Monday, January 16, 2012

SWOT Analysis

Another important tool in the Business Analysts arsenal, used to quickly analyze various aspects of the business process or system undergoing change, is the SWOT Analysis
  • Strength
  • Weakness
  • Opportunities
  • Threats
Since a large part of my work has been in the corporate performance management arena, the SWOT Analysis is something I've used often as a framework for strategic planning, opportunity analysis, competitive analysis and business development. 

The steps to conduct a SWOT analysis are as follows:
  • Draw a grid or matrix
  • At the top of the grid/matrix, describe the topic or problem under discussion
  • Conduct a brainstorming session to complete each section of the grid
    • Strengths: any internal factor that the assessed group does well.  It may include anything such as effective processes, experienced personnel, low prices and customer relationships
    • Weaknesses: any internal factor that the assessed group does poorly (or not at all)
    • Opportunities: external factors that assessed group may be able to take advantage of, including new markets, new technology etc...
    • Threats: external factors that can negatively affect the assessed group, including entrance into a market of a new competitor, economic downturns etc...
  • Facilitate a discussion and analyze the results
  • Brainstorm potential solutions to solve the problem (compare strengths & weaknesses against opportunities & threats)

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