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S.W.O.T. Analysis: Econ 403: Economic Development Carlos A. Benito

This document provides information on conducting a SWOT analysis, which examines the internal strengths and weaknesses of an organization as well as external opportunities and threats. It defines each component of a SWOT - strengths, weaknesses, opportunities, threats - and provides examples of how to analyze them. The document concludes with guidelines for effective SWOT analysis and a sample SWOT for a peasant cooperative.

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44 views

S.W.O.T. Analysis: Econ 403: Economic Development Carlos A. Benito

This document provides information on conducting a SWOT analysis, which examines the internal strengths and weaknesses of an organization as well as external opportunities and threats. It defines each component of a SWOT - strengths, weaknesses, opportunities, threats - and provides examples of how to analyze them. The document concludes with guidelines for effective SWOT analysis and a sample SWOT for a peasant cooperative.

Uploaded by

Steve_John_5570
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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S.W.O.T.

Analysis

Econ 403: Economic


Development
Carlos A. Benito
Definition

 Situation analysis in which internal strengths


and weaknesses of an organization, and
external opportunities and threats faced by it
are closely examined to chart a strategy.
S.W.O.T. Analysis

Factors Internal
to Organization
Strengths Weakness

Opportunities Threats
Factors External
to Organization
SWOT: Description

 A SWOT analysis generates information that is helpful


in matching an organization or group’s goals,
programs, and capacities to the social environment in
which it operates.
 Factors internal to the firm usually can be classified as
strengths (S) or weaknesses (W), and those external to
the firm can be classified as opportunities (O) or
threats (T).
 It is an instrument within strategic planning.
 When combined with dialogue it is a participatory
process
SWOT: Internal Factors
 Strengths
Positive tangible and intangible attributes, internal
to an organization. They are within the
organization’s control.
 Weakness
Factors that are within an organization’s control
that detract from its ability to attain the core goal.
Which areas might the organization improve?
SWOT: External Factors

 Opportunities
– 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”
 Threats
– External factors, beyond an organization’s control, which could
place the organization mission or operation at risk. The
organization may benefit by having contingency plans to address
them if they should occur.
– Classify them by their “seriousness” and “probability of
occurrence”.
Simple Rules for SWOT Analysis
 Be realistic about the strengths and weaknesses of
your organization or group.
 Distinguish between where your organization is
today, and where it could be in the future
 Be specific: Avoid gray areas.
 Always analyze in relation to your core mission.
 Keep your SWOT short and simple. Avoid complexity
and over analysis
 Empower SWOT with a logical conceptual
framework.
SWOT for a Peasant Coop
 Strengths
– The peasants who have organized the cooperative are relative
young and with a strong awareness of social justice.
– They have participated in an agro-ecological planning workshop.
– They control agricultural lands with irrigation
– Both men and women are active participants
– Local school teachers are members of the organization.
 Weakness
– Lack marketing expertise in cities.
– Lack access to credit
– Depend on intermediaries for transportation
– poor quality control of produce
SWOT for a Peasant Coop
 Opportunities
– Modern farm-market facilities have been developed in three towns.
– An NGO has organized a system of small credits for women.
– The county is building a secondary road between the coop location
and the main highway.
 Threats:
– A large food retailer is contracting with local peasants.
– Transportation intermediaries have access to local government
officers.
– Some peasants are selling their land to developers and out
migrating to large cities.
Caution!

 SWOT analysis can be very subjective. Do


not rely on it too much. Two people rarely
come-up with the same final version of
SWOT.
 Use it as guide and not a prescription.

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