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SWOT Analysis

This document discusses SWOT analysis, which is a framework used to evaluate a company's competitive position and develop strategic planning. It examines internal and external factors of strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal, while opportunities and threats are external.

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Danica Llamazares
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15 views

SWOT Analysis

This document discusses SWOT analysis, which is a framework used to evaluate a company's competitive position and develop strategic planning. It examines internal and external factors of strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal, while opportunities and threats are external.

Uploaded by

Danica Llamazares
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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S W O T

A N A LY S I S
EXPECTATIONS

After going through this lesson, you


are expected to:
1. understand SWOT analysis;
2. discuss the purpose of SWOT
analysis; and
3. identify the SWOT of a business.
SWOT ANALYSIS

SWOT (strengths, weaknesses,


opportunities, and threats) analysis is a
W
framework used to evaluate a
company's competitive position and to
S
develop strategic planning. SWOT
analysis assesses internal and external O T
factors, as well as current and future
potential (Grant, 2020).
A SWOT analysis is designed to facilitate a realistic, fact-based, data-
driven look at the strengths and weaknesses of an organization or an
industry. The organization needs to keep the accuracy of the analysis by
avoiding pre-conceived beliefs or gray areas and instead focusing on
real-life contexts. Companies should use it as a guide and not necessarily
as a prescription.

SWOT analysis is a technique for assessing the performance,


competition, risk, and potential of a business, as well as part of a
business such as a product line or division, an industry, or other entity.
Internal Factors: Strengths (S) and Weaknesses (W)
These are the resources and experiences readily available to the businessproponents.
These factors include:
1. financial resources such as money and source of funds for investment;
2. physical resources such as the company’s location, facilities, machinery, and
equipment;
3. human resources consisting of employees;
4. access to natural resources, trademarks, patents, and copyrights; and
5. current processes, such as employee programs, sales, and distribution capabilities,
marketing programs, etc.
STRENGTH

Strengths describe what an


organization excels at and what
separates it from the
competition: a strong brand,
loyal customer base, a strong
balance sheet, unique
technology, and more.
WEAKNESS

Weaknesses stop an organization


from performing at its optimum
level. There are areas where the
business needs to improve: lack of
raw materials, personnel attitude,
poor location, and lack of budget
for product promotion, among
others.
External Factors: Opportunities (O) and Threats (T)
These are factors that affect a company, an organization, an individual, and
those outside their control. These factors include:

1. economic trends such as stock market, economic performance,


and the like;
2. market trends such as new products or technology, changes in
tastes and lifestyle of society;
3. national and local laws and regulations;
4. relationship with suppliers; and
5. competitive threats.
OPPORTUNITY

Opportunities refer to favorable


external factors that could give
an organization a competitive
advantage. Examples include
larger market, company
expansion, and new customer
trends, among others.
THREATS

Threats refer to factors that have


the potential to harm an
organization. For example,
changes in government policy,
changes in consumer tastes and
preferences, inflation, and
recession, among others.
A C T I V I T Y

SWOT Analysis
Directions: Identify if the following situations are under STRENGTHS,
WEAKNESSES, OPPORTUNITY, and THREATS. Write the number of the
corresponding market situation in the SWOT Analysis Matrix.
Business: Barbecue Stand

1. The City Council of LGU in Pasig passed a new bill requiring small businesses
to register in the Business and Licensing Department of the City which is
costly.
2. More customers are beginning to like the sauces used by the barbecue
business.
3. The carinderia in front of the barbecue stand added grilled meals in their
menu.
4. Customers are asking if they can order ahead of time by texting the owner.
5. There is a steady supply of meals in the market.
6. Poor sanitation practices by the helpers.
7. A new building is under construction near the barbecue stand.
8. Only 2 helpers are attending to the needs of growing customers.

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