SWOT Analysis Explained Step by Step

Summary

This video explains how to conduct a SWOT analysis, a strategic tool used to assess strengths, weaknesses, opportunities, and threats. The video guides viewers through the steps, from setting up a team meeting, drawing the SWOT diagram, to asking key questions that evaluate internal and external factors. It emphasizes the importance of using SWOT analysis to identify solutions, align team strategies, and create action plans. The video encourages collaboration and suggests keeping the analysis visible for continued discussions. It's a useful tool for developing business strategies and making informed project decisions.

Takeaways

• 📊 SWOT analysis is a tool for developing a strategic plan by analyzing strengths, weaknesses, opportunities, and threats.
• 📈 Strengths and weaknesses are internal factors, while opportunities and threats are external factors.
• 🧩 A common layout for a SWOT diagram involves four blocks, each labeled with one of the SWOT factors.
• 🤝 SWOT analysis helps teams evaluate whether to start a project by visualizing its pros and cons.
• 💡 It encourages brainstorming, explores solutions to problems, and aligns teams to effective solutions.
• 📅 Step 1: Set a meeting with a clear description of the project to evaluate.
• 📝 Step 2: Draw four blocks on a large sheet of paper, each with a title representing a SWOT factor.
• 🏋️ Step 3: Fill the 'Strengths' block by asking what the team excels at and what valuable assets they have.
• 📉 Step 4: Fill the 'Weaknesses' block by identifying areas for improvement and potential problems.
• ⚡ Step 5: Focus on 'Opportunities' by identifying trends or opportunities the team is ready to take advantage of.
• ⚠️ Step 6: Analyze 'Threats' by examining what could block progress or pose critical risks.
• ✅ An action plan and follow-up are essential after completing the SWOT analysis to ensure progress and alignment.
• 🔄 The SWOT analysis should be regularly revised and kept visible to the team for ongoing discussion.

Q & A

What is a SWOT analysis and why is it important?

A SWOT analysis is a key tool used to develop a strategic plan by identifying strengths, weaknesses, opportunities, and threats. It helps teams evaluate the pros and cons of a project and decide on the best course of action.

What are the internal and external factors in a SWOT analysis?

Strengths and weaknesses are considered internal factors, while opportunities and threats are labeled as external factors in a SWOT analysis.

How should a SWOT diagram be structured?

A SWOT diagram is typically structured into four blocks, each with a title: Strengths, Weaknesses, Opportunities, and Threats.

What is the first step in conducting a SWOT analysis?

The first step is to set a meeting with the team and provide a clear description of the project that is being evaluated.

How should the 'Strengths' block be filled during a SWOT analysis?

To fill the 'Strengths' block, ask the team questions like: What do we excel at? What valuable assets do we have? What do we and our customers see as our main strengths?

What kind of questions should be asked when filling the 'Weaknesses' block?

When filling the 'Weaknesses' block, ask questions like: What could we improve? What problems could we face? What are the recent complaints we’ve received?

Why is transparency important when identifying weaknesses?

Transparency is crucial because acknowledging weaknesses candidly allows the team to address potential problems early. As Taiichi Ohno said, 'To have no problems is the biggest problem of all.'

What type of questions should be asked when identifying opportunities?

Ask questions such as: What opportunities can we seize? Are there any trends we are ready to take advantage of?

What are some key questions to consider when identifying threats?

Consider questions like: What could block our progress? Are our weaknesses potentially critical? Are economic conditions affecting our financial viability?

What is the final step after completing a SWOT analysis?

After completing the SWOT analysis, it's important to develop an action plan and set a follow-up schedule to ensure progress and adjustments as needed.