SWOT Analysis A tool for situational analysis

Environmental factors internal to the organization are classified as Strengths (S) and Weakness (W).

External factors are referred to Opportunities (O) and Threats (T)

A scan of the internal and the external environment is an important part of strategic planning process. An analysis of the strategic environment is referred to as SWOT/SCOT Analysis

RESOURCES

COMPETITIVE ENVIRONMENT
CAPABILITIES

ENVIRONMENTAL SCAN
INTERNAL ANALYSIS EXTERNAL ANALYSIS

STRENGTHS

WEAKNESSES
OPPORTUNITIES THREATS

STRENGTHS
They are resources and capabilities that can be used as a basis to develop a competitive advantage. Eg : An access to proprietary know-how Patents

WEAKNESS
Absence of certain strengths or the flip side of the strength Eg : A poor reputation High Cost structure

OPPORTUNITIES
The external environment may reveal certain opportunities for growth and development. Eg : Loosening of regulations. Removal of international trade barriers

THREATS
Changes in external environment may present certain threats Eg. Shift in consumer taste Emergence of substitute product New regulations Increased trade barries

SWOT - Analysis
STRENGTHS WEAKNESS

OPPORTUNITIES

THREATS

SWOT to TOWS Matrix

StrengthsMaximize StrengthsMaximize StrengthsMaximize OpportunitiesMaximize WeaknessMinimize OpportunitiesMaximize ThreatsMinimize ThreatsMinimize WeaknessMinimize OpportunitiesMaximize

WeaknessMinimize

ThreatsMinimize

 S-W Strategies Identify ways that firm can use its strengths to reduce the impact of its weaknesses.

 S-T Strategies Identify ways that firm can use its strengths to reduce its vulnerability to external threats

 S-O Strategies :
To pursue opportunities that are a good fit for the companys strength.

 W-O Strategies Overcome weakness to pursue opportunities

 W-T Strategies Establish a defense plan to prevent the firms weaknesses from making it highly susceptible to external strengths

 O-T Strategies :
To pursue opportunities that can overcome threats to the companys.

Decision
Micro level, Macro level. Structural, Process Immediate, Short term, Long term Individual, Group, Organizational

Impact
Macro

Organization

Micro

Impact
Structure

Organization

Process

Impact
Immediate

Short

Impact

Long

Strategic

Impact

Impact
Other Stakeholders

Internal

Impact On

Competitors

Environment

Impact
Workers Employees Internal Departments/ Process Managers