Be Careful with SWOT Analysis. Issues and Risks of SWOT

      
			              Best Practices
			            
							              36

		            		Bernhard Keim
Business Consultant, Germany
			            
Be Careful with SWOT Analysis. Issues and Risks of SWOT

	          		I am not that happy with SWOT Analysis. My issue does not concern the tool itself, but the way it is often used. People like to make some statements with it, but the list in each of its quadrants can be endless. Everything is true, but what does really matter from all the points listed? So be careful with cherry picking (giving selective attention to particular things) to draw conclusions from a SWOT-Analysis.

Here's an example of what I mean. Let's think about the situation of a horse shoe manufacturer 110 years ago:

Strengths: how did it help you to be the best horse shoe manufacturer?
Weaknesses: did it make a difference for your future, that your marketing was weak?
Opportunities: there were a lot of competitors you could buy for little money.
Threats: there are automobiles coming up, but how can these loud and unreliable vehicles affect the business?

If you had been the boss of such a company: what might your reaction have been?

Now think of today: are you sure that your company is not acting like the horse shoe manufacturer? Too often SWOT makes people think more sophisticated, but inside the box.
				      
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										              4

						            	Jaap de Jonge
Editor, Netherlands
												
				                Risks of SWOT Analysis: Biases

													I agree Bernard. Giving selective attention to particular findings and then drawing conclusions base... Sign up
				              
										              6

						            	James Antwi
HR Consultant, Ghana
												
				                How to Avoid Biases in SWOT Analysis

													Quite often SWOT is used for generating a ''shop list'' of strengths, weaknesses, opportunities and ... Sign up
				              
										              7

						            	Dr. Alan Williams
Professor, Thailand
												
				                Be Careful of SWOT Analysis

													I insist that all my department managers attend every senior management meeting and also I insist th... Sign up
				              
										              3

						            	David Stehlik
Professor, United States
												
				                History Exonerates the Horseshoe Company

													Bernhard makes a great point. His concern can be covered by an approach encouraging strategic foresi... Sign up
				              
										              4

						            	Johannes Crol, Switzerland
												
				                Use Trends for External Analysis!

													I don't like opportunities and threats as implicitly they contain the strengths and weaknesses.
Ins... Sign up
				              
										              7

						            	Charles Alter
Consultant, United States
												
				                Use SWOT as a Starting Point

													I have successfully used SWOT analysis as a starting point for big picture strategic planning and sm... Sign up
				              
										              4

						            	Murali Sundararaju
Coach, India
												
				                SWOT Analysis Using Collective Intelligence

													Great comments by everyone and great learning.
I see many other versions being mentioned such as SO... Sign up
				              
										              1

						            	Connie James
Professor
												
				                Avoid Strategies in SWOTs

													I agree if you anchor opportunities in industry trends and data (not firm-specific strategies), it w... Sign up
				              
										              2

						            	Musagwiza
Manager, Zimbabwe
												
				                SWOT Analysis is not Complete on Itself

													I agree this tool should be used in combination with other tools like Porter’s 5 Forces, Scenario Pl... Sign up
				              
										              2

						            	Connie James
Professor
												
				                Reduce Bias in SWOT

													The 1-2 page SWOTs we do, have ±50 citations that show the variety and quality of sources, forcing o... Sign up
				              
										              1

						            	Trevor Hudson
Consultant, United Kingdom
												
				                Use SWOT in Combination with Other Tools

													In my view, for all the reasons outlined above, SWOT should absolutely not be used as a decision mak... Sign up
				              
										              2

						            	Gregory McGuire
Business Consultant
												
				                SWOT is a Summary Tool

													I use SWOT Analysis as a summary tool. Merely using the tool to fill out the quadrants is a recipe f... Sign up
				              
										              3

						            	Huw Morris
Management Consultant, United Kingdom
												
				                A SWOT Needs to Be Informed by Other Analysis

													I have seen very few insightful SWOT analyses. Those that were helpful were informed by other analys... Sign up
				              
										              3

						            	Jeny
Partner, China
												
				                Very Often, SWOT Analysis Becomes a Formality

													I have seen many SWOT analyses become a routine and formality in companies that does no good while r... Sign up
				              
										              2

						            	Bernhard Keim
Business Consultant, Germany
												
				                SWOT Analysis Provides Little Gain for Strategy

													SWOT Analysis just tells you what you should know anyhow. It is not strategic, but might deliver som... Sign up
				              
										              4

						            	Johan Bergstroem
HR Consultant, Sweden
												
				                SWOT Step 2 Threat Assesment

													I agree with @Bernhard Keim, SWOT is basically but a list of threats, etc.
This is where the work s... Sign up
				              
										              2

						            	David Stehlik
Professor, United States
												
				                How many hours, on average, such SWOT report takes to compile?

													@Connie James:  Thanks. That's a great distinction. I have a follow-up inquiry.
High, medium, and l... Sign up
				              
										              4

						            	Chris Hoe
Director, Australia
												
				                SWOT a Primitive Tool, but…

													@Bernhard Keim: Analysis is done to tell you what you don't know. That is what research is all about... Sign up
				              
										              1

						            	Augusto Carreira
Partner, Portugal
												
				                Frankly, it Entertains a Lot!

													I once worked as a Business Unit Director for a large multinational whose top management decided it ... Sign up
				              
										              2

						            	Pedro Ferrao
Teacher, Portugal
												
				                SWOT Follow-up: Intersecting SW with OT

													In order to find strategies and actions, you must intersect the internal components (SW) with the ex... Sign up
				              
										              1

						            	Charles Alter
Consultant, United States
												
				                Determining SWOT Priorities

													@Connie James:  Excellent approach and a way of forcing prioritization for SWOT topics. This would h... Sign up
				              
										              0

						            	Eyad
Manager, Jordan
												
				                Uncertainty and SWOT

													I have a similar point of view. I see that round table discussions including variety of industry rel... Sign up
				              
										              3

						            	najib mohammed Saif
Turnaround Manager, Yemen
												
				                SWOT is Just a First Step, Not the Final One

													Thank you Mr Bernhard for your SWOT advice.
@All: Remember a SWOT analysis is not the final step, b... Sign up
				              
										              0

						            	Pradeep Sinha
Management Consultant, India
												
				                Combining SWOT with PESTLE

													I have found that SWOT combined with PESTLE gives a better perspective and is more comprehensive. Or... Sign up
				              
										              2

						            	Maurice Hogarth
Consultant, United Kingdom
												
				                GIGO & SWOT Analysis

													Processes are designed for rational use. As long as those who use them have an emotional stake in th... Sign up
				              
										              3

						            	Connie James
Professor
												
				                Hours Needed for a Well-researched SWOT

													@DSTEHL: In reply to your question, ±10 hours for an expert who knows the organization and 20 or mor... Sign up
				              
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		                            More on SWOT Analysis:
		                          
													            	Summary
													            
												              Discussion Topics
												            
		                          	👀Be Careful with SWOT Analysis. Issues and Risks of SWOT
WHEN to do a SWOT Analysis?
Opportunity or Threat?
Significance of SWOT Analysis. Strengths
Application Areas of SWOT Analysis
How to Turn Competitor's Weaknesses Into Opportunities
Internal Opportunities and Threats?
Combining SWOT with other Strategy Tools
SOAR Analysis
SWOT or TOWS Matrix?
How to Proceed after the SWOT Analysis to the Strategy?
🔥Internal and External Factors in SWOT Analysis
Be Careful with Viewing Industry Opportunities as Company Opportunities
SWOT Analysis for British Airways and Ryan Air
SWOC Analysis versus SWOT Analysis
SWOT Analysis as a Brainstorming Technique
Assigning Weights in SWOT Analysis
SWOCC Analysis
Competitive Analysis with SWOT
Divide and Conquer Approach to SWOT
Involve Stakeholders in SWOT Analysis

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