Slide 1:SWOT Analysis 05 April 2008


What is SWOT Analysis? :What is SWOT Analysis? A technique that enables a group or individual to move from everyday problems and traditional strategies to a fresh perspective.


SWOT is an acronym for: :S – Strengths W – Weaknesses O – Opportunities T – Threats SWOT is an acronym for: Internal Environment External Environment


Strength :Strength Any existing or potential resources or capability within the organisation that provides a competitive advantage in the market. Example: Strong distribution network Intense Staff commitment and loyalty Increasing profit margin Activity #1: Can you identify some of your organisation’s strengths?


Weakness :Weakness Any existing or potential force which could serve as a barrier to maintaining or achieving a competitive advantage in the market. Example: Lack of a clear company strategy Lack of training opportunities for using a new software Activity #2: Can you think of some of your company’s weaknesses?


Opportunity :Opportunity Any existing or potential force in the external environment that, if properly leveraged, could provide a competitive advantage. Example: Organisation’s geographic location New technology Activity #3: Can you think of some opportunities available to your company?


Threat :Threat Any existing or potential force in the external environment that could erode a competitive advantage. Example: A new competitor entrant A recession, rising interest rates, or tight credit lines Activity #4: Can you think of some threats to your business?


Aim of SWOT Analysis :Aim of SWOT Analysis Take advantage of strengths and opportunities. Minimise weaknesses and eliminate threats


Who Needs SWOT Analysis? :Who Needs SWOT Analysis? A Company When revenue, cost and expense targets are not being achieved; Market share is dropping; Industry conditions are unfavourable; Want to launch a new business venture; etc


Who Needs SWOT Analysis? :Who Needs SWOT Analysis? A Department/Business Unit When the team has not met its targets; Customer service can be better; A new business unit to pursue a new business; A new team leader is appointed; etc


Who Needs SWOT Analysis? :Who Needs SWOT Analysis? Job Holder When supervisor has issues with work output; Assigned to a new job; New financial year – fresh targets; Job holder seeks to improve performance on the job; etc.


How to do SWOT Analysis? :A SWOT analysis is useful only when action plans and strategies are developed from the results How to do SWOT Analysis? Prepare Action Plans Analyse Internal & External Environment Perform SWOT Analysis and Document Step 1 Step 2 Step 3


Benefits of SWOT Analysis :Benefits of SWOT Analysis Solving problems Implementing change Developing strategies for achieving the organisation’s objectives and mission


Brainstorming – key ingredient for SWOT :Brainstorming – key ingredient for SWOT SWOT analysis will be useful if: You are thinking outside the box Availability of varied perspectives – group discussion Liberty to say your mind Willingness to break away from traditional methods Appetite for change


Some Brainstorming Rules :Some Brainstorming Rules


Activity #5: Sample Questions :Activity #5: Sample Questions


Activity #5: Sample Questions :Activity #5: Sample Questions


SWOT Worksheet :SWOT Worksheet


SWOT Worksheet :SWOT Worksheet


Activity #6: Strategies & Action Plans :Activity #6: Strategies & Action Plans


Activity #6: Strategies & Action Plans :Activity #6: Strategies & Action Plans


Debrief and Lessons Learnt :Debrief and Lessons Learnt Activity #7: Comments from Participants Homework: Do a SWOT analysis for your job. Invite someone to brainstorm with you.