Swot Analysis
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SWOTANALYSIS.pptx
SWOT ANALYSIS ASSIGNMENT BACKGROUND INFORMATION
Assignment Objectives
What is SWOT analysis?
Goals of SWOT analysis
Uses of SWOT
Advantages and Disadvantages
SWOT analysis framework
Tips for SWOT analysis
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What is SWOT analysis
A technique for analyzing both internal and external environments and their potential to affect an organization
SWOT analysis looks at strengths and weaknesses, and the opportunities and threats a business faces. SWOT is an integral part of the strategic planning process
The SWOT analysis framework can be used in both organizational and personal strategic planning
A clear understanding of organizational SWOT analysis is required for business majors
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The Goals of SWOT Analysis
Product or Market Evaluations
Competitor Analysis
Career Planning
SWOT Analysis is useful for...
Changing Jobs
Brainstorming Sessions
Strategic Planning
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Personal Goal Setting
Advantages and Disadvantages
Advantages:
Personal SWOT: helps you objectively analyze where you are and what you can change or adjust to realize personal goals.
Organizational SWOT: it is a systematic way to analyze opportunities and threats to an organization and provides a way of identifying organizational strengths and weaknesses that can address them.
Disadvantages:
Incomplete or erroneous assumptions can lead to faulty planning
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3. Prepare Action Plans
2. Perform SWO T Analysis
1. Analyze Internal & External Environment
SWOT Analysis Framework
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Basic Elements of The SWOT Analysis
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Strengths (internal, positive factors)
Characteristics of the business or individual that give it an advantage over others.
Positive tangible and intangible attributes, internal to an organization or individual
Beneficial aspects of the organization or the capabilities of an organization, process capabilities, financial resources, products and services, customer goodwill and brand loyalty
Examples:
Abundant financial resources
Well-known brand name
Lower costs [raw materials or processes]
Superior management talent
Better marketing skills
Good distribution skills
Committed employees.
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Weaknesses (internal, negative factors)
Internal characteristics that place the firm or individual at a disadvantage relative to others and prevent or limit the organization from realizing its goals.
Weaknesses are controllable. They must be minimized and eliminated.
Examples:
Limited financial resources
Very narrow product line
Limited distribution
Higher costs
Weak market image
Poor marketing/management skills
Under-trained employees.
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Opportunities (external, positive factors)
External, attractive environmental situations that represent the ways in which your business can grow.
These represent favorable economic, market, societal or other conditions that an organization can leverage.
Organizations must recognize these opportunities and take advantage of them when they appear
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 .
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Threats (external, negative factors)
External elements in the environment that could cause trouble for the business
Negative conditions or situations that can and jeopardize the reliability and profitability of the organization
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
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Recommended Action: once SWOT analysis is complete, consider the following aspects of the business:
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How will the business’ strengths help capitalize on available
opportunities while minimizing threats?
How will the business’ weaknesses prevent it from maximizing
on these opportunities?
How will the business’ weaknesses expose it to threats?
Recommend strategies based upon matching internal Strengths
to external Opportunities
MCDONALD’S SWOT EXAMPLE
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WEAKNESSES
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
Mc Donald’s SWOT Analysis
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Conclusion
A SWOT analysis identifies your S, W, O and T to facilitate strategic planning.
SWOT is a simple and comprehensive way to match company strengths to external opportunities while minimizing threats and internal weaknesses
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