SWOT Analysis SWOTis anacronymfor Strength, Weaknesses,
Opportunities andThreats. It issometimes called situational
analysis SWOT is a technique for comparing or
matchinganorganisationsinternal
strengthsandweaknesseswithopportunitiesandthreatsfound in the
external enironment. It is a useful strategic planning tool for
ealuatingthe strengths, weakness, opportunities andthreats inoled
ina pro!ect or ina"usiness. SWOT analysis is "ased on the
assumption that if managers carefully reiewinternal
strengthsandweaknessesandexternal threatsandopportunities,
theycanformulate and select a useful strategy for ensuring
organisational success. StrengthThese are resources and
capa"ilities of an organisation that can "e used as a "asis
fordeeloping a competitie adantage. It is an important
organisational resource whichenhances an organisations competitie
position. Some of the internal strengths of anenterprise are#$
%istinctie competence in key areas.$ &anufacturing efficiency
like exclusie access to high grade natural resources.$ Skilled
workforce.$ 'dequate financial resources.$ Superior image and
reputation such as strong "rand names.$ Insulation from strong
competitie pressures.$ (roduct or serice differentiation.$
(roprietarytechnologysuchas patents andresultant cost adantages
fromproprietary know)how.Weakness '*weakness+ is a condition or a
characteristic which puts the organisation atdisadantage. The
a"sence of certain strengths may "e iewed as weakness.
Weaknessmakestheorganisationulnera"letocompetitiepressures.
Weaknessesrequireaclose scrutiny "ecause some of them can proe to
"e fatal. Some of the weaknessesinherent in pu"lic serice
organi,ations include#$ -o clear strategic direction.$ Outdated
facilities.$ .ack of management ision/ depth and skills.0$
Ina"ility to raise capital.$ Weak distri"ution network.$ O"solete
technology.$ .ow employee morale.$ (oor track record in
implementing strategy.$ (oor market image.$ 0igher oerall unit
costs relatie to competition reflected in#o a weak "rand nameo poor
reputation among customerso high cost structureo lack of access to
the "est natural resourceso lack of access to key distri"ution
channels, etc.Opportunities 'n *opportunity+ is considered as a
faoura"le circumstance which can "e utilisedfor "eneficial
purposes. It is offered "y outside enironment and the management
candecide as to how to make the "est use of it. Such an opportunity
may "e the result of afaoura"le change in the external enironment.
It may also "e created "y a productieapproach "y the management in
moulding the enironment to its own "enefit. Someof the
opportunities may include the following#$ Strong economy.$ (ossi"le
new markets and an unfulfilled customer need.$ 1merging new
technologies.$ 2omplacency among competing organisations.$ 3ertical
or hori,ontal integration. $ 1xpansion of product or serice line to
meet "roader range of customer needs.$ 4emoal of international
trade "arriers.$ .oosening of regulations, etc.It must howeer "e
mentioned that an organisation needs not necessarily pursue
morelucratie opportunities. 4ather it may hae a "etter chance at
deeloping acompetitie adantage "y identifying a fit "etween its
strength and upcomingopportunities.1Threats 2hangeintheexternal
enironment alsomaypresent threats toanorganisation.&anagement
should anticipate such possi"le threats and prepare its strategies
in sucha manner that any such threat is neutralised. Some examples
of threats include#$ Shifts in customer tastes away from the
organisations products or serice.$ 1mergence of su"stitute
products.$ -ew regulations. $ Increased trade "arriers.$ 1ntry of
lower cost foreign competitors.$ 2heaper technology adopted "y
rials.$ 4aising sales of su"stitute products.$ Shortages of
resources$ 4ecession in economy. $ 'derse shifts in trade policies
of foreign goernments.$ 'derse demographic changes.SWOT analysis
can help an organisation to formulate strategies that will
takeadantage of all these factors.SWOT Analysis in the Nigerian
Public ServiceSWOT analysis emerged in the 5678s from research at
Stanford 4esearch Instituteinto the failure of current corporate
planning methods 9.omax and 4oman, :88;oth the main operations as
well as the supportie
operationscontri"utetothealuecreationofanorganisationandtheseoperationsshould"eanalysed
in detail. 'lternatiely, if a particular operation is considered as
crucial "ecause it contri"utesmore to an organisations alue than
other operations, then it should "e analysed inmore detail. The
detailed analysis should coer such areas as serice deliery9customer
serice. External AnalysisThe external analysis element of SWOT
analysis is designed to identify opportunitiesand threats and is
diided into three different enironmental elements# The
generalenironment/ the competitie enironment and the financial
enironment.49i< General Environent!Social"#ultural Environent
Isthereanycurrent orfuturesocial trend9demographic, lifestyle,
fashion, etc< that could affect our "usiness negatiely
orpositiely 9threat or opportunityear in mind that opportunities
may "e time)limited and consider how theorganisation may make the
most of them.6. %ist ThreatsThreats are the opposite of
opportunities $ all the factors listed a"oe may, with a shiftof
emphasis or perception, also hae an aderse impact.0ere the
questions to ask include#$ What o"stacles do we faceA$ What are our
competitors doingA$ What resource pro"lem do we haeAThreats may
include#$ Hnemployment leels$ 1nironmental legislation$ 'n outdated
or o"solete product range.It is important to look at a worst)case
scenario. 0oweer, this should not "e allowedtofoster pessimism, "ut
shouldrather "eseenasaquestionof
consideringhowpossi"ledamagemay"elimitedor eliminated. &ost
external factors areinfactchallenges,
andwhetherstaffperceiesthemasopportunitiesorthreatsisoftenaalua"le
indicator of morale.58. Evaluate %iste- I-eas against
Ob.ectivesWith the lists compiled, sort and group facts and ideas
in relation to your o"!ecties.2onsider which of the factors listed
are of ma!or importance and which are negligi"le.Itmay "e
necessaryforthe SWOT participantsto selecttheir
fiemostimportantitems from the list in order to gain a wider
perspectie.The key to this process isclarity of o"!ecties, as
ealuation and elimination will "e necessary to cull the wheatfrom
the chaff. 'lthough some aspects may require further inestigation
or research, aclear picture should start to emerge at this
stage.55. #arry 0our 'in-ings 'or1ar-&ake sure that the results
of the analysis are integrated into any su"sequent planningand
strategy deelopment. 4eisit your findings at suita"le interals to
check that theyare still alid.10What Public Service &anagers
Shoul- Avoi- When #on-ucting SWOT analysis$ Ciing undue weight for
opinions which are not hard eidence.$ Ignoring the ideas of
participants at lower leels in the organisationalhierarchy.$
'llowing the process to "ecome an exercise in "lame laying or a
ehicle forcriticism and recrimination.$ Seeing SWOT analysis as an
end in itself and failing to integrate the resultsinto su"sequent
planning.#onclusion an- )ecoen-ationIn todays organisational
context, performance has assumed a piotal role in the faceof rapid
changes in the domains of glo"alisation and technology. To surie,
grow andsucceed in achieing their o"!ecties pu"lic enterprises in
-igeria must "ecome awareof their strength, weaknesses,
opportunities and challenges. This can "e achieed "yusing SWOT
analysis in performance management decisions. In the -igerian
pu"lic serice, annual "udgets and annual performance ealuations
areused in managing performance)outcomes and "ehaiour. These deal
with the past andnot futuristic. The use of SWOT analysis framework
can help improe enterprisesefficiency, effectieness and
sustaina"ility. This will turn around the -igerian pu"licserice and
ena"le it to achiee the national goals and remain an influential
institutionand as an instrument of pu"lic serice deliery and
deelopment.-eertheless, while useful for reducing a large quantity
of situational factors into amore managea"le profile, the SWOT
framework has a tendency to oer)simplify thesituation"yclassifying
theorganisationenironmentinto categories inwhich theymay not always
fit. The classification of some factors as strengths or weakness or
asopportunities or threats is somewhat ar"itrary. (erhaps what is
more important thanthe superficial classification of these factors
is the organisations awareness of themand the deelopment of a
strategic plan to use them to its adantage.Iniewof
theexpected"enefits of SWOTanalysis, werecommendthat pu"licserice
organi,ations should take adantage of this management tool to
improe ontheir oerall performanceandsericedeliery. SWOTanalysis
will exposetheseorgani,ations to their strengths, weaknesses,
opportunities and threats so as to assist11them to take eidence
"ased decisions a"out strategies that will focus on
effectielyachieing their core mandates and
isions.12)e/erences'kinade, O. S. 9ed
