SWOT and SMART Analysis: A Framework for Strategic Planning and Goal Setting | Lecture notes Job Interviewing Techniques and Skills

SWOT Analysis

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a

company's competitive position and to develop strategic planning. SWOT analysis assesses internal and

external factors, as well as current and future potential.

Strengths and Weaknesses focus internally on the business being evaluated, while Opportunities and

Threats look at competition and things going on externally.

Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh

perspectives, and new ideas.

SWOT analysis works best when diverse groups or voices within an organization can provide realistic data

points rather than prescribed messaging.

Strengths and weakness cover internal factors such as human resources, funds, infrastructure, and even

past experiences, both good and bad. Opportunities and threats relate to external factors such as

changing consumer trends, economic and political factors, and laws.

The findings of a SWOT analysis are often synthesized to support a single objective or decision that a

company is facing.

The purpose of performing a SWOT is to reveal positive forces that work together and potential problems

that need to be recognized and possibly addressed.

Components of SWOT Analysis

Every SWOT analysis will include the following four categories. Though the elements and discoveries

within these categories will vary from company to company, a SWOT analysis is not complete without

each of these elements:

Strengths

Strengths describe what an organization excels at and what separates it from the competition: a strong

brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge

fund may have developed a proprietary trading strategy that returns market-beating results. It must then

decide how to use those results to attract new investors.

Weaknesses

Weaknesses stop an organization from performing at its optimum level. They are areas where the

business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high

levels of debt, an inadequate supply chain, or lack of capital.

Opportunities

Opportunities refer to favourable external factors that could give an organization a competitive advantage.

For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing

sales and market share.

Threats

Threats refer to factors that have the potential to harm an organization. For example, a drought is a

threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats

include things like rising costs for materials, increasing competition, tight labour supply, and so on.

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SWOT Analysis SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential. Strengths and Weaknesses focus internally on the business being evaluated, while Opportunities and Threats look at competition and things going on externally. Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and new ideas. SWOT analysis works best when diverse groups or voices within an organization can provide realistic data points rather than prescribed messaging. Strengths and weakness cover internal factors such as human resources, funds, infrastructure, and even past experiences, both good and bad. Opportunities and threats relate to external factors such as changing consumer trends, economic and political factors, and laws. The findings of a SWOT analysis are often synthesized to support a single objective or decision that a company is facing. The purpose of performing a SWOT is to reveal positive forces that work together and potential problems that need to be recognized and possibly addressed. Components of SWOT Analysis Every SWOT analysis will include the following four categories. Though the elements and discoveries within these categories will vary from company to company, a SWOT analysis is not complete without each of these elements: Strengths Strengths describe what an organization excels at and what separates it from the competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to attract new investors. Weaknesses Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital. Opportunities Opportunities refer to favourable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share. Threats Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labour supply, and so on.

Matrix-model-in-SWOT-analysis

Achievable SMART Goals A SMART goal must be achievable and attainable. This will help you figure out ways you can realize that goal and work towards it. The achievability of the goal should be stretched to make you feel challenged, but defined well enough that you can actually achieve it. Ask yourself:

Do I have the resources and capabilities to achieve the goal? If not, what am I missing?
Have others done it successfully before? Realistic SMART Goals A SMART goal must be realistic in that the goal can be realistically achieved given the available resources and time. A SMART goal is likely realistic if you believe that it can be accomplished. Ask yourself:
Is the goal realistic and within reach?
Is the goal reachable, given the time and resources?
Are you able to commit to achieving the goal? Timely SMART Goals A SMART goal must be time-bound in that it has a start and finish date. If the goal is not time- constrained, there will be no sense of urgency and, therefore, less motivation to achieve the goal. Ask yourself:
Does my goal have a deadline?
By when do you want to achieve your goal? For example, building on the goal above: On August 1, I will obtain a gym membership at my local community center. In order to be healthier, I will work out four days a week. Every week, I will aim to lose one pound of body fat. By the end of August, I will have realized my goal if I lose four pounds of fat over the course of the month. The Importance of SMART Goal Setting Often, individuals or businesses will set themselves up for failure by setting general and unrealistic goals such as “I want to be the best at X.” This goal is vague, with no sense of direction. SMART goals set you up for success by making goals specific, measurable, achievable, realistic, and timely. The SMART method helps push you further, gives you a sense of direction, and helps you organize and reach your goals. Johari window The Johari window is a technique designed to help people better understand their relationship with themselves and others. It was created by psychologists Joseph Luft and Harrington Ingham in 1955, and is used primarily in self-help groups and corporate settings as a heuristic exercise. The Johari Window is a psychological tool used to enhance self-awareness and interpersonal relationships. It divides personal awareness into four areas: Open Area: Known to self and others- Encourages sharing and feedback. Blind Spot: Unknown to self but known to others- Gaining feedback helps reduce this. Hidden Area: Known to self but not to others- Disclosure and openness can shrink this area. Unknown Area: Unknown to both self and others- Exploration and new experiences can help uncover this.

Practical Applications for MBA and Engineering students: Teamwork: Enhances collaboration by expanding the Open Area through feedback and self-disclosure. Leadership: Reduces Blind Spots by seeking and acting on feedback from peers and mentors. Networking: Builds stronger professional relationships by sharing more about oneself, reducing the Hidden Area. Personal Development: Encourages exploration and self-discovery to uncover Unknown Areas, fostering growth. Using the Johari Window, MBA students can improve communication, increase self-awareness, and enhance professional interactions. The premise behind the window is that there are certain things that we know and things we do not know about ourselves. Similarly, there are certain things others know and do not know. Thus, at any given point, our true self is a combination of these four “panes” represented by the Johari window. In the diagram, all panes look equal, but the size (or openness) of each pane will vary depending on how well: One knows oneself One shares about oneself with others Others know the person

SWOT and SMART Analysis: A Framework for Strategic Planning and Goal Setting, Lecture notes of Job Interviewing Techniques and Skills

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