SWOT Analysis in Construction Projects
Developed by Maria Kylafi
Contents |
Abstract
SWOT analysis is a significant tool for strategic planning, especially useful in the stage of identifying strategies, in order to eliminate uncertainty and risks. It shall apply for situational analysis, through which it can adapt its internal structure, activities and processes to the economic environment in the selection and project management process.(1) The main factors that are taken into consideration when implementing a SWOT analysis are the internal components (strengths and weaknesses), as well as the external components (opportunities and threats). The matrix that is created can be used within an organization or for the implementation of a project as a way to identify the strategic holes related with it, during the phases of planning, contracting and construction of the project. The example that is going to be used in order to portray the application of SWOT analysis is the case of Azzaro project in Serbia, both by the investor’s and the contractor’s perspective.
The following article aims to present the SWOT analysis method and framework, as part of risk management process and apply the theory into a real construction project, with emphasis in the different stakeholders’ perspective and approach of the project. Furthermore, the author’s reflections regarding the advantages and the limitations of this tool will be presented in order to highlight its crucial value in project management.
Introduction in SWOT Analysis
The method of SWOT analysis was initially intending to help organizations take into consideration and realize the factors associated with decision making. This method was presented in the 1960s by Albert Humphrey of the Stanford Research Institute, while conducting a study related to the identification of the root cause of consistent failure in corporate planning. Since the time it was introduced, SWOT has become one of the most useful tools for business owners and managers in order to have a clear view of the companies. (2)
In general, effective project management requires a development of a mission statement for the project, i.e. what is to be implemented, the goals and the desired outcome. (3) It is necessary to clarify in advance as well as during all steps of project implementation all the elements that have an impact on its effectiveness. Moreover, it is important that these elements such as time limitations, prearranged costs, quality standards are identifies, so that the issues arising are being addressed immediately by the project managers or the contractors.
SWOT-analysis examines the business organization and its project from the point of view of the external and internal environment. The strengths and weaknesses are connected with the internal environment, the opportunities and threats are connected with the external. (1)
