A closer look
A SWOT (strengths, weaknesses, opportunities and threats) analysis is a helpful tool for making improved portfolio business decisions. This article explains what a SWOT analysis is, shows how to plot and rank projects within a SWOT matrix, and describes how the tool can be used to evaluate the projects in a portfolio so that the most profitable ones can be supported at the most opportune time. A case study is presented, featuring Atlanta-based General Electric Power Systems (GEPS) and describing how a SWOT analysis was used to evaluate a large project into which much money and energy had been invested. The SWOT analysis revealed that the project was not a particularly good fit for the company at that time, and enabled executives to bring more objectivity to their business decisions about it.