OVERVIEWWhat is it?SWOT analysis is a strategic analysis tool for use in context analysis. The acronym refers to the domains it considers: Strengths, Weaknesses, Opportunities and Threats. It combines an assessment of the strengths and weaknesses of an organisation, geographical area or sector with assessment of the opportunities and threats posed by the environment. Show What can it be used for?SWOT analysis considers internal and external factors to maximise the potential of strengths and opportunities, while minimising the impact of weaknesses and threats. When can it be used?SWOT analysis is particularly relevant in context analysis as a complement to PESTEL. However, it can be used for many purposes during implementation (e.g. to make strategic choices if changes in the context are identified) or evaluation to ensure that the implemented strategy is appropriate to the situation described in the analysis. Who can use it?
What are its strengths?
What are its limitations?
PRACTICAL APPLICATIONKey elementsSWOT analysis follows four key steps: Step 1: Clearly define the scope and objectives of the analysis. In context analysis, the scope and objectives may be defined during the programming phase, and SWOT analysis may follow conduct of a PESTEL (or similar) analysis. Step 2: Determine scope of the analysis along the four dimensions. SWOT analysis implies an assessment of opportunities and threats based on evaluation of contextual factors. Planning its focus, size and possible sub-divisions (by theme, types of actors, etc.) is critical. The sequence and methods to determine and study the four dimensions (strengths, weaknesses, opportunities, threats) may greatly differ. See Table 1. Table 1: Factors to consider in SWOT
Source: Adapted from SWOT analysis. Capacity4Dev – EuropeAid. Evaluation Methodological Approach. Evaluation Tools. Step 4: Use SWOT findings to inform the intervention's logic. In context analysis, the final step consists of moving toward the design of a specific intervention, building it so it is rooted in the context and in line with the EUD country mandate. RequirementsData/information. Regardless of the specific methodology applied, preparation of a SWOT analysis should include, at a minimum, documentary analysis and interviews with key resource people. Time. The time needed will vary widely depending on the SWOT's scope and already available data and information. A minimum of two weeks is generally needed to gain an understanding of the macro environment. Skills. N/A Facilities and materials. N/A Financial costs and sources. If external expertise is required, funds should be made available to cover the costs associated with fees (for approximately two to four weeks), travel expenses and logistics. These funds may come from the project itself or through other EC instruments such as a framework contract or a technical cooperation facility. Tips and tricks RESOURCESWhere to find itThe European Commission. Evaluation Unit from EuropeAid. SWOT analysis. Evaluation Methodological Approach. Evaluation Tools. Complementary guides, methodologies and toolsUNICEF, 2015. SWOT and PESTEL.Understanding your external and internal context for better planning and decision-making. United Nations Development Group (UNDG), 2017. Common country analysis. UNDAF Companion Guidance. What is the process of SWOT?A SWOT analysis is a tool for documenting internal strengths (S) and weaknesses (W) in your business, as well as external opportunities (O) and threats (T). You can use this information in your business planning to help achieve your goals.
Which is part of a strengths weaknesses opportunities and threats analysis?SWOT stands for: Strength, Weakness, Opportunity, Threat. A SWOT analysis guides you to identify your organization's strengths and weaknesses (S-W), as well as broader opportunities and threats (O-T). Developing a fuller awareness of the situation helps with both strategic planning and decision-making.
What are the 4 terms in a SWOT analysis?Use a SWOT (strengths, weaknesses, opportunities, threats) analysis to grow your business. A SWOT analysis is a compilation of your company's strengths, weaknesses, opportunities and threats.
What is a SWOT analysis used for?A SWOT analysis will help you identify areas of your business that are performing well. These areas are your critical success factors and they give your business its competitive advantage. Identifying these strengths can help you make sure you maintain them so you don't lose your competitive advantage.
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