Personal Handbook of Creative Thinking Nov. 2013 | Page 6

SWOTANALYSIS
Strengths | Weaknesses | Opportunities | Threats
The SWOT analysis is a tool that is useful in assisting people to discover potential opportunities as well as
manage and reduce threats. It was first developed by Albert S Humphrey in the 1960’s and is considered as
useful now as it was when it originated. This tool, which is determined in a 2x2 grid can be applied to
various contexts and thus, assists individuals and groups in a number of ways (see figure 4). In a business
setting the SWOT analysis helps you set up a sustainable position in the market. In a personal situation the SWOT
analysis assists you develop your career, taking advantage of your abilities while considering your threats and
weaknesses.1
The benefits of the SWOT analysis are that it is a simple tool, has little or no costs and helps concentrate key
factors that are affecting you or your business. However it is important to realise that there are also some
limitations to this tool. Due to its simplicity, it is important to remember that is only covers one stage of the
process of planning and development. More in depth research and analysis is required further to the SWOT
analysis for more detailed issues. Furthermore, it is a specific tool, based on strengths and weaknesses, so if
certain issues are two sided then it becomes difficult to address certain issues. An example of this is if you have
a prominent location for your shop but the rent is expensive – both a strength and a weakness are prevalent.2
In conclusion the SWOT analysis tool appears useful for gathering, structuring and presenting information.
Since often a broad tool like this can produce several ideas it would be beneficial to use this analysis in
correspondence with another technique such as the problem reversal, to identify which outcome, when
analysed from a different perspective would be most suitable to the situation.

THOUGHT

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APPLICATION

This tool is a good template to use when having to make decisions
for various situations. While it doesn’t seem to make the decision
for you or stimulate ideas, it definitely appears useful in guiding
the process, by defining the problem and highlighting the pros and
cons. It is a simple procedure and a well mapped out grid that is
user friendly and easy to review. Since the SWOT analysis allows for
proactive thinking rather than relying on instinctive consequence
it is definitely useful to someone who struggles to make decisions
– like myself!

Figure 5: SWOT Analysis with its four elements in a 2x2 matrix.
CANDICE BURG | 3289728 | SDES0915 | CREATIVE THINKING CASE STUDIES | 2013

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