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SWOT ANALYSI S

PRESENTED BY: SAKIBA NABI B-TECH-2009-34 SEMESTER 6TH COURSE NO. : SSC-332
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DEFINITION

The analysis of an organization's internal and external factors. refers to identifying the strengths, weaknesses, opportunities and threats of an organization. is a general tool designed to be used in the preliminary stages of decisionmaking and as a precursor to strategic planning in various kinds of applications (Johnson et al., 1989; Bartol et al.,1991).

It

It

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 The

Internal Analysis looks into a companys sales volume, market share, profitability and so on. This will reveal its strength and weakness.

The

External Analysis will include industry performance, competitive activity and a review of the growth and decline of the user industries.

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SWOT ANALSIS FRAMEWORK

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WHY TO USE SWOT ANALSIS?

The

SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. such, it is instrumental in strategy formulation and selection. diagnosis of the current situation is the need for innovation which is required for continued progress of an enterprise.
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As

The

Strengths

Positive tangible and intangible attributes, internal to an organization. They are within the organizations control.

firm's strengths are its resources and capabilities that can be used for developing a competitive advantage. Examples of such strengths include: Patents Strong brand names Good reputation among customers Cost advantages from proprietary knowhow Exclusive access to natural resources Good access to distribution networks 7/26/12

weaknesses
Factors

that are within an organizations control that detract from its ability to attain the core goal. These include the areas in which the organization might improve.

The

absence of certain strengths are a weakness. For example, the following may be considered weaknesses: of patent protection reputation among customers cost structure of access to best natural resources of access to key distribution 7/26/12 weak brand name

Lack A

Poor High Lack Lack

Continued..
In

some cases, a weakness may be the flip side of a strength. example, a firm has a large amount of manufacturing capacity. this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.
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For

While

opportunities

External attractive factors that represent the reason for an organization to exist and develop.
opportunity is an area of need in which a company can perform profitably.
Some examples of opportunities include: unfulfilled customer need of new technologies population of international trade barriers
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An

An

Arrival

Growing Removal

threats
Some An

developments in the external environment represent threats. environmental threat is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to sales or profit deterioration. Some examples of such threats include: in consumer tastes away from the firm's products of substitute products
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shifts

emergence new

regulations

the Swot matrix

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Source:

Swot interactions

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Source:

Advantages of swot analysis

Development

product.

of new technology or in the process of

Improvements

production.

The goals to be achieved in future can be decided. can be formalized for effective communication & implementation of plans. of the range of services and
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Plans

Expansion

benefits.

SWOT-driven planning
The

assessment of strengths and weaknesses should look beyond products, services and resources to examine processes that meet customers or stakeholders needs goals and objectives depends on transforming strengths into capabilities by matching them with opportunities can be converted into strengths with strategic investment. Threats can be converted into opportunities with the right resources that cannot be converted become limitations which must be minimized 7/26/12

Achieving

Weaknesses

Weaknesses

POTENTIAL DRAWBACKS OF SWOT

SWOTs They

can allow companies to take a lazy course look for strengths that match opportunities yet ignore the opportunities that they feel they cant use to their advantage. A more active approach would be to involve identifying the most attractive opportunities and then plan to stretch the company to meet these opportunities.
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Case study of a hotel in Bangalore

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THANK PAYING

YOU

FOR

ATTENTION

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