SWOT ANALYSIS

Academic Critique of SWOT Analysis Tool

Academic Critique on SWOT Analysis Tool

Introduction

In order to be thoroughly able to critique the SWOT analysis tool, it is important to understand the whole mechanism behind it. A SWOT analysis can be simply defined as an effective tool used to identify the Strengths, Weaknesses, opportunities and threats for an individual, group, unit or organization. A Swot analysis provides in depth understanding about past inconveniences and devises solutions while also identifying opportunities within the market that can be availed (University of Minnesota, 2008, p.2). Looking into each element individually:

Strengths

These are the internal factors that might help gain a competitive advantage over others for instance for any start up business being aware of the market and industry is a huge strength.

Weaknesses

Internal issues that need to be dealt with, if not they might prove to be a hindrance in the success of the company for example for any new start ups lack of experience is a weakness.

Opportunity

The external factors that can be availed in order to improve business, for instance identifying loan packages for start ups or a new market to enter.

Threats

Threats are external elements that can directly affect a business, example would be new government laws or regulations that harm the image of the company, increase in unforeseen competition (University of Minnesota, 2008, p.2).

History of SWOT Analysis

Albert Humphrey, a student of Stanford University generated a research project in the 1960's which developed the TAM (team action model) which helps a company deal and predict changes. The SWOT analysis is considered to have originated from this research and Humphrey's 'Stakeholders concept and SWOT analysis'. Apart from the ones mentioned there are no further contributions that Humphrey is accredited to. Various other researchers have further applied innovations to the original idea. Igor Ansoff, Wheelan, Hunger and King are all further contributors to the development of the SWOT analysis (Friesner, 2010, p.1).

Discussion

The SWOT analysis is to this day the most widely used strategic analysis tool simply because of its simplicity and ease (Leigh & Watkins, 2009, p.123). Though the tool has various pros and cons:

Benefits of SWOT Analysis

SWOT analysis is an extremely versatile tool, since it may be applied to an organization, different departments, teams and even individuals and can identify areas that need improvement. It can also be used to help understand an acquisition or partnership, evaluating a product against a certain brand. In order to create a SWOT analysis; thorough brainstorming sessions are conducted, which helps understand various internal elements that can be improved as well as external areas that can be availed. The analysis remains the same for evaluating any process (Henry, 2008, p.117).

The SWOT can be applied as a whole tool or certain elements can be considered individually. For example certain areas may be considered to further improve the situation of the company, an awareness of the company's weaknesses such as the lack of trained employees can instantly be identified and fixed; an alternative course can be devised, like for instance outsourcing the task might become ...