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Swot analysis
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, Associate Professor at U.P.T.U.
40 37 0 7
Published on Oct 09, 2013
SWOT analysis is used for planning. which can be used any of the business.
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Published in: Education , Business , Technology
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Suresh Ram , Business Analyst - Retail at Zensar Technologies at Zensar Technologies
very useful, thank you
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please do something useful for STEEP ANALYSIS as well
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very good very precise and very useful, thanks
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thanks for uploading :)
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Gunjan Srivastava , Associate Professor at U.P.T.U.
@nagarathna bs thanks for comment i will update...
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Swot analysis
1. 1. GUNJAN SRIVASTAVA A.P., HYGIA LUCKNOW
2. 2. What is SWOT analysis? Aim of SWOT analysis. Who need SWOT analysis? How to conduct SWOT analysis? Pitfalls of SWOT analysis. Tips for SWOT analysis.
3. 3. A technique that enables a group or individual to move from everyday problems and traditional strategies to a fresh prospective. SWOT analysis looks at your strengths and weaknesses, and the opportunities and threats your business faces.
4. 4. The SWOT Analysis framework is a very important and useful tool to use in marketing Management and other business applications As a basic tool its mastery is a fundamental requirement for the marketer, entrepreneur or business person. A clear understanding of SWOT is required for business majors.
5. 5. SWOT Analysis Oppurtunity Threats Strengths Weakness 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. What is SWOT Analysis?
6. 6. 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, 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?
7. 7. 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?
8. 8. 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.. 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 .
9. 9. ! THREATS What is SWOT Analysis? External elements in the environment that could cause trouble for the business - External factors, beyond an organization’s control. 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.
10. 10. S W TO 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 provide linearity to the decision making process allowing complex ideas to be presented systematically.
11. 11. 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?
12. 12. 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...
13. 13. 3. Prepare Action Plans2. Perform SWOT Analysis& Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis?
14. 14. How to conduct SWOT Analysis? 1. Analyse Internal & External Environment .
15. 15. 3. Prepare Action Plans2. Perform SWOT Analysis& Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis?
16. 16. 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. 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. Select contributors - Expert opinion may be required for SWOT Establish the objectives - Purpose of conducting a SWOT may be wide / narrow, general / specific. Evaluate listed ideas against Objectives - With the lists compiled, sort and group facts and ideas in relation to the objectives. List Strengths, Weaknesses, Opportunities, & threats How to conduct SWOT Analysis? 2. Perform SWOT Analysis & Document
17. 17. 3. Prepare Action Plans2. Perform SWOT Analysis& Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis?
18. 18. 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
19. 19. 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. .
20. 20. 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 х Try to disguise weaknesses. х Merely list errors and mistakes. х Lose sight of external influences and trends. х Allow the SWOT to become a blame- laying exercise. х Ignore the outcomes at later stages of the planning process. TIPS .
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