(I) SWOT Analysis:

SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a framework for
identifying and analysing the internal and external factors that can have an impact on the viability of
a project, product, place or person.

SWOT analysis is most commonly used by business entities, but it is also used by non-profit
organizations and, to a lesser degree, individuals for personal assessment. Additionally, it can be
used to assess initiatives, products or projects.

The framework is credited to Albert Humphrey, who tested the approach in the 1960s and 1970s at
the Stanford Research Institute. Developed for business and based on data from Fortune 500
companies, the SWOT analysis has been adopted by organizations of all types as an aid to making
decisions.

A SWOT analysis is often used at the start of or as part of a strategic planning exercise. The
framework is considered a powerful support for decision-making because it enables an entity to
uncover opportunities for success that were previously unarticulated or to highlight threats before
they become overly burdensome. For example, this exercise can identify a market niche in which a
business has a competitive advantage or help individuals plot career success by pinpointing a path
that maximizes their strengths while alerting them to threats that can thwart achievement.
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
What does your What does your What market trends What are the
organisation Organisation need to could lead to Advantages
do better than your improve up on increased sales? competitors
competition have over your
Organization ?

Elements of a SWOT analysis

As its name states, a SWOT analysis examines four elements:
Strengths: Internal attributes and resources that support a successful outcome.
Weaknesses: Internal attributes and resources that work against a successful outcome.
Opportunities: External factors that the entity can capitalize on or use to its advantage.
Threats: External factors that could jeopardize the entity's success.
A SWOT matrix is often used to organize items identified under each of these four elements. A
SWOT matrix is usually a square divided into four quadrants, with each quadrant representing one
of the specific elements. Decision-makers identify and list specific strengths in the first quadrant,
weaknesses in the next, then opportunities and, lastly, threats.
(ii)Corporate strategy:
A corporate strategy entails a clearly defined, long-term vision that organizations set, seeking to
create corporate value and motivate the workforce to implement the proper actions to achieve
customer satisfaction. In addition, corporate strategy is a continuous process that requires a constant
effort to engage investors in trusting the company with their money, thereby increasing the
companys equity. Organizations that manage to deliver customer value unfailingly are those that
revisit their corporate strategy regularly to improve areas that may not deliver the aimed results.

The role of corporate strategy is to ensure that the value of the enterprise as a whole is more than
the sum of its parts.
Developing a winning corporate strategy requires a relentless focus on value creationand
thoughtful attention in three important areas.
There are three types of corporate level strategy that a business can employ.

Value creation strategy:

A value-creating strategy is one in which the business seeks to edge out its competitors by gaining
more market share. These strategies seek to add real and perceived value to the business' products
and services by exploiting economies of scope -- the resources and capabilities of the business that
can be shared across the entire organization to reduce costs and increase efficiency. A key idea
behind value-creating strategy is diversification: offering more products to more consumers within
the market in an attempt to dominate all of part of the overall market share.

Value-Neutral Strategy
A business can employ a value-neutral strategy when the organization isn't so much concerned with
allocating resources and manpower as it is with securing its current place within the market. In
essence, value-neutral strategy helps shore up the business' operations plan. Initiating regulatory
oversight, creating synergy between departments, working to reduce risk and securing a steady cash
flow are value-neutral approaches.

Value Deciding Strategy

While it sometimes is evident which type of corporate level strategy an organization should adopt, it
is less clear at other times, particularly when the market is unsteady or the business cannot afford to
waste resources trying new products and services that may not be profitable. Asking yourself a few
strategy-level questions can help in the decision: Does my company feel threatened by competitors?
If so, value-creating strategy is the right direction. Does my business need to tighten its resources
and monitor its finances more closely? Focus on value-neutral strategy. Are just a select few people
benefiting from the organization's success? Consider value-reducing strategy.
(iii) Product Portfolio Matrix
A product portfolio is the range of items sold by a business. It can be analysed using the Boston
Matrix. Boston Matrix. Star products have a high market share in a fast growing market. Cash Cows
have a high market share in a slow growing market.
product portfolio matrix is designed to help with long-term strategic planning, to help a business
consider growth opportunities by reviewing its portfolio of products to decide where to invest, to
discontinue or develop products. It's also known as the Growth/Share Matrix.
The Matrix is divided into 4 quadrants derived on market growth and relative market share, as
shown in the diagram below.

High Question Marks STARS

DOGS CASH COWS

Low

Low Relative Market Share High

What is the Boston Matrix?

A portfolio of products can be analysed using the Boston Group Consulting Matrix. This categorises
the products into one of four different areas, based on:
Market share does the product being sold have a low or high market share?
Market growth are the numbers of potential customers in the market growing or not
The main values of using the Boston Matrix include:
 A useful tool for analysing product portfolio decisions
But it is only a snapshot of the current position
Has little or no predictive value
Does not take account of environmental factors
There are flaws which flow from the assumptions on which the matrix is based

(iv) Business Environment

The definition of business environment means all of the internal and external factors that affect how
the company functions including employees, customers, management, supply and demand and
business regulations. A business organization can not exist a vacuum. It needs living persons,
natural resources and places and things to exist. The sum of all these factors and forces is called the
business environment.
Quality principles and tools can improve both manufacturing and general business processes; the
goal is to exceed customer expectations to achieve business strategy. Total Quality Management is a
structured system for satisfying internal and external customers and suppliers by integrating the
business environment,continuous improvement etc.

A business environment includes both specific and general factors. Specific factors affect the
individual organization in its day-to-day operations. General factors have an impact on an entire
industry and affect individual organizations equally.

Internal Factors
Internal environment factors have a direct impact on the individual organization. The organization
has some control over internal factors. It can alter or modify such factors, as the manager's deem
appropriate. Here are a few of the internal environmental factors of business that can be changed
when needed:
Value System: A value system includes the culture and norms of the organization. In other
words, it's the regulatory framework of an organization and every employee has to act within
the limits of this framework. The value system can be changed or replaced at any moment
based on the direction of upper management.
Mission and Objectives: Different priorities, policies, and philosophies of a business can
affect the mission and objectives.
Internal Relationships: Factors like the amount of support the management enjoys from its
shareholders, employees, and the board of directions all affect the smooth functions of an
organization.
External Environmental Factors:
The micro environment consists of the factors that directly impact the operation of a company.
The macro environment consists of general factors that a business typically has no control
over. The success of the company depends on its ability to adapt.
Each type of environment has factors, or influences, to take into account. We will review factors for
both micro and macro environments, as well as how they relate to our gas station example.

The Micro Environment

There are five factors that affect the micro environment: suppliers, customers, marketing
intermediaries, financiers, and public perceptions.
Suppliers: At your gas station, what happens if your suppliers don't show up with food, beverages,
gas and other products? You'll have nothing to sell, which will have a direct impact on your
operation.
Customers: Customers are a requirement to run a business. If no one is buying, your gas station will
have to close its doors.
Marketing Intermediaries: Middlemen have a direct impact on your business operation. They could
be your distributors, wholesalers, and other related people.
Financiers: Typically, business owners take out a loan to get started, and the growth of the business
depends upon their ability to obtain additional loans. Let's say you've decided to add a large kitchen
to your gas station and offer fresh foods to your customers. This is a big investment. If the bank tells
you no, it may directly impact the way you want your business to operate in the future.
Public Perceptions: Does your gas station have a good reputation with the general public? You may
have to work on this as you revitalize the business.

The Macro Environment

There are six factors that affect the macro environment, and these include economic, sociocultural,
political, legal, technical, and environmental considerations.
Economic: Economic factors include supply and demand, exchange and interest rates, taxes, and
government spending. The way your company reacts to economic changes is key, and this is where
creativity comes into play.
Sociocultural: This includes how consumers behave. For example, are consumers choosing to
improve their health by walking or biking to work, which could impact the sale of gas?
Political: Changes in government policies and spending can affect your business. For instance, does
your gas station accept electronic benefits transfer (EBT)? Are there government projects in your
area that will increase traffic? If so, the projects might have a positive effect on your business.
Legal: Are there any laws changing in your area, such as employment regulations? These might
include a change in minimum wage .
(V) Competitor Analysis:
Identifying your competitors and evaluating their strategies to determine their strengths and
weaknesses relative to those of your own product or service .
A competitive analysis is a critical part of your company marketing plan. With this evaluation, you
can establish what makes your product or service unique--and therefore what attributes you play up
in order to attract your target market.
Evaluate your competitors by placing them in strategic groups according to how directly they
compete for a share of the customer's dollar. For each competitor or strategic group, list their
product or service, its profitability, growth pattern, marketing objectives and assumptions, current
and past strategies, organizational and cost structure, strengths and weaknesses, and size (in sales)
of the competitor's business.
A competitive analysis covers five key topics:
1. Your company's competitors.
2. Competitor product summaries.
3. Competitor strengths and weaknesses.
4. The strategies used by each competitor to achieve their objectives.
5. The market outlook.
The competitive analysis is a statement of the business strategy and how it relates to the
competition. The purpose of the competitive analysis is to determine the strengths and weaknesses
of the competitors within your market, strategies that will provide you with a distinct advantage, the
barriers that can be developed in order to prevent competition from entering your market, and any
weaknesses that can be exploited within the product development cycle.
The first step in a competitor analysis is to identify the current and potential competition. As
mentioned in the "Market Strategies" chapter, there are essentially two ways you can identify
competitors. The first is to look at the market from the customer's viewpoint and group all your
competitors by the degree to which they contend for the buyer's dollar. The second method is to
group competitors according to their various competitive strategies so you understand what
motivates them.
According to theory, the performance of a company within a market is directly related to the
possession of key assets and skills. Therefore, an analysis of strong performers should reveal the
causes behind such a successful track record. This analysis, in conjunction with an examination of
unsuccessful companies and the reasons behind their failure, should provide a good idea of just
what key assets and skills are needed to be successful within a given industry and market segment.
Through your competitor analysis you will also have to create a marketing strategy that will
generate an asset or skill competitors do not have, which will provide you with a distinct and
enduring competitive advantage. Since competitive advantages are developed from key assets and
skills, you should sit down and put together a competitive strength grid. This is a scale that lists all
your major competitors or strategic groups based upon their applicable assets and skills and how
your own company fits on this scale.
(vi) Portors 5 forces Model
Michael Porter (Harvard Business School Management Researcher) designed various vital
frameworks for developing an organizations strategy. One of the most renowned among managers
making strategic decisions is the five competitive forces model that determines industry structure.
According to Porter, the nature of competition in any industry is personified in the following five
forces:
i. Threat of new potential entrants
ii. Threat of substitute product/services
iii. Bargaining power of suppliers
iv. Bargaining power of buyers
v. Rivalry among current competitors

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industry to industry. These forces jointly determine the profitability of industry because they shape
the prices which can be charged, the costs which can be borne, and the investment required to
compete in the industry. Before making strategic decisions, the managers should use the five forces
framework to determine the competitive structure of industry.
The five forces mentioned above are very significant from point of view of strategy formulation.
The potential of these forces differs from industry to industry. These forces jointly determine the
profitability of industry because they shape the prices which can be charged, the costs which can be
borne, and the investment required to compete in the industry. Before making strategic decisions,
the managers should use the five forces framework to determine the competitive structure of
industry.
Lets discuss the five factors of Porters model in detail:
1. Risk of entry by potential competitors: Potential competitors refer to the firms which are not
 currently competing in the industry but have the potential to do so if given a choice. Entry of
new players increases the industry capacity, begins a competition for market share and
lowers the current costs. The threat of entry by potential competitors is partially a function
of extent of barriers to entry. The various barriers to entry are-
Economies of scale
Brand loyalty
Government Regulation
Customer Switching Costs
Absolute Cost Advantage
Ease in distribution
Strong Capital base
2. Rivalry among current competitors: Rivalry refers to the competitive struggle for market
share between firms in an industry. Extreme rivalry among established firms poses a strong
threat to profitability. The strength of rivalry among established firms within an industry is a
function of following factors:
Extent of exit barriers
Amount of fixed cost
Competitive structure of industry
Presence of global customers
Absence of switching costs
Growth Rate of industry
Demand conditions
3. Bargaining Power of Buyers: Buyers refer to the customers who finally consume the product
or the firms who distribute the industrys product to the final consumers. Bargaining power
of buyers refer to the potential of buyers to bargain down the prices charged by the firms in
the industry or to increase the firms cost in the industry by demanding better quality and
service of product. Strong buyers can extract profits out of an industry by lowering the
prices and increasing the costs. They purchase in large quantities. They have full
information about the product and the market. They emphasize upon quality products. They
pose credible threat of backward integration. In this way, they are regarded as a threat.
4. Bargaining Power of Suppliers: Suppliers refer to the firms that provide inputs to the
industry. Bargaining power of the suppliers refer to the potential of the suppliers to increase
the prices of inputs( labour, raw materials, services, etc) or the costs of industry in other
ways. Strong suppliers can extract profits out of an industry by increasing costs of firms in
the industry. Suppliers products have a few substitutes. Strong suppliers products are
unique. They have high switching cost. Their product is an important input to buyers
product. They pose credible threat of forward integration. Buyers are not significant to
strong suppliers. In this way, they are regarded as a threat.
5. Threat of Substitute products: Substitute products refer to the products having ability of
satisfying customers needs effectively. Substitutes pose a ceiling (upper limit) on the
potential returns of an industry by putting a setting a limit on the price that firms can charge
for their product in an industry. Lesser the number of close substitutes a product has, greater
 is the opportunity for the firms in industry to raise their product prices and earn greater
profits (other things being equal).
The power of Porters five forces varies from industry to industry. Whatever be the industry, these
five forces influence the profitability as they affect the prices, the costs, and the capital investment
essential for survival and competition in industry. This five forces model also help in making
strategic decisions as it is used by the managers to determine industrys competitive structure.
Porter ignored, however, a sixth significant factor- complementaries. This term refers to the reliance
that develops between the companies whose products work is in combination with each other.
Strong complementors might have a strong positive effect on the industry. Also, the five forces
model overlooks the role of innovation as well as the significance of individual firm differences. It
presents a stagnant view of competition.