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

S.W.O.T. Analysis Strengths Opportunities Weakness Threats Factors Internal to Organization 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”. Back to Design

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.