SWOT

ANALYSIS
 STRENGTH

SWOT
ANALYS
OPPORTUNITY WEAKNESS
IS

THREATS
 QUESTION:
STRENGTH • What does
the
SWOT diagram
ANALYS WEAKNESS
OPPORTUNITY
IS shows?
THREATS
 QUESTION:
STRENGTH • What is the
use of
SWOT
ANALYS WEAKNESS
OPPORTUNITY
SWOT
IS Analysis?
THREATS
 SWOT
ANALYSIS
• Acronym for Strengths,
Weaknesses,
Opportunities, and
Threats.
• credited to Albert
Humphrey
• Planning tool used to
understand Strengths,
Weaknesses,
Opportunities, & Threats
involved in a project /
business.
 SWOT
ANALYSIS
• Used as framework for
organizing and using data
and information gained
from situation analysis of
internal and external
environment.
• Technique that enables a
group / individual to move
from everyday problems /
traditional strategies to a
 STRENGT
H
• 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.
 STRENGT
• H
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.
 STRENGT
• Examples H- 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.
 WEAKNESS
• 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.
 WEAKNESS
• 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.
 WEAKNESS
• 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Higher costs, Out-of-date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-
 OPPORTUNITY
• Chances to make greater
profits in the environment
- External attractive
factors that represent the
reason for an organization
to exist & develop.
 OPPORTUNITY
• Arise when an
organization can take
benefit of conditions in its
environment to plan and
execute strategies that
enable it to become more
profitable.
 OPPORTUNITY
• Organization should be
careful and recognize the
opportunities and grasp
them whenever they arise.
Opportunities may arise
from market, competition,
industry/government and
technology.
 OPPORTUNITY
• 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 .
 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.
 THREATS
• Arise when conditions in
external environment
jeopardize the reliability
and profitability of the
organization’s business.
 THREATS
• Compound the
vulnerability when they
relate to the weaknesses.
Threats are uncontrollable.
When a threat comes, the
stability and survival can
be at stake.
 THREATS
• 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,
HOW DOES SWOT
ANALYSIS HELPS
BUSINESSES/
PROJECT?
 LEARNING
OUTCOMES:
At the end of the lesson, the learners will
be able to:
• identify who needs SWOT Analysis
• determine the aim and function of
SWOT analysis; and
• Determine the benefits and pitfalls of
SWOT Analysis
 WHAT DO YOU
THINK IS THE AIM OF
THE SWOT
ANALYSIS?
 AIM OF SWOT
ANALYSIS
• 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
 AIM OF SWOT
ANALYSIS
• To analyze issues that
have led to failure in
the past.
• To provide linearity to
the decision making
process allowing
complex ideas to be
presented
systematically.
 WHO NEEDS SWOT
Job Business
ANALYSIS?
Holders
•When supervisor
has issues with work
Unit
• When the team has
not met its target
output • Customer service
• Assigned to a new can be better
job • Launching a new
• New financial year – business unit to
fresh targets pursue a new
• Job holder seeks to business
improve • New team leader is
performance on the appointed
job
 WHO NEEDS SWOT
ANALYSIS?
Company
• When revenue, cost & expense
targets are not being achieved
• Market share is declining
• Industry conditions are
unfavorable
• Launching a new business
venture
 SWOT ANALYSIS IS ALSO
REQUIRED FOR/DURING...
• Workshop Sessions• Personal
• Brainstorming Development
Meetings Planning
• Strategic Planning • Decision Making
• Product Evaluation • Product Launching
• Competitor • Changing Jobs
 WHAT IS THE
BENEFITS AND
PITFALLS OF SWOT
ANALYSIS
 BENEFITS OF SWOT
ANALYSIS
Knowing the
Competion
• Reviews a company's competitors &
benchmarks against them to configure
strategies that will put the company in
a competitive advantage.
 BENEFITS OF SWOT
Decision ANALYSIS

Making
• Provides Tool information that
well-rounded
prompt well-informed decisions.
 BENEFITS OF 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
 BENEFITS OF SWOT
ANALYSIS
• Basis for assessing core capabilities &
competencies
• Evidence for, and cultural key to,
change
• Provides a stimulus to participation in
a group experience
 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
 PITFALLS OF SWOT
• ANALYSIS
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
 PITFALLS OF SWOT
•
ANALYSIS
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
 GET 1/2
SHEET OF
PAPER
 ANSWER THE
FOLLOWING IN 3-5
SENTENCES
1.What is SWOT analysis? ONLY
2.How does SWOT Analysis helps
companies and individuals?
3.Would you recommend the use of
SWOT Analysis considering its benifits
and pitfalls?
THANK
YOU