SWOT Analysis is a structured planning model for evaluating the Strengths, Weaknesses, Opportunities and Threats of a given organization or a project. The SWOT analysis draws on information and data from an environmental analysis, which is separated into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Thereafter, SWOT analysis informs on what an organization needs to do in order to attain its objectives as well as the obstacles to be overcome or minimized.
Project-based Organization
In a project-based organization, the company’s organizational structure is aligned around meeting the demands of each project or each major customer (Hobday, 2000).
Strengths
First, a project-based organization is intrinsically innovative because it develops and redevelops new organizational structures for achieving the goals of a particular project. Second, a project-based organization has the ability to deal with emerging trends in production and respond in a flexible manner to changing client needs (Hobday, 2000). Third, a PBO is relatively effective at incorporating varied types of knowledge and skill in addition to being able cope with most project risk and uncertainties associated with many projects. Generally, a project-based organization is best placed to manage increasing product complexity, rapidly changing markets, customer-centered innovation and market, cross-functional business expertise and technological uncertainty (Hobday, 2000).
Weaknesses
A project-based organization is intrinsically weak in instances where the matrix organization is strong. It is also not suitable for performing routine tasks as well as attaining economies of scale. The PBO structure is also neither appropriate for coordinating cross-project resources nor enabling company-wide technical development (Hobday, 2000). In addition, a project-based organization is also ill-prepared for promoting learning across the entire organization besides having the risk of working against the greater good of corporate strategy and/or business coordination.
Opportunities
A PBO enhances growth opportunities and greater chance for learning (Hobday, 2000).
Threats
The greatest threat to PBO is the often recurring tension or dilemma between the autonomy requirements of the people involved in the projects and their integration with both organizational and inter-organizational settings that require incorporation of project activities (Hobday, 2000).
Non-project-based organizations
Non-project-based organization incorporates all organizational structures which are not designed around projects (Duprey, 2010). The manager oversees a number of different department heads, each of whom is responsible for a single department performing a specific function.
Strengths
In a non-project-based organization, there is efficient allocation for all resources, especially for scarce specialty skills that would not be fully utilized in one project. A non-PBO is also most flexible for handling changing business needs or priorities (Duprey, 2010). There is also more sharing of information among team members. Such an organization is also able to select the most suitable personnel to work on a given project and the team is more dynamic in tacking problems in different ways.
Weaknesses
There are characteristic complex reporting relationships in non-project-based organizations due to many managers often involved (Duprey, 2010). Such an organization also takes a lot of time as communication and cooperation has to be coordinated among several functional and project managers.
Opportunities
The team has a chance of learning new skills quickly when addressing such issues as managing others and themselves (Duprey, 2010). The team members may also develop strong time management skills that help them meet work expectations of several managers.
Threats
An non-project-based organizations is often threatened by the potential conflict over resource allocation between project and line managers (Duprey, 2010). Also, there can be increased cost in instances where more managers are needed to manage project teams.
Reference:
Hobday, M. (2000). The project-based organisation: an ideal form for managing complex products and systems? Retrieved from: http://www.iei.liu.se/pie/teio04/filarkiv09/Artiklar%2Blitteraturseminarium/1.127440/Hobday.pdf
Duprey, R. P. D. (2010). Basis for project management and application development methodology. S.l.: Trafford On Demand Pub.
