At the end of the lesson, 100% of

reserved.
Mr. Sherpinsky's Honors Marketing Class. 2015 All rights

the students with 85% level of

efficiency are expected to:

Cognitive: recognize the elements

of
S.W. O. T Analysis

Affective: appreciate the

importance of doing S. W. O. T.
Analysis

Psychomotor: Create a S. W. O. T.
analysis for a certain product.
 What are the
characteristics
of an
Entrepreneur?

Mr. Sherpinsky's Honors Marketing Class. 2015 All rights

reserved.
 Wikarambulan is a sound like game. By
saying/pronouncing and connecting the word,
reveal the elements and factors of principles, tools
and techniques in creating a business.
HOTS Questions

1. What does S. W. O. T. stand for?

2. Is it important to know the strengths,
weaknesses, opportunities and threats of a
business?
3. Why is there a need to conduct
S. W. O. T analysis in any Business?

Mr. Sherpinsky's Honors Marketing Class.

2015 All rights reserved.
 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, 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
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,

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,
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

Mr. Sherpinsky's Honors Marketing Class.

2015 All rights reserved.
How to conduct SWOT Analysis?

1. Analyse Internal & External Environment

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

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

External Environment & Document
 How to conduct SWOT Analysis?

2. Perform SWOT Analysis & Document

Carry your findings forward - Make sure that the SWOT
analysis is used in subsequent planning. Revisit your
findings at suitable time intervals.

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
Create a workshop environment -
Encourage an atmosphere conducive
to the free flow of information.

Select contributors - Allocate research & information gathering tasks -

Expert opinion may be Background preparation can be carried out in two
required for SWOT stages – Exploratory and Detailed. Information on
Strengths & Weaknesses should focus on the
internal factors & information on Opportunities &
Threats should focus on the external factors.
Establish the objectives - Purpose of
conducting a SWOT may be wide / narrow,
general / specific.
How to conduct SWOT Analysis?

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

External Environment & Document
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 Competion 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 a hint 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.

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

subsequently prove to be unfounded [good and bad].
Brainstorming & Prioritization in SWOT Analysis

Brainstorming Prioritization

Output from
Brainstorming exercise
is Prioritized
 Tips & Exercise
TIPS

Do’s Don’ts
✓ Be analytical and specific. х Try to disguise weaknesses.
✓ Record all thoughts and ideas. х Merely list errors and mistakes.
✓ Be selective in the final evaluation. х Lose sight of external influences and trends.
✓ Choose the right people for the exercise. х Allow the SWOT to become a blame-laying
✓ Choose a suitable SWOT leader or facilitator. exercise.
✓ Think out of the box х Ignore the outcomes at later stages of the
✓ Be open to change planning process.
Bring it all together!

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Tips & Exercise PROS AND CONS

GROUP 1 GROUP 2
Assume that a car Mc Donald’s SWOT Analysis
manufacturing company
has recently launched its
products. Perform a SWOT
analysis for the same.
Tips & Exercise
EXERCISE
Helpful

STRENGTHS WEAKNESSES
• No Competition in the EV • High Price
Segment. • Low aesthetic appeal
• Environment friendly • Small driving range [up to
• Economic to Drive [Rs. 0.4 80 KM]
per km] * • Competition from gasoline
• Government subsidies [8% vehicles
excise duty] *

OPPORTUNITIES THREATS

• Huge untapped EV market • Government incentives

External

• Growing demand of green to gasoline vehicles

technologies • Entry of competitors
• Rising fuel costs • Stringent safety
• Growing road congestion requirements anticipated
in urban cities • Availability of hybrid vehicles

* Hypothetical figures Harmful

Tips & Exercise
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 •Minimal concentration on organic foods.
• Global operations all over the world • Not much variation in seasonal products .
• Cultural diversity in the foods • Quality concerns due to franchised operations.
• Excellent location • Focus on burgers / fried foods not on healthier
• Assembly line operations. options for their customers.
• Use of top quality products

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.
more socially responsible • The vast amount of fast food restaurants that
• Expansions of business into newly developed are open as competition.
parts of the world. • Focus on healthier dieting by consumers.
• Down turn in economy affecting the ability to eat
that much.
EXTERNAL
rights reserved.
Mr. Sherpinsky's Honors Marketing Class. 2015 All

Each group shall present a SWOT analysis of

the products showcased during the previous
discussions. Each group shall present their
SWOT through:

1. song
2. News Report
3. Poster with 1 minute explanation
4. 1-minute commercial video clip
Teacher’s Scoring Rubrics: 70%
Concept:40%
Content:40%
Organization of ideas:20%

Peer’s Scoring Rubrics: 30%

Concept:40%
Content:40%
Organization of ideas:20%

Mr. Sherpinsky's Honors Marketing Class.

2015 All rights reserved.
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.
 Generalization:

1. Based on our discussion, what does

S. W. O. T. mean?
2. As an ABM student and future
businessman/ entrepreneur, what is
the purpose of doing S. W. O. T.
Analysis?
3. Give at least two advantages and
disadvantages of S. W. O. T. Analysis?
Example text
Go ahead and replace it with your
own text. This is an example text.

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