The quickest way to introduce you to SWOT and Balanced Scorecard

SWOT Analysis: A common tool used in business studies and workplace contexts is the well-known SWOT analysis. SWOT can inform action and business development and help implement strategies, particularly in the workplace.

SWOT stands for “strengths, weaknesses, opportunities and threats” (Preston 2012, p.30). The framework categorised the internal and external aspects influencing a business in a particular period and gives an overview of its position over its competitors. SWOT provides a very strategic solution for evaluating businesses’ environment; it serves non-profits to assess the quality of the service offered and to identify the “foundations for the realisation” of organisational issues (Helms and Nixon, 2010).


Balanced ScoreCard: Since 1992, the performance management methodology of the Balanced Scorecard (BSC) has provided executives with a clear illustration for setting corporate strategies and organisational objectives (Kaplan and Norton 2004). The power of using BSC relies on the interpreter’s ability to use better the four perspectives within the framework and comprehend how their homogeneity contributes to the organisation as a whole (Kaplan and Norton, cited in Weinstein and Bukovinsky, 2009). These perspectives are, Customer, Business Process, Learning and Growth and Resources (Financial) Perspectives.

In the cultural sector, cultural entrepreneurs can also make smart use of this framework to gain valuable tools for managing the industry’s revolutionary changes. For non-charitable organisations, BSC can also serve as a guide for actionable measures of the charity’s strategic priorities – in other words, to help measure what matters – the charity’s impact.


Assessment Tool



SWOT Analysis

(Source: Business Queensland).

It-Useful to address business weaknesses, deter threats, capitalise on new opportunities and make the best out of your strengths.

-A useful tool to develop business goals and strategies.

-Does not prioritise issues.

-Does not provide alternative solutions to issues found.

-Only cover a particular stage of the issues.

It-Not reliable tool for identifying in-depth problems.

-Not all the information it produces is useful.

Balanced Scorecard

(Source: Kaplan and Norton, 1996).

-Provides a clear strategy view and reporting.

-Easy way of collecting data.

-Support a complete view of business concepts.

-Can be useful to discuss how a company deal with business challenges.

-Can be a misleading solution if used only for balancing KPIs.

-Lacks evaluating external factors (e.g., competitors).

-Does not analyse risks.

Source: Top PNG
Source: PNG

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