How To Do SWOT Analysis

SWOT analyses are used when decisions need to be made. Executives, supervisors and managers utilize them when they have a business problem with many moving parts, uncertainty and/or constraints. A SWOT analysis objectively evaluates and documents the strengths, weaknesses, opportunities and threats the situation presents.

Instructions

From Problem to Presentation

1. The need to have a SWOT analysis comes from knowing you have a business problem or situation that needs researched, analyzed and documented. For example, if a director of marketing is about to launch a line of commercials, he may order a SWOT analysis to test the effectiveness of these commercials. The director of marketing needs to be able to convey to subordinates that a SWOT analysis needs commissioned to verify the effectiveness of a line of commercials.

2. A consulting firm ideally should be hired to complete a SWOT analysis regarding the line of commercials. It’s important to realize that commissioning a SWOT analysis from outside agencies is critical to receive objective feedback. If marketing departments internally produce SWOT analyses, there is a higher chance of bias and subjective feedback being reported.

3. The next stage of the process is the consulting firm researching the company and line of commercials. The firm may take three to six months to collect all the necessary data and information. It is important to realize this step is the most important step in the process to insure the most accurate results. If poor research is completed, the implications of the results become questionable. The firm will investigate the internal strengths, internal weaknesses, external potential opportunities for growth and external potential threats to growth, regarding the launch of the commercials and company as a whole.

4. The strengths documented should be internal positive features about the line of commercials and the company, such as clear messaging, experienced marketing infrastructure and pre-negotiated ad rates. The weaknesses cited should be internal negative features about the line of commercials and the company, such as small budgets, high production costs or small distribution outlets. The opportunities documented should be features in the business environment that are advantageous or beneficial to the commercials or company. Examples include a differentiated product, a growing economy or weak scatter market. The threats documented should be features in the business environment that are detrimental or harmful to the commercials or company, such as similar campaigns already running, a rapidly-changing target demographic, or new Federal Communications Commission (FCC) regulations.

5. Consulting firms utilize SWOT analyses to supplement their written reports and support their recommendations. SWOT analyses are two-by-two spreadsheets, where the strengths are cited in the top-left corner, weaknesses in the top-right corner, opportunities in the lower-left corner and threats in the lower-right corner. SWOT analyses are typically inserted into presentations, utilizing Microsoft PowerPoint, to convey an informational and persuasive presentation.

References

• CPS: SWOT Analysis Examples
• Undertaking a SWOT Analysis
• University of St. Francis: SWOT Analysis