The Favorability Quotient
SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or business venture. A SWOT analysis can be carried out for a ministry, campus, initiative or community. It involves specifying the objective of the ministry or project and identifying the internal and external factors that are favorable and unfavorable in achieving that objective.
The original business technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies. The degree to which the internal environment of the organization matches with the external environment is expressed by the concept of strategic fit.
A SWOT analysis includes four areas:
- Strengths – Uncover characteristics of a ministry or project that produce advantages.
- Weaknesses – Discover characteristics that place the ministry at a disadvantage.
- Opportunities – Determine elements that could be exploited to your advantage.
- Threats – Understand what elements in the environment could cause trouble for your ministry.