How to perform a SWOT analysis
The SWOT matrix was first developed in the 60s in Business Administration from American schools. Two professors from Harvard Business School, Kenneth Andrews and Roland Chirstensen created the SWOT analysis, later applied by various scholars from other universities. The letters came from the first letters of words Strengths, Weaknesses, Opportunities and Threats. SWOT analysis has two different readings, one outside and one inside. The external (outsite) analysis examines the opportunities and threats, referencing the market and competition where the company is located. The internal (inside) analysis refers to the strengths and weaknesses, what the company's strength and its weakness before the competition.
Then, we build the SWOT matrix, in order to know the situation of an undertaking to subsequently managers define strategies for the achievement of organizational goals, building strategic plans, business plans or projects.
Being a stage of the decision-making process, SWOT analysis should be used after the setting, rectification and confirmation of the organization's mission.
Step 1: List of strengths and weaknesses and the opportunities and threats, and may use various techniques such as brainstorming, the nominal group technique, focus groups, questionnaires, interviews. The information provided should be recent and free. The sources must be reputable and devoid of prejudice or influences that can distort the analysis.
Step 2: Fill the array with the forces that the working group set.
Step 3: Validate the matrix, relating the various factors raised to identify critical aspects. Compare each strong point how much he has or is influenced by each threat and opportunity. Compare each Weak Point or how much it has influenced every Threat and Opportunity.
Step 4: Calculate in that quadrant should focus actions and give the diagnosis to the customer.