SWOT Analysis - An Application Issue

This SWOT Analysis article highlight an application issue pertaining to using SWOT Analysis in an actual environment.  It is about a comment posted by a reader who had given some valueable input to the topic.

As SWOT Analysis is an excellent tool, its usage can be very wide. Coomonly, it is incorporated into a Strategic Planning Process.  While in some incidence, I faced with similar difficulties as highlighted by the reader, it can be avoided if it is properly guided. In order to maximize the power of SWOT Analysis, all the four factors in SWOT should be well understood by all parties involved.

In this SWOT Analysis article, I share with you the comment submitted by the reader as follows:

The comment read as below (original text):-

I think the approach to SWOT by the author of the article is not adequate to formulate an effective business strategy, as he says that SW are related to internal and OT are related to external factors. Each of the components in SWOT should be related to both internal and external factors. Analyzing strengths and weaknesses merely based on internal operational factors is not enough, as there are perhaps more critical factors on strengths and weaknesses that a company should look into, analyse and focus on - like branding, market and products positions as compared to competitors, what the company see other competitor sand what others would see your company. On the other hand, opportunities and threats may consist of internal factors like talent acquisition and retentions, and the availability of talents as compared to the competitors.

To share with you my response to the comment as follows (original text):-

First of all, I like to take this opportunity to thank you and your group reading my article. The fact that the way my article was written purely based on sharing of knowledge. And due to limitation of article submission guidelines. 

I appreciate you took his time to point out the inadequacy the definition of  SWOT Analysis in my article and I agreed with him. Perhaps, I take this opportunity to share my thought as follows:-

a)  I consider SW as internal factors because it deal with capabilities of an organization. However, when deal with capabilities, a reference point is used. I normally use comparing with a benchmark such as competitors. In this case, you have rightly pointed out.

b)  I faced with similar situation when deal with the OT factor.  There are two school of thoughts i.e. consider OT as a pure external factor (like what I normally do) or alternatively, include them into internal as well.  Why I said that. Let’s consider this scenario:-

Scenario A: An organization is loosing talented employee and resulted in talent acquisition  

My thought on scenario A is below:-

I consider an organization not able to retain talented employee (for whatever reason) as an internal weakness. And I consider "talent acquisition" as an action rather than a factor.

I normally separate an action from the SWOT factors and consider these action items when I analysis the SWOT further. I do that with another tool called SWOT or TOWS matrix. ( sorry for not elaborate in more detail here)

I hope my explanation satisfy your member's view and looking forward to answer any other comments. 

Thanks and Best regards

In conclusion:-

This could be a typical situation you may faced when you perform a SWOT Analysis. This article should be taken as a case study and can be handy the next round you want to perform a SWOT Analysis. How the SWoT can be interpreted based on individual knowledge and application experience. the different in opinion will be much reduced if the SWOT factors are well understood by all parties.  This could be achieved if all parties go through a round of refresher course. At the end of the day, it is important that all members who are involved in the SWOT Analysis session have a common understanding.

 
Please check oout my blog SWOT Analysis Template to gain common understanding

 
Do you want to know how SWOT Analysis is used as in Strategic Planning Process? Then click at this link for immediate access  How to use SWOT Analysis in Strategic Planning in power point presentation

About the author

Dr. L M  Foong-PhD, is a TQM practitioner. He publishes TQM Articles, ebbok, case studies, trainer manual, facilitator guides and presentation slides. He can be contact at http://tqmcasestudies.com/ContactUs.html