Detailed presentation
This section is structured as follows:
WHAT IS SWOT ANALYSIS? | |||||||||
What is meant by SWOT analysis? Definition General definition SWOT analysis (Strengths - Weaknesses - Opportunities - Threats) is a strategy analysis tool. For example, it combines the study of the strengths and weaknesses of an organisation, a geographical area, or a sector, with the study of the opportunities and threats to their environment. As such, it is instrumental in development strategy formulation.
In evaluation This tool is mainly used during the ex ante evaluation of programmes. SWOT analysis describes positive and negative aspects and identifies the factors in the environment which may positively or negatively influence projects. By so doing, this analysis reduces uncertainties and supports the strategy's improvement or its assessment. Various types of SWOT analysis Many adaptations and interpretations have emerged from the implementation of SWOT analysis. Some of its four components may vary with the needs of the analysis, such as supporting the planning of development schemes or analysis of the geographical areas, determining and validating strategies or ex ante evaluations. Thus, in addition to SWOT, other acronyms include:
Apart from the refinements induced by these acronyms, these analyses share the same objective and will not be distinguished in this methodology. |
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Where does the tool come from? SWOT analysis was originally used in the business field, where it is a highly structured model, combining a series of analytical tools which focus on the internal and external environment of the company.
Numerous summary charts, such as the one illustrated above, have resulted in many adaptations during the last 50 years (particularly for intermediary tools to prepare for SWOT analysis). . |
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WHY AND WHEN ? | |||||||||
. When is SWOT analysis appropriate for an evaluation? In ex ante evaluation SWOT analysis is commonly used for ex ante evaluations in European Union programmes. It supports the strategy planning process. It may also play a crucial role during the drafting of the Country Strategy Papers (CSPs) and their subsequent evaluation. During the progressive building of the evaluation methodology During the progressive building of the evaluation methodology, the drafting of a problem diagram is comparable to the process of determination of weaknesses and threats in SWOT analysis. The comparison of a problem diagram with an objectives diagram is a similar reflection process to that carried out during SWOT analysis. Therefore, this tool can be used during the methodology development stage, with a view to examining the strategy's relevance to the situation in the country under evaluation. When determining and checking strategic approaches SWOT analysis can be used to identify possible strategic approaches. Although originally designed for planning, this tool is used in evaluation to ensure that the implemented strategy is appropriate to the situation described in the analysis. Thus, it may either be used for:
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With which tools cant it be combined? With tools to prepare for the SWOT analysis For in-depth analyses, SWOT analysis is the result of the full or partial implementation of tools such as resources audit, analysis of best practice, and PESTEL analysis (Political, Environmental, Socio-cultural, Technological, Economic and Legal factors). SWOT's intermediate tools in geographical or sector evaluation
Other possible combinations
SWOT analysis is therefore very flexible and can easily be combined with other tools. |
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What is required for its use in country evaluations? Prerequisites The prerequisites for its use in country evaluations almost exclusively relate to the selection of the participants. To find out more about this topic, see the recommendations in the methodologies for interview and focus group. Overall, the most important questions to address are:
When these questions are satisfactorily answered, the evaluator should benefit from the SWOT tool's contribution to the analysis and conclusions. Examples of its use Although not taken from country evaluations, a >series of examples> provide details about SWOT implementation and findings, and as such, it may be of interest to evaluators. With a view to illustrating a similar context to country evaluations, the examples selected are mainly from countries and regions included in the scope of development assistance. |
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What are its avantages and limitations? Advantages Determination of a strategy or a programme SWOT analysis is a straightforward tool, which quickly underlines the adequacy (or inadequacy) of a strategy, in relation to the problems and issues under consideration. In evaluation When SWOT analysis is combined with strategic analysis of an ex ante evaluation, it supports decision-making and the incorporation of the strategic approaches within the evaluation. Limitations A subjective tool Even when the tool is well conceived, it remains subjective. Indeed, analyses provided by separate groups on a given topic can differ greatly (strengths for one group can be weaknesses for others). Thus, consensus should be found prior to the analysis completion. A simplistic tool Similar to all tools that result in a matrix, SWOT analysis is reputed to be simplistic in approach. Preconditions for SWOT analysis include:
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What are the preconditions for its use? The time span If conducted in a single location and with a limited number of participants (whose knowledge of the topic is precise), the analysis may benefit from a speedy implementation process. In this case, it will only need:
Conversely, if the analysis has to be more detailed (including the implementation of intermediary tools) and requires numerous participants, its time span may increase significantly. Human resources In addition to the participants, whose training concerning the methodologies is often completed during the session, a group moderator or a skilled facilitator is also strongly recommended. Financial resources The financial resources required to conduct a SWOT analysis fluctuate:
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The use of SWOT analysis in project evaluations A SWOT analysis comparing different periods of time can be used in project evaluations to determine the components of the project which should be strengthened in the future. . |
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HOW SHOULD SWOT ANALYSIS BE CARRIED OUT? | |||||||||
. How is the level of analysis chosen? An essential stage Determining the sector to which the SWOT analysis will be applied is required prior to its implementation. Various levels
Distinction between the SWOT's internal and external levels
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How should the session be prepared? Various approaches can be developed in SWOT analysis, from the simplest (a half-a-day-session with a limited number of participants) to the most sophisticated (an analysis resulting from the implementation of various strategy analysis tools prior to a SWOT analysis). Basics Prerequisites for the working sessions
Whatever the methodology, the preparation of meetings should include, as a minimum, documentary analysis and interviews with key resource people. This stage ensures that all the essential topics are covered. It also enables the evaluator to organise further discussions on important topics, which may not have been sufficiently developed by the participants during the sessions. Group selection Planning how to select the group, its size and its possible division into subgroups (thematic, regional, types of actors, etc.) is also crucial at this stage. The methodology for focus groups provides details about such a selection. |
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What is the role of the group moderator? Undertaking SWOT analysis without a group moderator and an executive secretary is almost impossible. The executive secretary can be selected from the participants (this is not always possible, however), but the evaluation team must include a group moderator. The moderator's role is paramount in the conduct of the session. Among other tasks, the moderator helps with:
In country evaluations, the ability to speak the local language is often required, and so local support may be needed. The moderator should also demonstrate the skills and qualities necessary for the conduct of a group and the implementation of a SWOT analysis. |
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How are the4 components slescted and studied? General rules Classification of the component of coubtry evaluation Strengths and weaknesses are internal elements of a country, over which it has a partial or total influence (for example, the level of the population's education and health). Opportunities and threats are external elements imposed on the country, over which, consequently, it has no influence (for example, customs barriers or drought). Methodology for the determination and study of the 4 components The sequence, and the way to determine and study the 4 components (strengths, weaknesses, opportunities, threats), may greatly differ, depending on the methodologies required by the agencies. SWOT analysis may be organised as:
Whatever the methodologies, the order of the components is not important when the methodology is adapted to the group. Thus, the moderator must be flexible, and adapt to the human, financial, time based and thematic constraints, without forgetting the objective, which is to answer the following questions:
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Study of the strengths How are strengths identified? Strengths are positive internal factors that are controlled by the organisation, or the country, and which provide foundations for the future. They may be:
Two complementary tools for in-depth analysis When the study of strengths needs to be deepened beyond the simple collection of the participants' opinion during the sessions, two tools can be used for further investigation. They are usually implemented to highlight the organisations' strategic capacities. Resources audit Resources audit may be implemented prior to a SWOT analysis. Usually, it focuses on physical resources (for example, natural, industrial or agricultural resources), human resources (organisation, level of education, availability, skills) and financial resources (state of the public finances, resources dependent on exports). Analysis of best practice Comparisons within a country between what is more or less efficient may support the identification of best practice and should be included in the list of the strengths in the SWOT matrix.
In programmes, internal comparisons should use indicators, such as the median cost per student who has completed primary school. Other techniques for identifying factors The list of components in the PESTEL analysis (Political, Environmental, Socio-cultural, Technological, Economic and Legal) may be used as a check-list, with a view to ensuring that all significant fields have been effectively studied. Limitation of this approach As the SWOT analysis is based on the participants' opinions, it is by nature subjective and qualitative. Sometimes, strength for one party can be a weakness for others. |
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Study of the weaknesses Questions determining the weaknesses
How are weaknesses identified? In contrast to the strengths, weaknesses are negative internal elements, which are controlled by the organisation, and for which key improvements can be made.
Complementary tools for in-depth analysis The strategy analysis tools used for in-depth study of weaknesses can also be used for the study of strengths. They highlight resources' difficulties and poor practices. They include:
Limitation of the approach Analysis of the weaknesses, even more than for the analysis of strengths, requires the collection of several points of view, and at least one of the following:
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Study of the opportunities How are opportunities identified? Opportunities are the external positive possibilities which can be taken advantage of in the context of contemporary strengths and weaknesses. They are often beyond the influence of a country, or at the margins (for example, the evolution of international consumers' taste concerning one of the country's commodities, the improvement of the economy in a "client" country, the increase of Internet trade).
A complementary tool for in-depth analysis: PESTEL analysis The PESTEL analysis is a strategy analysis tool, used to support an in-depth study of opportunities. The acronym stands for Political, Ecological, Socio-cultural, Technological, Economic and Legal fields. It can be used as a check-list, ensuring that the SWOT analysis has comprehensively studied all significant fields.
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Study of the threats How are threats identified? Threats are difficulties, impediments, or external limitations which can prevent or impede the development of a country, or a sector (for example, the industry). Threats are often beyond the influence of a country, or at its margin (for example, consumers avoiding national products which are economically important for the country, large increases in energy prices, general decrease in the development assistance).
PESTEL analysis: an in-depth analysis tool A PESTEL analysis may also support the in-depth analysis of threats, similar to the study of opportunities. |
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How can the SWOT's components be combined to develop a synthesis? Ranking of components The synthesis of studies is highly valuable because it enables the evaluator to connect SWOT components with others, beyond the determination of their content. The construction of a synthesis can only be efficient if the components have already been ranked, to select important matters and to omit matters of secondary importance. Connection between components This stage focuses on the strategies to maximise the use of information. The following chart highlights the relationship between SWOT components.
During this stage, the evaluator should systematically study all 10 possibilities presented in this chart, from information provided by the SWOT analysis. This task should ideally be carried out with groups during the sessions. |
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Debriefing of the analysis The debriefing of the SWOT analysis is usually presented as a table of 4 cells, describing the strengths, weaknesses, opportunities and threats. The evaluator should annex a complete report to this classical presentation, including:
Completion of the analysis The SWOT analysis is only a tool and, moreover, a subjective one. In a domain as wide as that of the strategies implemented at a country level, the evaluator should not underestimate the SWOT's limitations. It is impossible for a tool as straightforward as SWOT analysis to take account of all the actual situations, and assess all the connections between them. The evaluator should therefore remain pragmatic and use other sources of information and advice, to supplement the analysis of the situation and of the strategy. |
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EXAMPLES | |||||||||
BIBLIOGRAPHY |
General references
Specific references in country evaluations
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