Detailed Presentation - SWOT Analysis

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This section is structured as follows:
● What is SWOT analysis? (#anchor1)

● Why and when? (#anchor2)
● How should SWOT analysis be carried out? (#anchor3)
● Examples (#anchor4)
● Bibliography (#anchor5)
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.
For strategy, this approach takes into account internal and external factors, with a
view to maximising the potential of strengths and opportunities, while minimising
the impact of weaknesses and threats.
Rationale of SWOT analysis
Positive aspect Negative aspect
Internal factors Strengths Weaknesses
https://europa.eu/capacity4dev/evaluation_guidelines/wiki/detailed-presentation-19 1/16
External factors Opportunities Threats
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.
SWOT analysis belongs to the group of tools studying the relevance and possible
coherence of specific programmes or entire strategies.
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:
● SWOL: Strengths, Weaknesses, Opportunities, Limitations

● SWPO: Success, Weaknesses, Potentials, Obstacles
● SWAP: Successes, Weaknesses, Aims, Problems
● SOFT: Successes, Opportunities, Failures, Threats
Apart from the refinements induced by these acronyms, these analyses share the
same objective and will not be distinguished in this methodology.
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.
SWOT's implementation rationale in the strategic field

(extracted from "Stratégique" - Pearson France edition)
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).
They can be adapted to the type of analysis to be carried out (for a company, an
organisation, a geographical area or a sector) and to the context in which the
analysis is conducted (for example, a strategy definition in evaluation).
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.
SWOT analysis is also useful for project evaluations.
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:
● Ex ante evaluations, in order to determine or check strategic approaches

● Intermediary evaluations, in order to check the relevance of the programmes
under evaluation, and if required, their coherence
● Ex post evaluations, in order to check the relevance and coherence of the
strategy or the programme. Implementing a SWOT analysis is all the more
essential when this task was not undertaken during the development of the
strategy or the programme.
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 may be part of the implementation of a focus group

● It may complement organisation tools, such as problem diagrams
● It may be followed by tools closely related to programme management, such
as the BCG matrix (Boston Consulting Group)
SWOT analysis is therefore very flexible and can easily be combined with other
tools.
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:
● Who should be requested to participate in the analysis?

● How can a fair distribution of participants from interest groups, and a balanced
expression of opinions be ensured?
● How to avoid bias resulting from the influence of some groups over others?
● How many analyses should be undertaken to provide a satisfactory result?
● Where should these analyses be carried out (in the country under evaluation or
with the relevant authorities, at the European Commission)?
● What language should be used?
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.
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.
Moreover, distinguishing between internal and external factors may sometimes be
challenging.
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:
● The topic under consideration (a development project or a country strategy)

● The number of participants and groups which have been selected to undertake
the analysis (such as strategy designers, operators, and beneficiaries)
● The location(s) of the analysis (in Europe or in the country under evaluation)
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:
● A few days' preparation

● One day to gather the participants
● One day to complete the analysis
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:
● A straightforward analysis, conducted for the progressive building of the

evaluation, with a view to validating strategic decisions, is cost-effective.
● Conversely, a specific study during an ex ante evaluation, carried out to
support the determination of strategic decisions, is expensive, especially if it
includes travels to the country and several sessions.
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.
SWOT analysis can also enable stakeholders to undertake a study of the project's
context by themselves.
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.
This stage is usually straightforward for a company: the company represents the
internal factor, whereas the market, the competition and the company's
environment represent the external factors.
Conversely, in development assistance, this stage is a precondition to ensure the
participants' full understanding of the questions addressed to them.
Various levels
● If the focus of the analysis is the agency (for example, the European
Commission), the object of the internal analysis is the agency, while the object
of the external analysis is the country.
● If the main object of the analysis is the country, the internal analysis focuses
on the country while the external analysis focuses on neighbouring countries
and the rest of the world.
● If the object of the analysis is a sector, every action carried out in this sector
constitutes an internal factor, and the rest represent external factors.
Distinction between the SWOT's internal and external levels
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.
The availability of a problem diagram is extremely helpful during the preparation
stage.
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.
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:
● Conducting the sessions

● Reporting the participants' contributions to the session
● Marshalling common ideas
● Distinguishing internal components (strengths and weaknesses) over which the
organisation may have an influence, from external components (opportunities
and threats) over which it has none

● Ensuring a thorough approach, without avoiding issues
● Supporting a "realistic" approach, particularly when dealing with weaknesses
● Conducting and fostering debates, with a continuous flow
● Providing an analysis, as short and straightforward as possible, including the
classification of factors by their relative importance
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.
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).
Some authors classify these components differently, and deliberately drift from the
original definition. They convey a current notion of strengths and weaknesses
(they may be internal or external), and a future and prospective aspect to
opportunities and threats.
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:
● A completely oral session, or a session including a part dedicated to each

participant's written contribution, prior to the synthesis
● Brainstorming, or a very structured session depending on a precise process
● A study carried out by individuals, pairs or groups
● A study undertaken by only one group, or multiple studies conducted by
different groups which are followed by a synthesis of the groups' findings
constructed during a plenary session, and by the drafting of a single SWOT
matrix
● A study conducted without a definite framework, or a study developed from
pre-established questions, or problems and issues to which the group should
pay particular attention
● Thematic studies (strengths, weaknesses, etc.) completed by a multi-thematic
synthesis
● A sequenced study of the components (strengths, weaknesses, etc.), or a

study putting emphasis on the components' links (strengths with weaknesses,
and opportunities with threats)
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:
● What is the role of the SWOT analysis in the ongoing evaluation?

● Has the goal been reached with the methodology selected?
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:
● Fields you can be proud of (a valuable educative or judicial system, civil society
participating in national debates)
● Well managed fields (a fair educational level provided to the population or
some of its segments, a high level of exports, well-managed public finances)
● Available and accessible resources (waters full of fish, abundant and easily
exploitable minerals, fertile soils)
● Expertise recognised by other organisations or countries (reputation of a
country in which labour is abundant and efficient, an attractive country)
● Geographical proximity to a partner (at the border of Europe), or to
commercial networks (countries with harbour infrastructures located on
important sea routes)
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).
It is important that "unique" resources (if any) are identified. They represent a
real advantage for the country (for example, a higher educational level compared
with neighbouring countries').
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.

Indicators are provided to facilitate comparisons:
● Between thematic levels (for example, the percentage of girls attending school,
of vaccinated children)
● From a general point of view (human development indicator, Millennium
Development Goals Indicators)
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.
Some evaluators complete the analysis by ranking strengths factors, in order to
distinguish topics of high interest from less interesting ones.
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.
Study of the weaknesses
Questions determining the weaknesses
● What do we do inadequately and what can we improve?

● What do our competitors do better than us?
● What should we avoid?
● What do we lack that we can control?
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.
They may be:
● Poor practices (poor management of budgets, lack of civil society's

participation in public decision making)
● Fields amenable to improvements (lack of infrastructure, very low level of
schooling)
● An unflattering image (tourist infrastructure reputed to be below average
despite efforts to improve them)
● Specific lack of resources (brain drain or financial capital exported)
● An unfavourable geographical location or a lack of natural resources
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:
● Resources audit
● Analysis of best practice
● A list of the components included in a PESTEL analysis, used as a check-list to
ensure that all significant fields have been effectively studied
● Problem diagram. If included in strategy papers or programmes implemented
in the country, the problem diagram should be used for the development of the
weaknesses analysis component in the SWOT analyses.
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:
● Strategy designers and programme managers

● Beneficiaries
● Representatives of the country, and of a foreign country (if possible)
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).
They may be:
● Expanding economic fields in which the country can market its expertise (for
example, increase in demand for manufactured products in European countries,
strong demand for the type of tourism proposed by the country)
● Difficulties in a competitor country which can become opportunities to expand
its share of the market
● New multilateral agreements easing the flow of goods and people
● Important priorities of certain donors supporting the development of specific
sectors (for example, increase of the women's economic empowerment ratio)
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.
These 6 themes are used as a guideline for the preparation of the sessions.
Examples are given below for each elements:
● The political field: nature of specific international agreements, political

stability in neighbour countries and trade partner countries, existing conflicts
having an impact on the country

● The ecological field: nature of specific international agreements, evolution of
the climate, pollution of international waters
● The socio-cultural field: nature of specific international agreements, socio-
cultural differences with neighbouring countries, high level of immigration,
delocalisation of the labour force
● The technological field: evolution of exchanges on the Internet, the relative
importance of air freight comparing to sea freight, external technological
innovations threatening local production or expertise
● The economic field: nature of specific international agreements, evolution of
the commodity prices, evolution of the economy in customer or partner
countries
● The legal field: nature of the international agreements and conventions
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).
They may include:
● Recessive economic fields affecting vital productions for the country (tourism,
specific farm productions)
● The development of fierce external competition for products (specific
agricultural production, manufactured products)
● International agreements limiting the exchanges of goods or people (obstacles
to employment in a neighbour country)
● Climatic change (global increase in temperature) and its consequences (rising
sea level)
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.
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.
Summary chart of the 10 possibilities provided by the SWOT analysis
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.
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:
● The methodologies used to prepare the sessions, select the groups, and to
conduct the sessions
● A study of the SWOT's limitations (for example, a group was not able to
intervene because of the presence of another group)
● A study of possible opinion gaps between groups (for example, beneficiaries as
opposed to managers)
● A description of SWOT's final outcomes (for example, any strategic approaches
identified by the analysis)
● The report's annexes, which should comprise a list of the participants and their
professional status, the findings of any intermediary stages (for example, a
SWOT analysis conducted with different groups of actors, or a thematic SWOT
analysis)
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.
EXAMPLES
● Examples (/capacity4dev/evaluation_guidelines/minisite/en-geographic-thematic-and-other-
complex-evaluation/examples)
BIBLIOGRAPHY
General references
● Exploring Corporate Strategy, Gerry Johnson and Kevan Scholes.

● "Stratégique", Gerry Johnson, Kevan Scholes et Fréderic Fréry. Edition Pearson
France.
● Means Collection.
Specific references in country evaluations
● "SWOT analysis of Pension Schemes Administration in Selected African

Countries", the World Bank, February 2002. [EN]
(/capacity4dev/evaluation_guidelines/document/swot-analysis-pension-schemes-administration-selected-
african-countries)
● "SWOT analysis for the participatory research in the Pacific". Tellus

Consultants.
● "Analyse SWOT", Ex ante evaluation of the Interreg programme III France-
Italy, paragraph 5, Alcotra, October 2000, p.72-87.
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Evaluation Unit DEVCO
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15 November 2017
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14/12/2020 Detailed presentation | Capacity4dev

This section is structured as follows:

● What is SWOT analysis? (#anchor1)

WHAT IS SWOT ANALYSIS?

What is meant by SWOT analysis?

SWOT analysis (Strengths - Weaknesses - Opportunities - Threats) is a strategy

Rationale of SWOT analysis

Positive aspect Negative aspect

Internal factors Strengths Weaknesses

External factors Opportunities Threats

Various types of SWOT analysis

Many adaptations and interpretations have emerged from the implementation of

● SWOL: Strengths, Weaknesses, Opportunities, Limitations

Where does the tool come from?

SWOT's implementation rationale in the strategic field

WHY AND WHEN ?

When is SWOT analysis appropriate for an evaluation?

SWOT analysis is commonly used for ex ante evaluations in European Union

During the progressive building of the evaluation methodology

During the progressive building of the evaluation methodology, the drafting of a

When determining and checking strategic approaches

SWOT analysis can be used to identify possible strategic approaches. Although

Thus, it may either be used for:

● Ex ante evaluations, in order to determine or check strategic approaches

With which tools cant it be combined?

SWOT's intermediate tools in geographical or sector evaluation

Other possible combinations

● SWOT analysis may be part of the implementation of a focus group

What is required for its use in country evaluations?

Overall, the most important questions to address are:

● Who should be requested to participate in the analysis?

Examples of its use

Although not taken from country evaluations, a >series of examples> provide

What are its avantages and limitations?

Determination of a strategy or a programme

When SWOT analysis is combined with strategic analysis of an ex ante evaluation,

Preconditions for SWOT analysis include:

● The topic under consideration (a development project or a country strategy)

What are the preconditions for its use?

If conducted in a single location and with a limited number of participants (whose

● A few days' preparation

Conversely, if the analysis has to be more detailed (including the implementation

In addition to the participants, whose training concerning the methodologies is

The financial resources required to conduct a SWOT analysis fluctuate:

● A straightforward analysis, conducted for the progressive building of the

The use of SWOT analysis in project evaluations

HOW SHOULD SWOT ANALYSIS BE CARRIED

How is the level of analysis chosen?

Distinction between the SWOT's internal and external levels

How should the session be prepared?

Prerequisites for the working sessions

Whatever the methodology, the preparation of meetings should include, as a

What is the role of the group moderator?

● Conducting the sessions

and threats) over which it has none

How are the4 components slescted and studied?

Classification of the component of coubtry evaluation

Methodology for the determination and study of the 4 components

● A completely oral session, or a session including a part dedicated to each

● A sequenced study of the components (strengths, weaknesses, etc.), or a

● What is the role of the SWOT analysis in the ongoing evaluation?

Study of the strengths