9、ernal factors The strengths and weaknesses internal to the organization.External factors The opportunities and threats presented by the external environment to the organization.The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organizations objectives.
10、What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation,
11、 and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather th
12、an think about what is actually important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats. It is therefore advisable to combine a SWOT analysis with portfolio ana
13、lyses such as the GE/McKinsey matrix 2 or COPE analysis3.It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces valuable strategies is important. A SWOT item that
14、generates no strategies is not important.edit Use of SWOT analysisThe usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizatio
15、ns, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey.edit Criticism of SWOTSome findings from Menon et al. (1999) 4 and Hill and Wes
16、tbrook (1997) 5 have shown that SWOT may harm performance.edit Corporate planningAs part of the development of strategies and plans to enable the organization to achieve its objectives, then that organization will use a systematic/rigorous process known as corporate planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business and environmental factors.7Set objectives defining what the organization is going to doEnvironment
