You may have gained some basic understanding of SWOT Analysis. You like to start using it for your work or your personal objectives. Whichever way you do it, it will bring about a your desired outcome because the data you collected for the Four factors of S.W.O.T. is objective and relevant.

If you have put the SWOT Analysis into real life practice, you could have faced with some difficulties in using it. But don’t worry too much, as more practice would gain better experience with SWOT Analysis.

In this article, I will point out some of the Pros and Cons of using SWOT Analysis in Strategic Planning so you are aware of it. The sample list below should help you to reinforce your understanding of the SWOT Analysis.

PROS
1) Factual data are available to understand external factors as well as internal capabilities
2) Get a chance to evaluate the external opportunities and threats
3) A factual evaluation of own strengths and Weaknesses as compared with competitors
4) Open up a new dimension of competitive position

CONS
1) Time consuming
2) Data collected may not be current (member may take past single even to make conclusion)
3) Differences in opinion due to difference understanding of the SWOT process
4) Form own opinion of an event instead of base on factual information

While you go through the SWOT Analysis yourself, you may encounter various different experiences. Feel free to add your experience into the list above. More importantly, it is for you to take advantage of the PROS and avoid the CONS

If you want to review the entire 5-series of SWOT Analysis, then click  5 series of SWOT Analysis Tutorial

SWOT Analysis is one of the effective analytical tools to evaluate a situation. The situation may be strategic related or capabilities related. SWOT Analysis is often used along with Strategic planning and it forms one of the key critical success factors in a Strategic Planning Process.

There are many ways how a SWOT analysis is used. This TQM article aimed to share how SWOT analysis can be used as an essential tool to Strategic Planning Process as I practiced in my workshop conducted over the years.

While detail Analysis is performed, it can become a complex process because it entails several data analysis involves external factors such as Political, Economical, Societal and Technological in short called P.E.S.T. Besides, it also examines internal factors such as operational capabilities as compared to the competitors.
To recap, S.W.O.T. is an abbreviation for Strengths-Weaknesses-Opportunities-Threats. It represents a group of four factors which data are collected to reflect each of these four factors. These four factors are categorized into Internal and External Factors.

How to collect relevant data for the S.W.O.T.?
In order to use the SWOT Analysis for the Strategic Planning, you need to understand how to collect the data for the SWOT factors.
Lets start with the Strengths. To collect data for the Strengths in relation to your competitor, you may use the following guides:-
• What are the advantages of your company over your competitor?
• What are some of the customer benefit you can offer?
• What are some your customer relationship?
• What are some of the offers to customer your can fulfilled?
• What are some of the low cost operation capabilities?
• What are your financial strengths?

Similar to the Strengths, Weaknesses is another internal factor that deals with the weaknesses of the operation. The impact of these weaknesses is more urgent when compared it with the competitors who are ahead of you. Below is the guideline you can use
to identify weaknesses:-
• What are some of the setback with your company or operation
• What are some of the “out-dated” or inefficient equipment?
• What are some of the bad customer experience?
• What are some of the repeated operation failure?
• What are some of the escalated cost components?

In the area of Opportunities, it is an external factor. When dealing with external factors, you have to be objectives. Keep focus on external factors that has an influence to the market and your sales opportunity and those are not within your control. You may use the following guidelines to help you to generate the list of opportunities:-
• Political or Policy changes that may spur development
• Economic situation that encourage spending.
• Societal stability that may encourage harmony (more spending)
• Technological advancement that can accelerate your operation

In the area of Threats, it is another external factor you must deal with realistically and that the information has great impact to your business. Keep focus on external factors that has an influence to the market and your sales opportunity and those are not within your control. You may use the following guidelines to help you to generate the list of opportunities:-
• Any new entrance to your industry?
• Any form of substitutions or alternatives
• What are some of the Political changes that influence the economy?
• Policy imposed that cost more in the long run
• Economic downturn in your own targeted market
• Societal instability
• Obsolete technology that hinder speed to market

Once you have completed the data collection for the four factors, you need to study the list to ensure they are clearly understood. You need to keep your list short probably within 10 items. You may make use of some TQM tools to help you. Examples of some of the TQM tools are selection grid, you and competitor matrix,

With the finalized list the S.W.O.T. factor then it is ready be used to generate strategies options. I will cover this step in my next distribution

Tips: When generate the list of S.W.O.T., try to write the statement as precise and concise as possible. Ensure all members understand and interpret them correctly.

If you want to review the entire 5-series of SWOT Analysis, then click  5 series of SWOT Analysis Tutorial

SWOT Analysis is widely used in the business world but not exposed to many employees. They are used by high level management staffs. This TQM articles writes about a brief concepts of SWOT Analysis aimed to provide interested parties a basic understanding of SWOT Analysis.

What is S.W.O.T.?

S.W.O.T. is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. As you can see, the S.W.O.T. consists of four factors each clearly has its own identity and purpose. S.W.O.T is commonly classified an External and Internal Factors. For the External factors, it consists of the Opportunities and Threats, whereas the Internal Factors are Strengths and Weaknesses.

Where is S.W.O.T. being applied?

S.W.O.T. or S.W.O.T. Analysis as it may sometimes being called can be performed in a variety of application or situation. It can be used as a situation analysis as an input into a strategic planning process at corporate of company level. It can also apply to evaluate the situation in terms of its capabilities. We use S.W.O.T. as a situation analysis tool.

When do we perform a S.W.O.T. Analysis

In common practice, S.W.O.T. Analysis is performed during the Strategic Planning or Business budget session normally done at the end of a financial year. But to perform a S.W.O.T. should not be limited to a yearly affair. You may perform a S.W.O.T. Analysis whenever it is needed to help you to identify causes of a non-conformance and you needed a new solution or strategy.

Who would perform a S.W.O.T.

Analysis In most cases, leaders of an organization perform a S.W.O.T. Analysis. However, it should not be limited to this group of people. In fact, anyone who has an interest and trained can perform a S.W.O.T. Analysis for the situation they are in. I have many situations where heads of a department perform a S.W.O.T. Analysis for their own operation issues because they want to develop solutions based on facts.

Why do you need to perform a S.W.O.T.

Analysis As it can be seen by now, data gathering is an essential part of S.W.O.T. Analysis. Hence, the information collected is likely to be more factual. Any solution derived from S.W.O.T. will be more realistic and reliable.

How to perform a S.W.O.T. Analysis?

As data collection is one of the key activities in S.W.O.T. analysis, it should allow enough time to bring back the data. 1-3 month before a S.W.O.T. Analysis session is conducted. Once the data is collected, it should be grouped into the four factors. This can be done individually or in a team.

In summary, with some basic understanding of S.W.O.T. Analysis, the solution derived from it can be value add to the organization.

If you want to review the entire 5-series of SWOT Analysis, then click  5 series of SWOT Analysis Tutorial