week 2

Craig Halls. MBA, LAT/ATC, CEES, Column Editor

The SWOT Analysis: Simple, yet Effective Chadron B, Hazelbaker, ATC, CSCS, MPE • Gonzaga University

A ATHLETIC THERAPY companies look to review past performance and move toward their future, a variety of analytical tools can be used to help clear the muddled load of information. What information does the company need to move forward? Is it a good time to expand? What challenges lie ahead? A SWOT analysis can be an effective tool to gather information and help the company determine its current situation and develop a clear path to move forward,

SWOT is an acronym for the iriternal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing it,' The SWOT analysis relies on the assumption that a firm's internal resources (strengths and weaknesses) and external situation (opportunities and threats) must match in order for it to develop an effective strategy, Goodstein and colleagues^ present the SWOT analysis as a step of the performance audit during the strategic planning for a company. In order for the company to know its current status, managers need to be aware of what is occurring internally and externally to effectively plan, manage, and lead the business in the most effective and efficient manner,

Strenqths

Identifying a company's internal strengths is the first important step of the SWOT analysis, A strength is a resource advantage relative to competi- tors and the needs of the markets that a firm serves or expects to serve,' It might appear to be simple or intuitive to recognize the strengths of a therapy setting, but it is easy for the picture to become cluttered with competitive drives and self-criticism. How often is the focus on promoting what is going well in the company versus what needs to be improved?

Strengths need to be identified to help managers identify areas that are working, along with those that are not. Strengths need to be pro- moted (internally) and can be used as positive building points. Promote strengths and continue to build on them. Quite simply, do more of what is already being done well.

Weaknesses

A weakness is a limitation or deficiency in one or more resources or com- petencies relative to competitors that impedes a firm's effective perfor- mance,' Oftentimes, a true analysis ofthe weaknesses in an organization

(D Z006 Human Kinetio - A H 11(6), pp, 53-55

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is difficult. Employees fear honest discussions about weaknesses because these are typically viewed as negatives. Some employees connect the negatives personally with their positions, and these individuals feel they are viewed as failures. This might be especially true in the athletic therapy setting, which is built on the treatment and rehabilitation of competitive and highly motivated clients.

Weakness does not mean failure. By truly and hon- estly identifying the weaknesses in an organization or section of a company, managers can create plans to manage, control, change, or address the weak areas. If patients come into a clinic for an initial evaluation, but few return for follow-up care, somewhere along the line there is a weakness that needs to be addressed. Perhaps the athletic therapists are not communicat- ing to the patient or office staff the need for follow-up visits. Once this weakness has been identified the manager can work with the athletic therapists and office staff to improve communication, thus increas- ing return visits.

Opportunities

A company does not work simply within the walls of the office. There are numerous outside pressures that exist. With this in mind, one can conduct a SWOT analysis that not only includes the internal strengths and weaknesses but also will be used to examine the external opportunities and threats. These steps exam- ine the current business environment and attempt to predict the future in terms of competition, key trends, technology, staff availability, state and federal health- care regulations, and community economic issues.

An opportunity is a major favorable situation in a firm's environment,' Opportunities are the areas where the business can provide needed services in the larger community. One example is the opportunity to grow. Economic growth in an area seemingly unrelated to athletic therapy services might produce external opportunities for a company to grow. For example, if a high-tech company moves to town, creating new jobs and economic growth, an athletic therapy company might reap the benefits by simply having more poten- tial patients or clients. The athletic therapy provider in the area might be ready for growth through new insur- ance contracts, a therapy contract for worker injuries, or even by opening a new clinic near the high-tech company to provide services the employees can easily access around their work schedules.

Threats

Identifying threats can help managers plan and better handle problems that arise, A threat is a major unfavor- able situation in a firm's environment,' Threats can be broadly based and difficult to identify but can be thought of in terms of "what if" in strategy-planning sessions.

The human resources department might look at threats to hiring qualified staff. If there is a shortage of experienced sports-medicine professionals, how will the clinic respond if required to hire somebody within a short time frame? One suggestion is to develop "pool" or "on-call" staff, but even then a back-up plan needs to be in place.

Threats can be treated as opportunities for change and growth. As challenges arise, a plan should be developed to address those challenges in a way that the company not only survives them but also grows and prospers.

Conclusion

Figure 1 illustrates how a SWOT analysis can be used to assist in strategic planning. Cell 1 is the most favorable, whereas Cell IV is least desirable, T^ble 1 summarizes the key components of each cell,'

The SWOT analysis provides an ideal framework for managers because it is a simple yet accurate por- trayal of the firm. The best situation for a firm is to maximize strengths and opportunities while attempt- ing to minimize weaknesses and threats. The SWOT analysis is an important tool as managers in both large and small athletic therapy companies look to analyze their current operations while at the same time plan for the future.

Resources for additional information regarding the SWOT analysis are located in the references cited at the conclusion of this article, as well as in the fol- lowing:

• http://www,mindtools,com/pages/article/newTMC_ 05,htm#business

• http://www,quintcareers,com/SWOT_Analysis,html (This provides an individual assessment through a SWOT analysis,)

• Performing a SWOT Analysis (checklist), published by Chartered Management Institute

• Bradford RW, Duncan PJ, T̂ rcy B, Simplified Strategic Planning: A No Nonsense Guide for Busy People Who

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Critical internal weaknesses

Numerous environmental opportunities

Cell 3: Supports a turnaround- oriented strategy

Cell 4: Supports a defensive strategy

C e l l l : Supports an aggressive strategy

Substantial internal strengths

Cell 2: Supports a diversification strategy

Major environmental

threats

figure I SWOT-analysis diagram,'

TABLE 1. KEY COMPONENTS OF THE CELLS IN THE SWOT ANALYSIS

Cell Strategy

Growth-oriented strategy. There are several opportunities and numerous strengths that encourage pursuit of those opportunities.

Focus on strong resources and competencies to build long-term opportunities in more favorable product markets.

Attempt to eiimihate iriternal weaknesses so as to more effectively pursue the market opportunity.

Immediate strategies need to be implemented that reduce or redirect involvement in the products or markets examined through the SWOT analysis.

Want Results Fast. Worcester, Mass: Chandler House Press; 2000,

Column Editor's Note

This article by Mr, Hazelbaker comes at an interesting time as HealthSouth recently announced plans to sell their outpatient therapy clinics,' It will be interesting to see what, if any, effect this will have on athletic trainers and their employment in therapy settings. As evident throughout this article, the SWOT analysis serves as an exceilent tool for athletic trainers who might seize the opportunity to explore a career in the outpatient rehabilitation setting, I

References 1. PearceJA, Robinson RB Jr. Strategic Management: Formulation, Imple-

mentation, and Control. 7th ed. New York, NY: Irwin McGraw-Hill; 2000.

2. Goodstein L, Nolan T, Pfeiffer JW. Applied Strategic Planning: How to Develop a Plan That Really Works. New York, NY: McGraw Hill; i993.

3. HealthSouth. Press releases page. Available at: http://www.healthsouth. com/medinfo/home/app/frame?2 = article.Jsp,0,081406_repositioning. Accessed August 20, 2006.

Chadron Hazelbaker has worked for 8 years in outpatient physical therapy clinics in the inland Northwest in patient care and manage- ment. He is currently completing his PhD in leadership studies at Gonzaga University.

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