6 STEPS TO STEP AND SWOT

ANALYSIS
Carlos Maglutac
 Look at current conditions and changes you can expect

STEP 1 - UNDERSTAND STEP FACTORS

 Understand each factor and its scope:
 SOCIAL
 TECHONOLOGICAL
 ECONOMIC
 POLITICAL

STEP 1 - UNDERSTAND STEP FACTORS

 SOCIAL
 cultural and demographic aspects to determine whether the
business can compete in the market.
 assess consumer needs which compel them to make a purchase.
 Age distribution,
 lifestyle changes,
 population growth,
 demographics,
 environmental,
 health and educational consciousness

STEP 1 - UNDERSTAND STEP FACTORS

 TECHNOLOGICAL
 factors which affect the means it can bring its product or service
to the market.
 technology available that make it easy or tough to improve the
production level or enter the industry.
 government expenditure on technology,
 technological advancements,
 lifecycle of technology available,
 role of internet and the changes to it (if any)

STEP 1 - UNDERSTAND STEP FACTORS

 ECONOMIC
 economic aspects to determine whether or not they can play a
role in the success of a business.
 economic growth,
 unemployment policies, and
 business cycle of the country, as well as
 economic,
 interest and inflation rates

STEP 1 - UNDERSTAND STEP FACTORS

 POLITICAL
 how legal issues and government regulations affect the
probability of a business being successful and profitable.
 political stability,
 employment laws,
 safety regulations and
 trade regulations.

STEP 1 - UNDERSTAND STEP FACTORS

 gather as much as relevant data you can about the external
environment of the business.
 You can find most of the information on the internet.

STEP 2: GATHER RELEVANT DATA

 evaluate and identify any opportunities these changes can bring
to you.
 For example, could it open up new markets?
 help you develop new products?
 or make processes more efficient?

STEP 3: IDENTIFY OPPORTUNITIES

 Elements that are undermining your business. This would allow you
to prevent problems, or at least reduce their intensity.
 Current and Potential alternatives
 Price sensitivity

STEP 4: IDENTIFY THREATS

 Evaluate your organizations Strengths
 Relevant to Opportunities and Threats
 Use to take advantage of these Opportunities
 Use to counteract Threats

 Evaluate your organizations Weaknesses

 Relevant to Opportunities and Threats
 Invest in Combatting Threats
 Invest in developing capabilities and strengths

STEP 5: IDENTIFY YOUR STRENGTHS

AND WEAKNESSES
 take advantage of opportunities by including them in
your business plan.
 take appropriate steps and measures to eliminate or manage
threats.

STEP 6: TAKE ACTION

 TOWS Strategic Alternatives Matrix
External Opportunities External Threats
O1 T1
O2 T2
Internal Strengths SO ST
"Maxi-Maxi" Strategy "Maxi-Mini" Strategy
S1
Strategies that use Strategies that use
S2
strengths to maximize opportunities. strengths to minimize threats.

Internal Weaknesses (W) WO WT

W1 "Mini-Maxi" Strategy "Mini-Mini" Strategy
Strategies that minimize
Strategies that minimize
W2 weaknesses by taking advantage of
weaknesses and avoid threats.
opportunities.

BUILD YOUR SWOT MATRIX

 Market Segmentation
 Product Differentiation and Positioning

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