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PESTLE & SWOT Analysis

SWOT and PESTLE analyses are tools used to evaluate a business's internal strengths and weaknesses as well as external opportunities and threats in its environment. A SWOT analysis breaks down into strengths, weaknesses, opportunities, and threats, while a PESTLE analysis examines political, economic, social, technological, legal, and environmental factors. Both are useful for strategic planning, decision making, and evaluating performance.

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Sahmi Abdulqahar Nizori
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148 views14 pages

PESTLE & SWOT Analysis

SWOT and PESTLE analyses are tools used to evaluate a business's internal strengths and weaknesses as well as external opportunities and threats in its environment. A SWOT analysis breaks down into strengths, weaknesses, opportunities, and threats, while a PESTLE analysis examines political, economic, social, technological, legal, and environmental factors. Both are useful for strategic planning, decision making, and evaluating performance.

Uploaded by

Sahmi Abdulqahar Nizori
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SWOT & PESTLE Analysis

SWOT Break up :

Strengths: characteristics of the business or project that give it


an advantage over others.
Weaknesses: characteristics that place the business or project
at a disadvantage relative to others.
Opportunities: elements that the project could exploit to its
advantage.
Threats: elements in the environment that could cause trouble
for the business or project.
Strengths:
• Abundant financial resources
• Well-known brand name
• Economies of scale
• committed employees
• Location of your business
• Innovative products and services
• Better Marketing skills
Weaknesses:
• Limited financial resources
• Weak spending on R&D
• Very narrow product line
• Out-of-Date products
• Under trained employees
• Damaged Reputation
• Poor quality goods or services
Opportunities:
• Rapid Market growth
• Rival firms are complacent
• Changing costumer needs
• New uses for product discovered
• Economic boom
• Government deregulation
• Sales decline for a substitute product
• A new international market
• A developing market such as Internet
Threats:
• Entry of foreign competitor
• Introduction of new substitute products
• Product life cycle in decline
• Changing costumers needs
• Rival firms adopt new strategies
• Increased government regulation
• Economic downturn
• Price wars with competitors
Aim of SWOT Analysis:
• Reveal your competitive Advantages
• Analyze your prospects for sales, profitability and product
development
• Prepare your company for problems
• Identify where you are strong and vulnerable , where you should
defend and attack, that process is a ‘ plan of action ‘
• To provide linearity to the decision making allowing complex ideas to
be presented systematically
Applications of SWOT Analysis:
• Workshop session
• Brainstorm meetings
• Problem solving
• Planning
• Products evaluation
• Competitor evaluation
• Personal development planning
• Decision making
How to do A SWOT
• Step 1) information gathering : list all strengths and weaknesses, be
realistic .
• Step 2) What might be : list all opportunities that exist in the future
and threats too.
• Step 3) Plan of action : use SWOT matrix to create an action plan.
SWOT Matrix:
Simple rules for a successful analysis
• Be realistic about your strengths and weaknesses
• The analysis should distinguish between where you are today and
where you could be in the future
• Be specific avoid gray area
• Always analyze with relation to your competitors
• Avoid unnecessary complexity and over analysis
• It is pointless to say you have strengths (S) if your competitors have
the same
Break up of PESTLE
Political, Economic & Social Factors
Technological, Legal & Environmental

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