S.W.O.T.

MATRIX

Syed Muhammad Nasir(L1S09MBEX0025 ) Muhammad Junaid-ul-Haq Siddiqui (L1S08MBEX1068) Hafiz Muhammad Bilal (L1S09MBEX2009) Salman Butt (L1S09MBEX0019)

S.W.O.T. Description
y SWOT Analysis is one of the effective analytical tools to

evaluate a situation. The situation may be strategic related or capabilities related. SWOT Analysis is often used along with strategic planning and it forms one of the key critical success factors in a strategic planning process. y There are many ways how a SWOT analysis is used. This presentation aimed to share how SWOT analysis can be used as an essential tool to strategic planning process y While detail analysis is performed, it can become a complex process because it entails several data analysis.

S.W.O.T. Factors

Internal factors to Organization Strengths Weakness

External factors to Organization

Opportunities

Threats

S.W. and O.T.

Strengths and weaknesses: These tend to be internal resources and capabilities. y Skills and competencies of management y Quality of the product Opportunities and threats: These tend to be external factors. y Development of new market y Government legislation y New competitors arriving on the scene

S.W.O.T. Internal Factors

Strengths:
To collect data for the Strengths in relation to our competitor, we may use the following as a guide:
y What are the advantages of our company over our y y y y y

competitor? What are the customer benefits we can offer? What are our customer relationships? What are the offers to customers that we can fulfill? What are the low cost operation capabilities? What are our financial strengths?

S.W.O.T. Internal Factors

Weakness: Similar to the strengths, the Weaknesses is another internal factor that deals with the weaknesses of the operation. The impact of these weaknesses is more urgent when compared it with the competitors who are ahead of us. Below is the guideline we can use to identify weaknesses
y y y y y

What are the setback with our company or operation? What are the "out-dated" or inefficient equipment? What are the bad customer experience? What are the repeated operation failure? What are the escalated cost components?

S.W.O.T. External Factors

Opportunities: In the area of Opportunities, it is an external factor. When dealing with external factors, we have to be objectives. Keep focus on external factors that has an influence to the market and our sales opportunity and those are not within our control. We may use the following guidelines to help us to generate the list of opportunities Political or policy changes that may encourage development Economic situation that encourage spending Societal stability that may encourage harmony (more spending) y Technological advancement that can accelerate our operation
y y y

S.W.O.T. External Factors

Threats: In the area of Threats, it is another external factor we must deal with realistically and that the information has great impact to our business. Keep focus on external factors that has an influence to the market and our sales opportunity and those are not within our control. We may use the following guidelines to help us to generate the list of opportunities:y y y y y y y

Any new entrance to our industry? Any form of substitutions or alternatives What are some of the political changes that influence the economy? Policy imposed that cost more in the long run Economic downturn in our own targeted market Societal instability Obsolete technology that hinder speed to market

Strengths: ISO 9001-2000 Strong security system High quality product Latest mechanized machinery Tremendous market positioning Highly qualified and skilled Management Highly motivated workforce Adequate financial resources Equipped with MIS system Own power generation plant Opportunities Organization can expand product lines Organization can capture new market segments around the world Organization can reduce the cost by proper utilization of resources Organization can hire more well-educated and experienced person

Weaknesses High cost of production Centralized decision making Weak image in the international market Small international market share Less promotional activities No hr department Lack of benefits and rewards for the employees

Threats New entry of competitors Buyer needs demands changes Political instability Change of government policies Globally economic instability

SO Strategies: Use strengths to take advantage of opportunities

Strengths: High quality product Latest mechanized machinery Tremendous market positioning Highly qualified and skilled management Highly motivated workforce Adequate financial resources Equipped with MIS system Opportunities Organization can expand product lines Organization can capture new market segments around the world Organization can reduce the cost by proper utilization of resources Organization can hire more well-educated and experienced person

y Use latest mechanized machinery organization to expand product lines. y Use tremendous market positioning to capture new market segment around the world. y Use highly qualified and skilled management organization to reduce the cost of production

WO Strategies: Overcome weaknesses by taking advantage of opportunities

Weaknesses High cost of production Centralized decision making Weak image in the international market Small international market share Less promotional activities Lack of benefits and rewards for the employees Opportunities Organization can expand product lines Organization can capture new market segments around the world Organization can reduce the cost by proper utilization of resources Organization can hire more well-educated and experienced person

y Use reduce the cost by proper utilization of resources to

overcome the high cost of production y Use organization expansion of products lines to overcome the small international market share. y Use new hiring of more well-educated and experienced persons to easily overcome its lack of promotional activities in the market.

ST Strategies Use strengths to avoid threats

Strengths: High quality product Latest mechanized machinery Tremendous market positioning Highly qualified and skilled management Highly motivated workforce Sufficient financial resources Equipped with MIS system Threats New entry of competitors Buyer needs demands changes Political instability Change of government policies Globally economic instability

y Use organization s sufficient financial recourses to avoid the

consequences of political instability by expanding its business to other areas where political instability is minimal. y Use Organization s high quality products and competitive advantage organization to reduce the threat of the new entry of competitors. y Use highly educated staff to keep a very strong eye on any change in buyer s demand or bargaining power.

WT Strategies Minimize weaknesses and avoid threats

Weaknesses High cost of production Centralized decision making Weak image in the international market Small international market share Less promotional activities Lack of benefits and rewards for the employees Threats New entry of competitors Buyer needs demands changes Political instability Change of government policies Globally economic instability

y Overcome on less promotional activities weakness to have more loyal

customers to reduce the threat of new entry of competitors. y Overcome on lack of benefits and rewards for the employees to have more happy employees which will ultimately work for the betterment of the organization to keep a strong eye on buyers needs and demands change patterns. y Have a greater market share to reduce the threat of globally economic instability.

y Company should have proper planning to purchase raw material as it is

purchased sometimes without planning in every season that is the cause of high level of inventory and blockage of funds and ultimately affects the liquidity. y Expanding product lines that will give more variety to people of country could extend local marketing and ultimately sales would be increased. There should be more staff in local marketing department to enhance the sales figure and to capture wide area of local market. y In processing department there is a need of skilled workers. There are certain departments of processing in which employees have been working since long but there efficiency is not improved and unsatisfactory results come out sometimes. The skilled labor will not only improve the efficiency but also will improve effectiveness.

y The Company should arrange training and orientation programs for its

employees on regular basis so that they can equip themselves with the latest developments in the field of finance and accounts and operations y Employees work overload should be controlled properly so that the employees are motivated. y There should be more female artists and designers in design department as females have naturally more esthetical qualities than males. They will really improve the quality of designs and will introduce more innovative designs.

Q&A