04-Dec-23

ABDUL QAYOOM
B.E (CIVIL)
M.E (CONSTRUCTION MANAGEMENT)
PhD (CONSTRUCTION ENGINEERING & INFRASTRUCTURE MANAGEMENT)
NEBOSH IGC, IOSH, HABC Lev2 Award Fire Safety © Abdul Qayoom

SWOT ANALYSIS

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Definition
 Acronym for Strengths, Weaknesses, Opportunities, and Threats.
 Technique is credited to Albert Humphrey who led a research project at Stanford
University in the 1960s and 1970s.
 Planning tool used to understand Strengths, Weaknesses, Opportunities, & Threats
involved in a project / business.
 Used as framework for organizing and using data and information gained from
situation analysis of internal and external environment.
 Technique that enables a group / individual to move from everyday problems /
traditional strategies to a fresh perspective.

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STRENGTHS
 Characteristics of the business or a team that give it an advantage over others in
the industry.
 Positive tangible and intangible attributes, internal to an organization.
 Beneficial aspects of the organization or the capabilities of an organization,
which includes human competencies, process capabilities, financial resources,
products and services, customer goodwill and brand.
 For example: Abundant financial resources, Well-known brand name, Economies
of scale, Lower costs [raw materials or processes], Superior management talent,
Better marketing skills, Good distribution skills, Committed employees.

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WEAKNESSES
 Characteristics that place the firm at a disadvantage relative to others.
 Detract the organization from its ability to attain the core goal and influence its
growth.
 Weaknesses are the factors which do not meet the standards we feel they should
meet. However, weaknesses are controllable. They must be minimized and
eliminated.
 Examples - Limited financial resources, Weak spending on R & D, Very narrow
product line, Limited distribution, Higher costs, Out-of-date products / technology,
Weak market image, Poor marketing skills, Limited management skills, Under-
trained employees.
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OPPORTUNITIES
 Chances to make greater profits in the environment
 External attractive factors that represent the reason for an organization to exist &
develop.
 Arise when an organization can take benefit of conditions in its environment to
plan and execute strategies that enable it to become more profitable.
 Organization should be careful and recognize the opportunities and grasp them
whenever they arise.
 Opportunities may arise from market, competition, industry/government, market
growth, rival firms are complacent, changing customer needs/tastes, new uses
for product discovered, economic boom, Government deregulation, sales
decline for a substitute product . © Abdul Qayoom

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THREATS
 External elements in the environment that could cause trouble for the business
 External factors, beyond an organization’s control, which could place the
organization’s mission or operation at risk.
 Arise when conditions in external environment jeopardize the reliability and
profitability of the organization’s business.
 Compound the vulnerability when they relate to the weaknesses. Threats are
uncontrollable. When a threat comes, the stability and survival can be at stake.
 Examples - Entry of foreign competitors, introduction of new substitute products,
product life cycle in decline, changing customer needs/tastes, rival firms adopt
new strategies, increased government regulation, economic downturn.
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AIMS OF SWOT ANALYSIS
 To help decision makers share and
compare ideas.
 To bring a clearer common purpose and
understanding of factors for success.
 To organize the important factors linked to
success and failure in the business world.
 To analyze issues that have led to failure in
the past.
 To provide linearity to the decision-making
process allowing complex ideas to be
presented systematically. © Abdul Qayoom

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HOW TO CONDUCT SWOT ANALYSIS
Here's a step-by-step guide on how to conduct a SWOT analysis:
Step 1: Define the Objective
Step 2: Identify Strengths
Step 3: Identify Weaknesses
Step 4: Identify Opportunities
Step 5: Identify Threats
Step 6: SWOT Matrix
Step 7: Prioritize and Analyze
Step 8: Develop Strategies
Step 9: Review and Update
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HOW TO CONDUCT SWOT ANALYSIS
Step 1: Define the Objective
Clearly state the objective or goal for which you are conducting the SWOT analysis.
This could be related to a business, project, product, or any other initiative.

Step 2: Identify Strengths

Identify the internal factors that give you an advantage over others. Consider
aspects such as resources, capabilities, expertise, brand reputation, and any other
positive attributes. Ask questions like:
What are our unique selling points?
What do we do better than others?
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HOW TO CONDUCT SWOT ANALYSIS
Step 3: Identify Weaknesses
Examine internal factors that may place you at a disadvantage compared to others.
Look at areas that need improvement, potential obstacles, or challenges. Questions
to ask include:
What are our areas of improvement?
Where do we face challenges or obstacles?

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HOW TO CONDUCT SWOT ANALYSIS
Step 4: Identify Opportunities
Evaluate external factors that could be beneficial to your objective. This might
include market trends, technological advancements, changes in regulations, or
emerging opportunities. Ask questions like:
What trends or opportunities exist in the market?
How can we leverage external factors to our advantage?

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HOW TO CONDUCT SWOT ANALYSIS
Step 5: Identify Threats
Look at external factors that could pose a threat to the success of your objective.
This could include competitors, economic downturns, regulatory changes, or other
external challenges. Questions to consider are:
What are the potential threats in our industry or market?
What external factors could negatively impact our success?

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Steps 2-5 Internal & External Environment

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HOW TO CONDUCT SWOT ANALYSIS
Step 6: SWOT Matrix
Create a matrix with four quadrants (Strengths, Weaknesses, Opportunities, Threats)
and populate it with the identified factors. This visual representation can help you
see relationships between internal and external factors.

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Step 6. SWOT Matrix

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HOW TO CONDUCT SWOT ANALYSIS
Step 7: Prioritize and Analyze
Once you have identified and listed factors in each quadrant, prioritize them based
on their significance. Focus on the most critical elements that will have the most
impact on your objective.

Step 8: Develop Strategies

Based on the analysis, develop strategies that leverage your strengths, address your
weaknesses, take advantage of opportunities, and mitigate threats. These strategies
should align with your overall objective.

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HOW TO CONDUCT SWOT ANALYSIS
Step 9: Review and Update
SWOT analysis is not a one-time process. Regularly review and update your analysis
as internal and external factors evolve.

Remember that the effectiveness of a SWOT analysis lies in the depth of your
research and the critical thinking applied to the information gathered. It's a versatile
tool that can be applied to various situations, including business planning, project
management, and personal development.

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SWOT Analysis

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ADVANTAGES
Besides the broad benefits, here are few more benefits of conducting SWOT Analysis:

 Helps in setting of objectives for strategic planning

 Provides a framework for identifying & analyzing strengths, weaknesses,
opportunities & threats
 Provides an impetus to analyze a situation & develop suitable strategies and
tactics
 Basis for assessing core capabilities & competencies
 Evidence for, and cultural key to, change
 Provides a stimulus to participation in a group experience
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DISADVANTAGES
 Can be very subjective. Two people rarely come up with the same final version of
a SWOT. Use it as a guide and not as a prescription.
 May cause organizations to view circumstances as very simple due to which
certain key strategic contact may be overlooked.
 Categorizing aspects as strengths, weaknesses, opportunities & threats might be
very subjective as there is great degree of uncertainty in market.
 To be effective, SWOT needs to be conducted regularly. The pace of change
makes it difficult to anticipate developments.
 The data used in the analysis may be based on assumptions that subsequently
prove to be unfounded [good and bad].
 It lacks detailed structure, so key elements may get missed. © Abdul Qayoom

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TIPS TO CONDUCT SWOT ANALYSIS

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TIPS TO CONDUCT SWOT ANALYSIS

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EXAMPLE

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