SWOT Analysis

SWOT Analysis What SWOT analysis? • Acronym for strengths, Weaknes, Opportunity ond Threats. • Planning tool used to undesstand Strength, cnesses, Opportunities and Threads, involved Weaknesses, Fin a project | busines Used using cas Jerome werk Jos organizing and and information gained Inom Situation amalyeis 9 internal and enternal ennison ment • Technique to mone Theat enables a group individual Inom every dery poroblems/ traditional strategies, to a veresh perspective, Strength • Charecteristics of the businen on a give it industry advom tage team that over others in the Positive Famegible and intes nas to om intangible attrib ciles zation corgonn ża • Benjival asperre I the capabilitus of om organization on the organization, which includes *humom competencies, porocen' caperbilities, susances iprodmota, and goodmill ond Sermce beremd loyer bly. Customes Eg: Abundant jinsiamcial resources, inell-know berend name, Economies I scale, homen cous [ raw material / processes], Superines memagent talent, Bettes marketing stulls, Good destibution stulls, Committed amployees. Opportunities Chances to ontes nal the grears on make greates porojits in the ene athadine Jactors that represent cerejami za tion to onist and develop. Jes om Acrise when ergernization Conditions execute more com take banget g in its ennisonment to plem && Strategies that enable it to become porojitable. • Oorgemization should be cenyul and recogn the opportunities and they arise grasp them whenever • Opportunities com avise Inom monket, Competition, Industry / gout & technology. Example: Rapid market growth, Rival Jerins one complacent, Chenging customes needs / Eenster, New cues Jos product discovered, Economis boom. Govt. de regulation, Sales decline fora Substitute product. Weaknesen Characteristics thout place the firm at a disadvantage relative to others. Detract the corganization from its ability to attaim the core Weaknesses one the Standards. goal and influence its growth. the factors which do not meet we feel they should meet However, weaknen One controllable. They may be minimized and eliminated Limited Jinancial R&D, very resoncies, weak sporiding on nanow product line, Limited distribution Lighes costs, Out-of-date produds technology Weak market image, Poor mar kling Undes I reuned. stulls, Limited management skulls, -employees. Threat elements in •Ext environment Jos the businen organizations that could caure trouble Ext. Jactom beyond control corganizations mission om which could place the os operation at risk. Put somthy in denyes • Aense when Conditions in the ext. env. jeopardize the reliabilly and porajitability g orgemizations businen. • Compound the vulnerability when they relate to the weaknemes. Threads are uncontrollable. When a Sunvival threat comer, the stability and cam be at stake 2. Busines Unit . when team has not met its tonget. Customer service Com be bettas. • Launching a new businen unit to pensive a new businen •New team leader is appceinted. 3. Company • When revenue, being achieved cost & expene tengets che not • Monket Shane is declining • Industry conditions are unjanounable • Launching a new businen ventime 4. Good & savico evaluation 5. Poroduct evaluation. 6. Brainstorming meeting. 9. Peroduct Counch 8. Strategic plemmig 9. Personal dev. plemming 10. Decision marting- !!. Diffectivenen is market How to conduct 1. Analyse indesnal & ext. envisonment 2. Perjan SWOT analyer & Document. 3. Peyom Action Plems. 2. Peyom SWOT analysis & Document Establish objedives - Purpose of conducting a SWOT may be wide/ nemow. 5) Select contributons - Expert opinion mary be requid Jes SWOT Allocate Research & Information gathering taslu - Background preparation com be corried out ins two stages Exploratory & Detouted. - - Information on Internal Jactors. Strengths & Meaknen - Focus - Information on opportunities & threat- external Jactons. Focus on d) Create a workshop emrisonment - Enco wage. an atmosphere conductive to the free Jhow of information. . List Strengths, weaknenes, Opportunities & thereals f). Evaluate listed ideas against Objectives. - with the lists. and ideas compiled, sort and group jach in relation to the objectimes. 2). Cony your Jindings Jenniond. - Make sue that the SWOT analysis is used In subsequent plemring, at suitable -inme Intervals. Revisit your Jinlings 3. Preponi Action Plam. Once the SWOT analysis has been completed, mank each point → Things that →Things that MUST be addrened immediately Com be handled now. Things that should researched Jurther. → Things that should be planned when the Juten. Benjits & Pitjale g SWOT Analysis Benjits • Helps in Setting objections for strategic plan • Provides analyzing a Inamework ses identifying & SW, O&T. • Peroides an impetus to analyze a situation E dove develop Suitabu Strategies Ep tactics Barvis Jos arsening. Cone Capabilities & competen • Evidemus jos, and cultural kay to change Provide a group experime Stimulus to participation in a Pit Jalls boud on Can be very subjective. Two people rarely Come up the Use it as a some final version of a swor guide and not as a prescription • May carme organizations to view ciscumstances. as very simple due to which cestam key Strategic contact may be overlooked.. •Categorizing aspects as S. W, O & T might be there is market. great chegree I hery subjective as iun centinity leck Lack of seareonen •To be effective, SWOT needs to be conducted regulenly. The pouey change djji cult to makes it anticipate developments... • The death cred in analysis may be bored on assumptions that subsequently perone to be unjounded. It buks dedailed structure so that key elements may get mised.