SWOT-Analysis

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! SWOT Analysis S W O T Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. Instructions: Press “Previous” and “Next” buttons to move between Slides. Press “Esc” Key to Close the Presentation.

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SWOT Analysis Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Brainstorming & Prioritization in SWOT Analysis Learning Objectives What is SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Tips & Exercise for SWOT Analysis What is SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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SWOT Analysis Oppurtunity Threats Strengths Weakness Acronym for Strengths , Weaknesses , Opportunities , and Threats . Technique is credited to Albert Humphrey who led a research project at Stanford University in the 1960s and 1970s. Planning tool used to understand Strengths, Weaknesses, Opportunities, & Threats 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 / individual to move from everyday problems / traditional strategies to a fresh perspective . What is SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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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? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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OPPORTUNITIES What is SWOT Analysis? 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 . Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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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 is SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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SWOT ANALYSIS - THREAT ! ! THREATS What is SWOT Analysis? 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. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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SWOT Analysis Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Brainstorming & Prioritization in SWOT Analysis Learning Objectives What is SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Tips & Exercise Aim of SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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HELPFUL HARMFUL S W T O To help decision makers share and compare ideas. To bring a clearer common purpose and understanding of factors 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. Aim of SWOT Analysis? To provide linearity to the decision making process allowing complex ideas to be presented systematically. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Premium Membership Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo This is a DEMO Version. Become a Premium Member and Download Full Versions for all Powerpoint Presentations This Presentation contains 34 Slides in total. Premium Members can download Full Versions of All the Powerpoint Presentations. Premium Membership is for Lifetime. All Presentations are 100% editable with exceptional design and content which is customized to meet the needs of MBA students. Other topics include – Facing Interview for Success, Business Writing Skills, Time Management, Group Discussion Strategies, Team Work, Non-Verbal Communication, Six Sigma, Building Teams, etc. You get access to professional Power-point Templates. New Presentations are added weekly. Premium Membership Price: USD 19 (Lifetime Membership)

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SWOT Analysis Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Brainstorming & Prioritization in SWOT Analysis Learning Objectives What is SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Tips & Exercise Who needs SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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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 1 Business Unit 2 When the team has not met its targets Customer service can be better Launching a new business unit to pursue a new business New team leader is appointed Company When revenue, cost & expense targets are not being achieved Market share is declining Industry conditions are unfavorable Launching a new business venture 3 Who needs SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Workshop Sessions Brainstorming Meetings Strategic Planning Product Evaluation Competitor Evaluation Personal Development Planning Decision Making Product Launch Changing Jobs Who needs SWOT Analysis? SWOT Analysis is also required for / during... Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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SWOT Analysis Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Brainstorming & Prioritization in SWOT Analysis Learning Objectives What is SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Tips & Exercise How to conduct SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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3. Prepare Action Plans 2. Perform SWOT Analysis & Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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How to conduct SWOT Analysis? 1. Analyse Internal & External Environment Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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How to conduct SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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3. Prepare Action Plans 2. Perform SWOT Analysis & Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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7 Carry your findings forward - Make sure that the SWOT analysis is used in subsequent planning. Revisit your findings at suitable time intervals. Create a workshop environment - Encourage an atmosphere conducive to the free flow of information. 3 Allocate research & information gathering tasks - Background preparation can be carried out in two stages – Exploratory and Detailed. Information on Strengths & Weaknesses should focus on the internal factors & information on Opportunities & Threats should focus on the external factors. 2 Select contributors - Expert opinion may be required for SWOT 1 Establish the objectives - Purpose of conducting a SWOT may be wide / narrow, general / specific. 6 Evaluate listed ideas against Objectives - With the lists compiled, sort and group facts and ideas in relation to the objectives. 5 List Strengths, Weaknesses, Opportunities, & threats 4 How to conduct SWOT Analysis? 2. Perform SWOT Analysis & Document Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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3. Prepare Action Plans 2. Perform SWOT Analysis & Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Premium Membership Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo This is a DEMO Version. Become a Premium Member and Download Full Versions for all Powerpoint Presentations This Presentation contains 34 Slides in total. Premium Members can download Full Versions of All the Powerpoint Presentations. Premium Membership is for Lifetime. All Presentations are 100% editable with exceptional design and content which is customized to meet the needs of MBA students. Other topics include – Facing Interview for Success, Business Writing Skills, Time Management, Group Discussion Strategies, Team Work, Non-Verbal Communication, Six Sigma, Building Teams, etc. You get access to professional Power-point Templates. New Presentations are added weekly. Premium Membership Price: USD 19 (Lifetime Membership)

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How to conduct SWOT Analysis? 3. Prepare Action Plan Things that MUST be addressed immediately Once the SWOT analysis has been completed, mark each point with: Things that can be handled now Things that should be researched further Things that should be planned for the future Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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SWOT Analysis Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Brainstorming & Prioritization in SWOT Analysis Learning Objectives What is SWOT Analysis Benefits & Pitfalls of SWOT Analysis Tips & Exercise Benefits & Pitfalls of SWOT Analysis Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Benefits & Pitfalls of SWOT Analysis Benefits of SWOT Analysis Forecasting Provides a variety of information critical to forecasted variables. Threats, for e.g., can impact a business's forecast. By understanding the company's advantages & disadvantages, forecasts will be more accurate. Decision Making Tool Provides well-rounded information that prompt well-informed decisions. Knowing the Competion Reviews a company's competitors & benchmarks against them to configure strategies that will put the company in a competitive advantage. Benefits of SWOT Analysis Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Benefits & Pitfalls of SWOT Analysis Benefits of SWOT Analysis Helps in setting of objectives for strategic planning Besides the broad benefits, here are few more benefits of conducting SWOT Analysis: 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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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. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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SWOT Analysis Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Brainstorming & Prioritization in SWOT Analysis Learning Objectives What is SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Tips & Exercise Brainstorming & Prioritization in SWOT Analysis Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Brainstorming & Prioritization in SWOT Analysis Brainstorming Prioritization Output from Brainstorming exercise is Prioritized Begin brainstorming by asking the following questions: What opportunities exist in our external environment? What threats to the institution exist in our external environment? What are the strengths of our institution? What are the weaknesses of our institution? At the end of the Brainstorming exercise: Reduce the list of strengths & weaknesses to no more than five distinctive competencies and debilitating weaknesses Strengths that are distinctive competencies Weaknesses that are debilitating Reduce threats and opportunities to the five most critically important of each. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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SWOT Analysis Example text Go ahead and replace it with your own text. This is an example text. Your own footer Your Logo Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Brainstorming & Prioritization in SWOT Analysis Learning Objectives What is SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Tips & Exercise Tips & Exercise Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Tips & Exercise Do’s Be analytical and specific. Record all thoughts and ideas. Be selective in the final evaluation. Choose the right people for the exercise. Choose a suitable SWOT leader or facilitator. Think out of the box Be open to change Don’ts Try to disguise weaknesses. Merely list errors and mistakes. Lose sight of external influences and trends. Allow the SWOT to become a blame-laying exercise. Ignore the outcomes at later stages of the planning process. TIPS Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Tips & Exercise TIPS When conducting a SWOT analysis, designate a leader or group facilitator. Introduce the SWOT method and its purpose in your organization to gain acceptance. Discuss and record the results. Prepare a written summary of the SWOT analysis to give to participants. Be willing to breakaway from traditional methods. While doing a SWOT analysis for your job, invite someone to brainstorm with you. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Tips & Exercise EXERCISE Assume that a car manufacturing company has recently launched its products. Perform a SWOT analysis for the same. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Internal External Helpful Harmful STRENGTHS WEAKNESSES OPPORTUNITIES THREATS No Competition in the EV Segment. Environment friendly Economic to Drive [Rs. 0.4 per km] * Government subsidies [8% excise duty] * Government incentives to gasoline vehicles Entry of competitors Stringent safety requirements anticipated Availability of hybrid vehicles High Price Low aesthetic appeal Small driving range [up to 80 KM] Competition from gasoline vehicles Huge untapped EV market Growing demand of green technologies Rising fuel costs Growing road congestion in urban cities EXERCISE Tips & Exercise * Hypothetical figures Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Tips & Exercise EXAMPLE Mc Donald’s SWOT Analysis Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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WEAKNESSES Failing pizza test market thus limiting the ability to compete with pizza providers. High training costs due to high turnover. Minimal concentration on organic foods. Not much variation in seasonal products . Quality concerns due to franchised operations. Focus on burgers / fried foods not on healthier options for their customers. Ranks very high on the Fortune Magazine's most admired list Community oriented Global operations all over the world Cultural diversity in the foods Excellent location Assembly line operations. Use of top quality products STRENGTHS INTERNAL Marketing strategies that entice people from small children to adults. Lawsuits for offering unhealthy foods. Contamination risks that include the threat of e-coli containments. The vast amount of fast food restaurants that are open as competition. Focus on healthier dieting by consumers. Down turn in economy affecting the ability to eat that much. THREATS Opening more joint ventures. Being more responsive to healthier options. Advertising wifi services in the branches. Expanding on the advertising on being more socially responsible Expansions of business into newly developed parts of the world. Open products up to allergen free options such as peanut free. OPPORTUNITIES EXTERNAL Tips & Exercise Mc Donald’s SWOT Analysis Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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Tips & Exercise Points to Ponder Keep your SWOT short and simple , but remember to include important details. For example, if you think your communication skills is your strength, include specific details, such as verbal / written communication. When you finish your SWOT analysis, prioritize the results by listing them in order of the most significant factors that affect you / your business to the least. Get multiple perspectives on you / your business for your SWOT analysis. Ask for input from your employees, colleagues, friends, suppliers, customers and partners. Apply your SWOT analysis to a specific issue , such as a goal you would like to achieve or a problem you need to solve. You can then conduct separate SWOT analyses on individual issues and combine them. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved.

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