Goal of the method: The goal of the method is to identify the key internal and external factors seen as important to achieving an objective.
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1 Name: SWOT analysis General topic: specification of objectives Category: planning Short Summary: SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. Goal of the method: The goal of the method is to identify the key internal and external factors seen as important to achieving an objective. Activities / description: Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization. Strengths: characteristics of the business or project that give it an advantage over others Weaknesses: are characteristics that place the team at a disadvantage relative to others Opportunities: elements that the project could exploit to its advantage Threats: elements in the environment that could cause trouble for the business or project Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated. Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage. 1
2 Matching and converting One way of utilizing SWOT is matching and converting. Matching is used to find competitive advantage by matching 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 them. Internal and external factors SWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective. The factors come from within a company's unique value chain. SWOT analysis groups key pieces of information into two main categories: 1. internal factors the strengths and weaknesses internal to the organization 2. external factors the opportunities and threats presented by the environment external to the organization Analysis may view the internal factors as strengths or as weaknesses depending upon their effect on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses (distractions, competition) for another objective. The factors may include all of the 4P s (Product, Price, Promotion, Place / Distribution; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or in competitive position. The results are often presented in the form of a matrix. Strengths Weaknesses Opportunities Threats SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade its users to compile lists rather than to think about actual important factors 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 prudent not to eliminate any candidate SWOT entry too quickly. The importance of individual SWOTs will be revealed by the value of the strategies they generate. A 2
3 SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important. Expected outcomes and gained experiences / Use: The 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 organizations, 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. References / source: The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies. The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. 3
4 Example from the Strategic Plan that ANKA S.A. carried out for the former Prefecture of Karditsa. Strategic Plan for the promotion of cycling as an identity of Karditsa s Region Strengths Weaknesses 4
5 Occupies 27% of daily transportations in the city of Karditsa. Traditional bicycle is used by the residents. Transportation mean used by all ages, demographic and social groups. Favorable topography of the region - a wide area of lowlands Small distances in the town area Capability to develop multiple forms of cycling (sports, tourism, leisure, etc.) Capability to create special cycle routes in the mountains (there is already planning) Contribute to the health of users Increased use by students. Local authorities promote the use of bicycle tendency to increase the use from the local community. Existence of several studies are made for setting cycle infrastructure Organized notable events. Ability to create clusters among SMEs (the majority is in the tourism sector) Inadequate maintenance of existing cycling infrastructure Fragmented interventions - Lack of integrated planning. Lack of transport planning - traffic study of the city. Inadequate parking spaces. Inadequate marked bicycle paths. Lack of organized management structure development of cycling. Lack of promotion plans (marketing plan). Inadequate education / awareness activities. Inadequate handling of all users. Observed phenomena of theft in public places. Inadequate policing occupation of cycle spaces by other means of transportation. Lack of organized sports culture for the bike isn t able to promote similar business activities (eg workshops, bicycle racing). Lack of mapping and marking bike routes for leisure (eg routes in Lake Plastiras area). Inadequate promotion of cycling as a tourism product. Need to promote the action at central level and from there to enable a planning an advertising campaign. Insecurity from the businesses in the area of Lake Plastiras to give their guests outlets for leisure activities (eg cycling ) Lack of active local clubs / associations for bikers. Opportunities Basic principle the promotion of cycling in sustainable development policies. Combination with urban renewal policies. Funding from national and European resources Threats Lack of legislative framework (KOK) Lack of coordination and cooperation between the municipalities of the prefecture and organizations that are involved in designing future interventions 5
6 European Week for Sustainable Mobility Combination with other public transportation means (eg: train, buses). Exploiting natural environment (eg: Lake Plastiras). Combination with other forms of tourism Increased demand for multiple activities on the bike. Increased interest from clubs (sports, cycling, etc.) operating outside the borders Karditsa. Collaboration with neighboring municipalities. Consider the adoption of good practices (what has been done in countries / regions and are good examples). Competition from other forms of transportation. Engagement of agents without adequate knowledge of the subject focusing on the gain temporary profit. (eg: those proving mountain bike lessons or mountain guides etc.) 6
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