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G12 STEM Entrep-SWOT-Analysis

SWOT analysis is a technique used to assess an organization's strengths, weaknesses, opportunities, and threats. It involves identifying internal strengths and weaknesses of the organization and external opportunities and threats impacting it. The analysis examines positive and negative internal factors (strengths and weaknesses) and external factors (opportunities and threats) to develop a strategy. Conducting regular SWOT analyses helps organizations evaluate their position and make well-informed decisions.

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Leo Suing
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362 views

G12 STEM Entrep-SWOT-Analysis

SWOT analysis is a technique used to assess an organization's strengths, weaknesses, opportunities, and threats. It involves identifying internal strengths and weaknesses of the organization and external opportunities and threats impacting it. The analysis examines positive and negative internal factors (strengths and weaknesses) and external factors (opportunities and threats) to develop a strategy. Conducting regular SWOT analyses helps organizations evaluate their position and make well-informed decisions.

Uploaded by

Leo Suing
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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SWOT

Analysis

S W O T
What is SWOT Analysis?

Acronym for Strengths,


Strengths Weaknesses, Opportunities, and
Threats.
Technique is credited to Stanford
University in the 1960s and
1970s.

Planning tool used to understand

Oppurtunity
SWOT Weakness
Strengths, Weaknesses,
Opportunities, & Threats

Analysis involved in a project / business.


Used as framework for
organizing and using data and
information gained from
situation analysis of internal and
external environment.
Technique that enables a group /
Threats individual to move from everyday
problems / traditional strategies
to a fresh perspective.
What is SWOT Analysis?

STRENGTHS

Characteristics of the business or a team


that give it an advantage over others in
the industry.
Positive tangible and intangible
attributes, internal to an organization.

Beneficial aspects of the organization


or the capabilities of an organization,
which includes human competencies,
process capabilities, financial
resources, products and services,
customer goodwill and brand loyalty.

Examples - Abundant financial resources,


Well-known brand name, Economies of
scale, Lower costs [raw materials or
processes], Superior management talent,
Better marketing skills, Good distribution
skills, Committed employees.
What is SWOT Analysis?

OPPORTUNITIES
Chances to make greater profits in the
environment - External attractive factors
that represent the reason for an
organization to exist & develop.
Arise when an organization can take
benefit of conditions in its
environment to plan and execute
strategies that enable it to become
more profitable.
Organization should be careful and
recognize the opportunities and grasp
them whenever they arise. Opportunities
may arise from market, competition,
industry/government and technology.
Examples - Rapid market growth, Rival
firms are complacent, Changing customer
needs/tastes, New uses for product
discovered, Economic boom, Government
deregulation, Sales decline for a substitute
product .
What is SWOT Analysis?

WEAKNESSES

Characteristics that place the firm at a


disadvantage relative to others.

Detract the organization from its


ability to attain the core goal and
influence its growth.
Weaknesses are the factors which do
not meet the standards we feel they
should meet. However, weaknesses
are controllable. They must be
minimized and eliminated.

Examples - Limited financial resources,


Weak spending on R & D, Very narrow
product line, Limited distribution, Higher
costs, Out-of-date products / technology,
Weak market image, Poor marketing skills,
Limited management skills, Under-trained
employees.
What
SWOT is- THREAT
ANALYSIS SWOT Analysis?

THREATS

External elements in the environment that


could cause trouble for the business -
External factors, beyond an organization’s
control, which could place the
!
organization’s mission or operation at risk.
Arise when conditions in external
environment jeopardize the reliability
and profitability of the organization’s
business.
Compound the vulnerability when they
relate to the weaknesses. Threats are
uncontrollable. When a threat comes, the
stability and survival can be at stake.
Examples - Entry of foreign competitors,
Introduction of new substitute products,
Product life cycle in decline, Changing
customer needs/tastes, Rival firms adopt
new strategies, Increased government
regulation, Economic downturn.
Aim of SWOT Analysis?

To help decision makers


share and compare ideas.

To bring a clearer
common purpose and
understanding of factors

S W for success.
To organize the
important factors linked
to success and failure in
the business world.
To analyze issues that
have led to failure in the
past.

O T To provide linearity to
the decision making
process allowing
complex ideas to be
presented systematically.
How to conduct SWOT Analysis?

1. Analyze Internal & 2. Perform SWOT Analysis 3. Prepare Action Plans


External Environment & Document
How to conduct SWOT Analysis?

1. Analyse Internal & External Environment


How to conduct SWOT Analysis?
How to conduct SWOT Analysis?

3. Prepare Action Plan

Once the SWOT analysis has been completed, mark each point with:

Things that MUST be addressed immediately

Things that can be handled now

Things that should be researched further

Things that should be planned for the future


Benefits & Pitfalls of SWOT Analysis

Benefits of SWOT Analysis

Benefits of
SWOT
Analysis

Knowing the Competition Forecasting


Reviews a company's competitors & Provides a variety of information
benchmarks against them to critical to forecasted variables.
configure strategies that will put Threats, for e.g., can impact a
the company in a competitive Decision Making Tool business's forecast. By
advantage. understanding the company's
Provides well-rounded
advantages & disadvantages,
information that prompt
forecasts will be more accurate.
well-informed decisions.
Benefits & Pitfalls of SWOT Analysis

Benefits of SWOT Analysis

Besides the broad benefits, here are few more benefits of conducting SWOT Analysis:

Helps in setting of objectives for strategic planning

Provides a framework for identifying & analyzing strengths, weaknesses,


opportunities & threats

Provides an impetus to analyze a situation & develop suitable strategies


and tactics

Basis for assessing core capabilities & competencies

Evidence for, and cultural key to, change

Provides a stimulus to participation in a group experience


Benefits & Pitfalls of SWOT Analysis
Pitfalls of SWOT Analysis

Can be very subjective. Two people rarely come up with the same final
version of a SWOT. Use it as a guide and not as a prescription.

May cause organizations to view circumstances as very simple due to


which certain key strategic contact may be overlooked.

Categorizing aspects as strengths, weaknesses, opportunities & threats


might be very subjective as there is great degree of uncertainty in market.

To be effective, SWOT needs to be conducted regularly. The pace of


change makes it difficult to anticipate developments.

The data used in the analysis may be based on assumptions that


subsequently prove to be unfounded [good and bad].

It lacks detailed structure, so key elements may get missed.


EXAMPLE:

Mc Donald’s SWOT Analysis


Mc Donald’s
SWOT Analysis INTERNAL

STRENGTHS WEAKNESSES

• Ranks very high on the Fortune Magazine's most • Failing pizza test market thus limiting the
admired list ability to compete with pizza providers.
• Community oriented • High training costs due to high turnover.
• Global operations all over the world • Minimal concentration on organic foods.
• Cultural diversity in the foods • Not much variation in seasonal products .
• Excellent location • Quality concerns due to franchised operations.
• Assembly line operations. • Focus on burgers / fried foods not on healthier
• Use of top quality products options for their customers.

OPPORTUNITIES THREATS
• Opening more joint ventures. • Marketing strategies that entice people from
• Being more responsive to healthier options. small children to adults.
• Advertising wifi services in the branches. • Lawsuits for offering unhealthy foods.
• Expanding on the advertising on being • Contamination risks that include the threat of
more socially responsible e-coli containments.
• Expansions of business into newly developed • The vast amount of fast food restaurants that
parts of the world. are open as competition.
• Open products up to • Focus on healthier dieting by consumers.
allergen free options • Down turn in economy affecting the ability to eat
such as peanut free. that much.
EXTERNAL

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