A recent study showed that U.S. children are continuing to fall behind in the global education rankings, placing 19th in the world in the latest report. Let's hope those same researchers don't get around to ranking our SWOT analyses efforts any time soon.
Like most things utterly familiar, SWOT analysis has been taken for granted to the point that it has become perhaps the most misused tool in the manager's box. A good SWOT analysis is one of the cornerstones of good strategy. A half-baked SWOT analysis (and most of them are) prevents businesses from realizing their full potential and weds them to mediocrity. Let's look at what it takes to move from doing a SWOT analysis nearly right to doing it exactly right-a difference which can jumpstart your strategy.
Behind the acronym
SWOT analysis is one of the most effective and universally used models in business. Developed in 1971, it provides a simple yet comprehensive method for examining the strategic fit between a firm's internal capabilities (strengths and weaknesses) and external possibilities (opportunities and threats). The acronym SWOT stands for Strengths, Weaknesses, Opportunities, Threats.
Strengths and weaknesses are internal factors we generally have control over. Opportunities and threats are external factors that we can influence. The SWOT analysis model helps us answer two fundamental questions:
1. What do we have (strengths and weaknesses)?
2. What might we do (opportunities and threats)?
Below are the criteria and guidelines for each of the four categories. The word "group" is used as a general representation for a company, division, business unit, brand, etc. depending on the appropriate application.