Summative Assessment: SWOT Analysis
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SWOTAnalysisOverview.pptxHCS/499: SWOT Analysis Overview
Instructions: Click on the speaker icon on each slide to listen to the narration for the presentation or read the speaker notes.
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Welcome to this session on SWOT analysis.
As part of this week’s discussion on strategic planning we will review the purpose, process, and application of SWOT analysis.
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What is a SWOT Analysis?
SWOT stands for: strengths, weaknesses, opportunities, and threats.
It is a tool to identify and summarize strengths, weaknesses, opportunities, and threats of a strategic environment.
Tool is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s.
It divides factors into internal and external factors and positive and negative influences (Morrison, 2012).
© 2022 University of Phoenix
The acronym SWOT stands for strengths, weaknesses, opportunities, and threats and is used to identify and summarize these traits of a business environment. In our specific application, you will be evaluating these traits in relation to a hospital and its community environment.
This tool is credited originally to Albert Humphrey who was a researcher in the 1960’s at Stanford University. His team used this tool to focus their thinking on the most important factors that affected their environment.
These 4 characteristics of strengths, weaknesses, opportunities, and threats are divided in to internal and external factors and positive and negative influences.
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SWOT Analysis Example
Internal Factors
STRENGTHS
Technological skills
Leading brands
Distribution channels
Customer loyalty/relationships
Production quality
Scale
Management
WEAKNESSES
Absence of important skills
Weak brands
Poor access to distribution
Low customer retention
Unreliable product or service
Sub-scale
Management
Positive
External Factors
OPPORTUNITIES
Changing customer tastes
Technological advances
Changes in government politics
Lower personal taxes
Change in population age
New distribution channels
Negative
THREATS
Changing customer base
Closing of geographic markets
Technological advances
Changes in government politics
Tax increases
Change in population age
New distribution channels
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Both strengths and weaknesses are considered factors internal to the organization. Internal factors can be controlled by the business. For example, what we do well or where we excel, and where could we improve?
Opportunities and threats are external to the organization and are factors outside of the control of the organization. For example, a prime location to expand business has become available in the community, or a competitor has added a new service line of business to their organization. While we can react to the opportunity and threat, we cannot control it.
From a different perspective, strengths and opportunities are both positive factors to be considered, while weaknesses and threats are negative factors to address.
To summarize:
Strengths are internal attributes and resources that support a successful outcome.
Weaknesses are internal attributes and resources that work against a successful outcome.
Opportunities are external factors the project can capitalize on or use to its advantage.
Threats are external factors that could jeopardize success.
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Strengths
Positive tangible and intangible attributes, internal to the organization
Includes capabilities of the organization, staff competencies, financial resources, products and services, goodwill, and brand loyalty
Characteristics of the business that give it an advantage over others in the industry
Examples: Brand name, high quality scores, employee loyalty, and strong physician network
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Now let us look in detail at each facet of this analysis.
Strengths are positive tangible and intangible attributes, internal to the organization.
Strengths could include capabilities of the organization, staff competencies, financial resources, products and services, goodwill, and brand loyalty. Goodwill of an organization is the reputation and perception about the organization within the community.
Strengths are characteristics of the business that give it an advantage over others in the industry.
Examples of these strengths might include brand name, high quality scores, employee loyalty, or a strong physician network.
4
Weaknesses
Any characteristic that is a disadvantage compared to others in the industry
Characteristic or factor that does not meet the standard they should meet
Detracts from the ability to reach goals and influence growth
Examples: Limited financial resources, lower quality scores, lower patient perception of care, narrow physician network, aging equipment, and weak market image
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Weaknesses of an organization are any characteristic that is a disadvantage compared to others in the industry.
Weaknesses could include factors that do not meet the standard they should meet or detract from the ability to reach goals and influence growth.
Examples of weaknesses could include limited financial resources, lower quality scores, lower patient perception of care, narrow physician network, aging equipment, or a weak market image.
A strategic plan should create goals and actions that address these weaknesses and work to correct them.
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Opportunities
External, attractive factors
Market, competition, and technology or industry factors that could be leveraged as a positive growth factor for the organization
Examples: Financial boom for area, growth in market, new industries in region that would supplement business, and specialized physician group opening in region
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Opportunities are external, attractive factors in the competitive market.
These are market, competition, technology, or industry factors that could be leveraged as a positive growth factor for the organization.
Examples of opportunities could include financial boom for the area, growth in the market, new industries in the region that would supplement business, or a specialized physician group opening in the region.
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Threats
External factors that would cause a problem for the business and place the operation at risk
Any factor that puts the profitability of the organization at risk
Examples: New competitors in the market, changes in governmental regulations, and regional economic downturn
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Threats are external factors that would cause a problem for the business and place the operation at risk.
Any factor that puts the profitability of the organization at risk must be addressed in the strategic plan.
Examples of threats might include new competitors in the market, changes in governmental regulations, or regional economic downturn.
Note that threats cannot always be eliminated in a strategic plan, but must at least be identified so all stakeholders are aware that the threat exists.
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How Is a SWOT Analysis Conducted?
Determine the why: What is the purpose of the analysis?
Determine the who: Who are the stakeholders that should be involved?
Determine the how: Conduct research and information gathering.
Determine the where: Locate a non-threatening environment.
Compile your list and refine and carry it forward into the strategic-planning process.
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Given these 4 factors, how do we conduct a SWOT analysis?
First, we must have a clear vision of why we are performing the analysis. This vision will guide us in determining who will be involved and how information will be gathered.
The next step is to determine who will be involved. If this plan is for a smaller unit of an organization, such as a department, staff and management of that department would be included, and possibly some stakeholders from other areas. If the plan is for an entire organization, such as a hospital, stakeholders from that group, such as the governing board, administration, medical staff, and department managers might be included.
Information will need to be gathered to provide the stakeholders background on the organization and the current level of performance. This might include financial statements, quality measures, competitive market data, and current levels of technology.
You, as the facilitator of this process, would want to determine a comfortable, non-threatening environment where stakeholders could feel relaxed and engaged.
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After the List is Compiled
A free-form listing of thoughts of strengths, weaknesses, opportunities, and threats will be compiled based on brainstorming.
This listing must be sorted, and items given some priority.
Each section should be prioritized and limited to the top 4 or 5 factors.
The factors in each section can then be used to determine goals and objectives and the action steps to reach those goals.
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There are many brainstorming models and tools available to use in this process. Once a brainstormed listing of factors is identified, the team will need to narrow and refine the listing and then use that listing of factors in the remaining steps of the strategic-planning process.
The list would be sorted and prioritized to limit the listings to the top 4 or 5 factors in each category.
The factors in each section can then be used to determine your goals and objectives and the action steps to reach those goals.
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Thank you!
© 2022 University of Phoenix
I hope you have found this discussion of SWOT analysis beneficial.
To apply this information, review the material provided about your organization and begin brainstorming factors based on that information that would fit in a list of strengths, weaknesses, opportunities and threats. After you have completed your list, narrow your focus to the top four or five factors in each category and use this information to help develop your goals for the coming year in the strategic plan.
Do not hesitate to contact your course facilitator if you have any questions. Thank you for your participation.
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Reference
Morrison, M. (2012, July 28). History of the SWOT analysis (brief) [Originally SOFT analysis]. RapidBI. https://rapidbi.com/history-of-the-swot-analysis/
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