How to turn Threats derived in SWOT Analysis to an Opportunities?

Calendar October 10, 2009 | Posted by lmfoong

 

 

In a typical template used by SWOT Analysis, it outlined four important factors. There are as follows:-

  1. STRENGTHS;
  2. WEAKNESSES;
  3. OPPORTUNITIES AND
  4. THREATS

In my previous post, I have illustrated how weaknesses are taken as opportunities. In this article, I like to point out some of the common scenarios for NOT taking THREATS identified in the SWOT Analysis Template. One of the reasons for these behaviors is that fact that the Threats identified were not validated hence it is not taken seriously. The possible cause could be due to the source of identifying the Threats. This is because brainstorming was used is a common tool to get ideas for the SWOT Analysis Template. Since it is via brainstorming, it is non factual yet.

On the other hand, if the Threats factors were derived using the PEST Analysis, then it is a better chance that the Threat factors derived are more realistic and factual. The main reason is that you should used announce or unannounce news about Political; Economic; Social and Technological.  Of course, there is aways an element of change but for announced factors such as those above, decision made normally will carry out. ( Unless, there is an outcry from the community group or life threatening issue).

Let’s examine the following example of THREATS derived from a SWOT Analysis Template:-

Example A:

THREATS: Certain community group is objecting the setting up of a factory on a piece of state-owned land near their neighborhood

How could this Threat turn into an Opportunity?

Assuming you agreed and willing to take up the challenge to turn the THREATS into an Opportunities. Then you need to spend time to understand the underlying concerns by the community group. The concern could consist of the followings:-

  1. Lost of fresh (green) environment
  2. Traffic congestion endanger safety
  3. Pollution
  4. Lost of income (e.g from farming)
  5. Perceived lost of power from the community head

The way I broke down the concerns raised by the community group is an essential step to understand the root causes of the THTREATS.  Many a time, we deal with issue on the surface and given up too soon because it seems to be too complex to deal with. When you have drilled down the issue into deeper level into root causes, the big issue now became smaller issues and hence give a clearer picture how to deal with them. Keep as objective as possible at all times. You must begin with an approach that the Threats were arised not for the purpose objection but it affects the livelihood of the community.

Once you have successfully established the root causes, the next logical step is to address all these root causes as complete as possible to ease the concern by the community group. Your solution to these root causes must be carried out with negotiation with the community group. The solution could end up could be in the form of alternative or even compensation. of course the best solution must be a win-win situation and it may end up some compromising solution between two parties.

Of course, you have to do an cost-and-benefit analysis if you were to spend time and money to resolve all the above conerns. After, an investment is a business decision for profitability in the long run.

then it is a better chance that the Threat factors derived are more realistic and factual. The main reason is that you should used announce or unannounced news about Political; Economic; Social and Technological.  Of course, there is always an element of change but for a announced factors of the above, decision made normally will carry out. (Unless, there is outcry from the community group).

Let’s examine the following examples of THREATS derived from the SWOT Analysis Template:-

Example A:

THREATS: Certain community group is objecting the setting up of a factory on a piece of state land near their neighborhood

How could this turn into an Opportunity?

Assuming you agreed and willing to take up the challenge to turn the THREATS into Opportunities. Then you need to spend time to understand the underlying concerns by the community group. The concern could consist of the followings:-

  1. Lost of fresh (green) environment
  2. Traffic congestion endanger safety
  3. Pollution
  4. Lost of income (e.g from farming)
  5. Perceived lost of power from the community head

The way I broke down the concerns raised by the community group is an essential step to understand the root causes of the THTREATS.  Many time, we deal with issue on the surface and given up too soon because it seems to be too complex to deal with. When you drill down the issue into deeper level into root causes, the big issue now became smaller issue and hence give a clearer picture how to deal with it.

Once you have successfully established the root causes, the next logical steps is to address all these root causes as complete as possible to ease the concern by the community group.  It could be in the form of alternative or even compensation. You must begin with an approach that the Threats were arisen not for the purpose objection but it affects the livelihood of the community.

Of course, you have to do a cost-and-benefit analysis if you were to spend time and money to resolve all the above concerns. After, an investment is a business decision for profitability in the long run

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