ABM1

Introduction to Agricultural
Commodity and Enterprise
Development
MARIA KARISSA LANZA C. MSc.
Instructors

College of Agriculture and Agri-Industries

Caraga State University
Ampayon,Butuan City,Agusan del N orte,Ph
 S.W.O.T
Analysis

S W O T

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
 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

Oppurtunity
SWOT Weaknes
understand Strengths,
Weaknesses, Opportunities, &

Analysis
Threats involved in a project /
s business.
Used as framework for
organizing and using
data and information
gained from situation
analysis of internal and
external environment.
Threats Technique that enables a
group / individual to move
from everyday problems /
Mr. Sherpinsky's Honors Marketing traditional strategies to a fresh
Class. 2015 All rights reserved. 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, Economies of scale,
Lower costs [raw materials or processes],
Superior management talent, Better
marketing skills, Good distribution skills,
Committed employees.

Mr. Sherpinsky's Honors Marketing

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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, Government
deregulation, Sales decline for a substitute
product .

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
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,

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.

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
 What
SWOT is SWOT
ANALYSIS Analysis?
- THREAT

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,
Product life cycle in decline, Changing
customer needs/tastes, Rival firms adopt
new strategies, Increased government
regulation, Economic downturn.

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
Aim of SWOT Analysis?

L HARMFUL
HELPFU
To help decision makers
share and compare ideas.

To bring a clearer
common purpose and

S W
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

T
past.

O To provide linearity to
the decision making
process allowing
complex ideas to be
presented
systematically.

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
Who needs SWOT Analysis?

• When the team has not met its

targets
2 • Customer service can be better
• Launching a new business unit to
pursue a new business
• New team leader is appointed

Business Unit

Management Company
• When supervisor has issues with
work output • When revenue, cost & expense
• Assigned to a new job targets are not being achieved
1 • New financial year – fresh targets 3 • Market share is declining
• Job holder seeks to improve • Industry conditions are unfavorable
performance on the job • Launching a new business venture

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
 Who needs SWOT Analysis?
SWOT Analysis is also
required for / during...
Effectiveness in Market
Product Launch

Decision
Making

Personal Development
Planning
Competitor
Evaluation
Product
Evaluation
Strategic
Planning
Brainstorming
Meetings
Goods & Services
Evaluation

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How to conduct SWOT Analysis?

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

External Environment & Document

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How to conduct SWOT Analysis?

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

Select contributors - Allocate research & information gathering tasks -

Background preparation can be carried out in two
Expert opinion may be
stages – Exploratory and Detailed. Information on
required for SWOT 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

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
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

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
Benefits & Pitfalls of SWOT Analysis

Benefits of SWOT
Analysis
Benefits of
SWOT
Analysis

Knowing the Competion Forecasting

Reviews a company's Provides a variety of information
competitors & benchmarks critical to forecasted variables.
against them to configure Threats, for e.g., can impact a
strategies that will put the Decision Making Tool business's forecast. By
company in a competitive understanding the company's
Provides well-rounded
advantage. advantages & disadvantages,
information that prompt
forecasts will be more accurate.
well-informed decisions.

Mr. Sherpinsky's Honors Marketing

Class. 2015 All rights reserved.
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 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

Mr. Sherpinsky's Honors Marketing
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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.

Mr. Sherpinsky's Honors Marketing
Class. 2015 All rights reserved.
 Brainstorming & Prioritization in SWOT Analysis

Brainstorming Prioritization

Output from Brainstorming exercise is Prioritized

Begin brainstorming by asking the At the end of the Brainstorming exercise:

following questions:
• Reduce the list of strengths & weaknesses to
• What opportunities exist in our no more than five distinctive competencies and
external environment? debilitating weaknesses
• What threats to the institution exist in •Strengths that are distinctive competencies
our external environment? •Weaknesses that are debilitating
• What are the strengths of our • Reduce threats and opportunities to the five
institution? most critically important of each.
• What are the weaknesses of our
institution?
Mr. Sherpinsky's Honors Marketing
Class. 2015 All rights reserved.
 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
 Choose the right people for the trends.
exercise. х Allow the SWOT to become a blame-
 Choose a suitable SWOT leader or laying
facilitator. exercise.
 Think out of the box х Ignore the outcomes at later stages of
 Be open to change the
planning process.

Mr. Sherpinsky's Honors Marketing

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Tips & Exercise
EXAMPLE

Mc Donald’s SWOT Analysis

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Tips & Exercise
Mc Donald’s
SWOT Analysis INTERNAL

STRENGTHS WEAKNESSES

• Ranks very high on the Fortune Magazine's • Failing pizza test market thus limiting the
most admired list ability to compete with pizza providers.
• Community oriented • High training costs due to high turnover.
• Global operations all over the world • Minimal concentration on organic foods.
• Cultural diversity in the foods • Not much variation in seasonal products .
• Excellent location • Quality concerns due to franchised operations.
• Assembly line operations. • Focus on burgers / fried foods not on healthier
• Use of top quality products options for their customers.

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 that include the threat of
more socially responsible e-coli containments.
• Expansions of business into newly developed • The vast amount of fast food restaurants that
parts of the world. are open as competition.
• Open products up to • Focus on healthier dieting by consumers.
allergen free options • Down turn in economy affecting the ability to
such as peanut free. eat
EXTERNAL
Mr. Sherpinsky's Honors Marketing that much.
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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.

Mr. Sherpinsky's Honors Marketing

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Assignment!

1. Find an agribusiness that you have

the access and means to interview.

2. Make a SWOT analysis of the

business

Example text
Go ahead and replace it with
your own text. This is an
example text.

Your own footer Mr. Sherpinsky's Honors Marketing Your Logo

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