SWOT or SWOTT: What's the Difference?

One of the most fun aspects of getting a business degree is learning to look at things a little bit differently and the easiest way to learn to do this is to look at most decisions in terms of a SWOT analysis. Though this type of business memo was designed specifically to analyze how well a business might be able to compete, the same basic principles can be applied to almost anything. So what is a SWOT analysis and why do I sometimes see it spelled with a second T?

A SWOT analysis is designed to examine the strengths, weaknesses, opportunities and threats a business faces in its operating environment. In recent years, some universities have had students add another T to talk about the trends in the industry. While this is supposed to be a tool much like the balanced scorecard for evaluating business plans, the same idea can be used to evaluate most major decisions a person faces.

Strengths, according to a SWOT analysis, are internal. So, if you're evaluating the prospect of a new job, or actually doing a SWOT analysis for class, the first question is what are your strengths. For self-analysis, consider whether you work best alone or in groups. Are you a go-getter or more of a go along with crowd type? Knowing these things about yourself can help you figure out what type of job is best for you.

Weaknesses are also internal. In a business, these are things that are part of the way it operates that could be a weakness, like an old infrastructure or out of date computer software. For a personal SWOT analysis, weaknesses could be a lack of knowledge or an addiction to Facebook games.

Opportunities are external. For a business, these are the things that may make your business more successful but that you have little control over. For example, if your business is a mobile ice cream truck, a heat wave could be an opportunity. For the individual, an opportunity could be a training class, a new job opening or a referral from a friend.

Threats are also external and they block your chances for success. Personally, the poor economy might be a threat to getting the job you want. That's also a pretty significant threat for a business too.

Trends are just that, industry trends that could affect your business or your personally. If your ice cream business notes that more people are buying low fat treats, it might be a trend worth paying attention to. Likewise, when doing a personal SWOTT analysis knowing that medical careers are hot might help you find a better career.

Once you have completed your own personal SWOTT analysis, tweak your resume to highlight your strengths. In your application cover letter, talk about your understanding of opportunities and trends that the business faces and in the interview, when they ask that dreaded question about your weaknesses, know the answer without fumbling for it.