Swot analysis


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Swot analysis

  1. 1. SWOT Analysis Sayed Mohammad Naim KHALID Sayed Mohammad Naim April 201210/04/12 KHALID1
  2. 2. Contents  Introduction  How to use SWOT analysis  Productive SWOT analysis  Benifits of SWOT analysis  Examples of SWOT analysis  References10/04/12 2 Sayed Mohammad Naim KHALID
  3. 3. SWOT (1/3)  A widely used framework for organizing and using data and information gained from situation analysis  Encompasses both internal and external environments  One of the most effective tools in the analysis of environmental data and information10/04/12 3 Sayed Mohammad Naim KHALID
  4. 4. SWOT description(2/3)  A SWOT analysis generates information that is helpful in matching an organization’s or a group’s goals, programs, and capacities to the social environment in which they operate  It is an instrument within strategic planning  When combined with a dialogue, it is a participatory process10/04/12 4 Sayed Mohammad Naim KHALID
  5. 5. SWOT (3/3)  What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit.  And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares.  More than this, by looking at yourself and your competitors using the SWOT framework, you can start to craft a strategy that helps you distinguish yourself from your competitors, so that you can compete successfully in your market.10/04/12 5 Sayed Mohammad Naim KHALID
  6. 6. How to Use SWOT Analysis  Originated by Albert S Humphrey in the 1960s, SWOT Analysis is as useful now as it was then.  You can use it in two ways - as a simple icebreaker helping people get together to "kick off" strategy formulation, or in a more sophisticated way as a serious strategy tool.10/04/12 6 Sayed Mohammad Naim KHALID
  7. 7. SWOT  Factors affecting an organization can usually be classified as:  Internal factors  Strengths (S)  Weaknesses (W)  External factors  Opportunities (O)  Threats (T)10/04/12 7 Sayed Mohammad Naim KHALID
  8. 8. SWOT: internal factors  Strengths  Positive tangible and intangible attributes, internal to an organization. They are within the organization’s control  Weaknesses  Factors that are within an organization’s control that detract from its ability to attain the core goal. In which areas might the organization improve?10/04/12 8 Sayed Mohammad Naim KHALID
  9. 9. SWOT: external factors  Opportunities  External attractive factors that represent the reason for an organization to exist and develop. What opportunities exist in the environment which will propel the organization?  Identify them by their “time frames”  Threats  External factors, beyond an organization’s control, which could place the organization’s mission or operation at risk. The organization may benefit by having contingency plans to address them should they occur  Classify them by their “seriousness” and “probability of occurrence”10/04/12 9 Sayed Mohammad Naim KHALID
  10. 10. The elements of a SWOT analysis  Strengths and weaknesses  Scale and cost economies  Size and financial resources  Intellectual, legal, and value of reputation  Opportunities and threats  Trends in the competitive environment  Trends in the technological environment  Trends in the socio-cultural environment10/04/12 10 Sayed Mohammad Naim KHALID
  11. 11. Strengths (1/2)  What advantages does your organization have?  What do you do better than anyone else?  What unique or lowest-cost resources can you draw upon that others cant?  What do people in your market see as your strengths?  What factors mean that you "get the sale"?  What is your organizations unique selling propositin?10/04/12 11 Sayed Mohammad Naim KHALID
  12. 12. Strengths (2/2)  Consider your strengths from both an internal perspective, and from the point of view of your customers and people in your market.  You should also be realistic - its far too easy to fall prey to "not invented here syndrome."  Also, if youre having any difficulty with this, try writing down a list of your organizations characteristics.  Some of these will hopefully be strengths!When looking at your strengths, think about them in relation to your competitors.  For example, if all of your competitors provide high quality products, then a high quality production process is not a strength in your organizations market, its a necessity.10/04/12 12 Sayed Mohammad Naim KHALID
  13. 13. Weaknesses (1/1)  What could you improve?  What should you avoid?  What are people in your market likely to see as weaknesses?  What factors lose you sales?  Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you dont see?  Are your competitors doing any better than you?  Its best to be realistic now, and face any unpleasant truths as soon as possible.10/04/12 13 Sayed Mohammad Naim KHALID
  14. 14. Opportunities(1/1)  What good opportunities can you spot?What interesting trends are you aware of?  Useful opportunities can come from such things as:Changes in technology and markets on both a broad and narrow scale.  Changes in government policy related to your field.Changes in social patterns, population profiles, lifestyle changes, and so on.  Local events.  A useful approach when looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities.  Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them.10/04/12 14 Sayed Mohammad Naim KHALID
  15. 15. Threats (1/1)  What obstacles do you face?  What are your competitors doing?  Are quality standards or specifications for your job, products or services changing?  Is changing technology threatening your position?  Do you have bad debt or cash-flow problems?  Could any of your weaknesses seriously threaten your business?10/04/12 15 Sayed Mohammad Naim KHALID
  16. 16. To have productive SWOT analysis  Stay focused. Be specific and avoid grey areas. Keep your swot short and simple. Avoid complexity and over analysis  Collaborate with other functional areas  Examine issues from the customers’/ stakeholders’ perspective  Look for causes, not characteristics  Separate internal issues from external issues10/04/12 16 Sayed Mohammad Naim KHALID
  17. 17. Major benefits of SWOT analyses  Simplicity  Flexibility  Integration and synthesis  Collaboration  Lower costs10/04/12 17 Sayed Mohammad Naim KHALID
  18. 18. 10/04/12 18 Sayed Mohammad Naim KHALID
  19. 19. Example SWOT Analysis(1/6)  A start-up small consultancy business might draw up the following SWOT Analysis:10/04/12 19 Sayed Mohammad Naim KHALID
  20. 20. Example strengths (2/6)  We are able to respond very quickly as we have no red tape, and no need for higher management approval.  We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers.  Our lead consultant has strong reputation in the market.  We can change direction quickly if we find that our marketing is not working.  We have low overheads, so we can offer good value to customers.10/04/12 20 Sayed Mohammad Naim KHALID
  21. 21. Example weaknesses (3/6)  Our company has little market presence or reputation.  We have a small staff, with a shallow skills base in many areas.  We are vulnerable to vital staff being sick, and leaving.  Our cash flow will be unreliable in the early stages.10/04/12 21 Sayed Mohammad Naim KHALID
  22. 22. Example opportunities (4/6)  Our business sector is expanding, with many future opportunities for success.  Local government wants to encourage local businesses.  Our competitors may be slow to adopt new technologies.10/04/12 22 Sayed Mohammad Naim KHALID
  23. 23. Example threats (5/6)  Developments in technology may change this market beyond our ability to adapt.  A small change in the focus of a large competitor might wipe out any market position we achieve.10/04/12 23 Sayed Mohammad Naim KHALID
  24. 24. Example result of SWOT (6/6)  As a result of their SWOT Analysis, the consultancy may decide to specialize in rapid response, good value services to local businesses and local government.  Marketing would be in selected local publications to get the greatest possible market presence for a set advertising budget, and the consultancy should keep up-to-date with changes in technology where possible.10/04/12 24 Sayed Mohammad Naim KHALID
  25. 25. 2nd exemple (1/4)10/04/12 25 Sayed Mohammad Naim KHALID
  26. 26. 2nd exemple (2/4)10/04/12 26 Sayed Mohammad Naim KHALID
  27. 27. 2nd exemple (3/4)10/04/12 27 Sayed Mohammad Naim KHALID
  28. 28. 2nd exemple (4/4)10/04/12 28 Sayed Mohammad Naim KHALID
  29. 29. References  http://www.mindtools.com/pages/article/newTMC_05.htm (26/02/12)  http://www.quickmba.com/strategy/swot/ (01/03/12)  http://www.businessballs.com/swotanalysisfreetemplate.htm (01/03/12)  http://123business-fr.com/swotanalysis.aspx (05/03/12)  http://www.bizstrategies.biz/swot-analysis.html (05/03/12)  http://www.12manage.com/methods_swot_analysis_fr.html (10/03/12)  http://business-docs.co.uk/documents/swot-analysis-template (10/03/12)10/04/12 29 Sayed Mohammad Naim KHALID