SWOT Analysis

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Information about SWOT Analysis
Business-Finance

Published on August 11, 2008

Author: lanre

Source: authorstream.com

Slide 1: SWOT Analysis 05 April 2008 What is SWOT Analysis? : What is SWOT Analysis? A technique that enables a group or individual to move from everyday problems and traditional strategies to a fresh perspective. SWOT is an acronym for: : S – Strengths W – Weaknesses O – Opportunities T – Threats SWOT is an acronym for: Internal Environment External Environment Strength : Strength Any existing or potential resources or capability within the organisation that provides a competitive advantage in the market. Example: Strong distribution network Intense Staff commitment and loyalty Increasing profit margin Activity #1: Can you identify some of your organisation’s strengths? Weakness : Weakness Any existing or potential force which could serve as a barrier to maintaining or achieving a competitive advantage in the market. Example: Lack of a clear company strategy Lack of training opportunities for using a new software Activity #2: Can you think of some of your company’s weaknesses? Opportunity : Opportunity Any existing or potential force in the external environment that, if properly leveraged, could provide a competitive advantage. Example: Organisation’s geographic location New technology Activity #3: Can you think of some opportunities available to your company? Threat : Threat Any existing or potential force in the external environment that could erode a competitive advantage. Example: A new competitor entrant A recession, rising interest rates, or tight credit lines Activity #4: Can you think of some threats to your business? Aim of SWOT Analysis : Aim of SWOT Analysis Take advantage of strengths and opportunities. Minimise weaknesses and eliminate threats Who Needs SWOT Analysis? : Who Needs SWOT Analysis? A Company When revenue, cost and expense targets are not being achieved; Market share is dropping; Industry conditions are unfavourable; Want to launch a new business venture; etc Who Needs SWOT Analysis? : Who Needs SWOT Analysis? A Department/Business Unit When the team has not met its targets; Customer service can be better; A new business unit to pursue a new business; A new team leader is appointed; etc Who Needs SWOT Analysis? : Who Needs SWOT Analysis? Job Holder When supervisor has issues with work output; Assigned to a new job; New financial year – fresh targets; Job holder seeks to improve performance on the job; etc. How to do SWOT Analysis? : A SWOT analysis is useful only when action plans and strategies are developed from the results How to do SWOT Analysis? Prepare Action Plans Analyse Internal & External Environment Perform SWOT Analysis and Document Step 1 Step 2 Step 3 Benefits of SWOT Analysis : Benefits of SWOT Analysis Solving problems Implementing change Developing strategies for achieving the organisation’s objectives and mission Brainstorming – key ingredient for SWOT : Brainstorming – key ingredient for SWOT SWOT analysis will be useful if: You are thinking outside the box Availability of varied perspectives – group discussion Liberty to say your mind Willingness to break away from traditional methods Appetite for change Some Brainstorming Rules : Some Brainstorming Rules Activity #5: Sample Questions : Activity #5: Sample Questions Activity #5: Sample Questions : Activity #5: Sample Questions SWOT Worksheet : SWOT Worksheet SWOT Worksheet : SWOT Worksheet Activity #6: Strategies & Action Plans : Activity #6: Strategies & Action Plans Activity #6: Strategies & Action Plans : Activity #6: Strategies & Action Plans Debrief and Lessons Learnt : Debrief and Lessons Learnt Activity #7: Comments from Participants Homework: Do a SWOT analysis for your job. Invite someone to brainstorm with you.

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