If you know your strengths, weakness, opportunities and threats,
you are prepared to succeed.
This sample SWOT analysis is based on the relatively new concept of SWOT. The definition of SWOT analysis is to evaluate the qualitative (non-number) aspects of strengths, weaknesses, opportunities and threats of a company or organization. The purpose is to determine if your organization is capable of taking advantage of an opportunity that has presented itself. The answer is only yes if you decide that your strengths are greater than your weaknesses and the opportunity is greater than the threats. The SWOT analysis sample shown here goes a step farther than the traditional SWOT analysis. It requires that you put numbers to these very nebulous concepts.
Let's assume that you are a small janitorial firm with 6 employees. Your company has been servicing 20-25 small business buildings in a suburban area. You have recently found out that a large office building nearby is looking for a new janitorial service. It would be a very lucrative contract, but you would have to triple the size of your company overnight to handle it. You don't want to jeopardize what you already have. Here is your SWOT analysis of the situation:
|1. What are your organization's core strengths?||Know how to do janitorial work well|
|2. What unique resources are available?||Have close relations with another janitorial company.|
|3. What strengths can be acquired?||Could contract with other janitorial companies to meet the load.|
|1. What are the perceived weaknesses?||Not experienced servicing large facilities.|
|2. What resources are inadequate?||Not enough manpower.|
|3. What weaknesses cannot be overcome?||Time conflicts with current contracts.|
|1. What is the value of the present opportunity?||The contract would be very lucrative.|
|2. Is value enhanced by evolving market-technology conditions?||There are many new office buildings being constructed.|
|3. Is value enhance by your organization's core strengths?|
|1. Are there market-technology conditions that reduce the value?||There are a limited number of available workers.|
|2. What is the level of competition?||Competion is moderate.|
|3. Will your weaknesses limit your success?||Must be able to find additional workers.|
After you have answered each of the questions, it is necessary to put a score or value to each answer. Pick a number from 1-10 that corresponds with your feeling of the value of each of the answers. These numbers are then entered on the calculator below. The result is a number that represents your judgement of the value of the new opportunity. Obviously the larger the number the more attractive the project is. Please remember that you are making subjective judgements of the values. The final number should be used as a guide for comparison with other projects and not an absolute.
Project Score = Strengths - Weaknesses + Opportunities - Threats
It is a simple manner to use the above sample SWOT analysis to your project. First answer the questions in the above sample. Score each answer in light of subject opportunity. Enter the scores in the sample calculator above. Print out the results. When you attach the answers and details of the project, you will have a basic assessment of whether you will likely succeed in your new endeavor. If you have several opportunities available, you can compare each of them using the above steps. You should then eliminate the weaker ones. The strong ones remaining can propel you to the success that you want.
This SWOT analysis example has shown you the value of this approach. The example showed that answering some simple questions about your situation and your opportunity can help you come closer to making a good decision. This process will work for you, because you can make small incremental judgements that add up to your overall assessment. Using this simple logical approach to evaluating new opportunities can help you better make wise decisions that grow your business.