8 swot analysis

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8 swot analysis

  1. 1. SWOT ANALYSISSWOT ANALYSIS  Is usually required when;Is usually required when;  When formulating your strategic directionWhen formulating your strategic direction  Drawing strategic/business/marketing plansDrawing strategic/business/marketing plans  Convincing creditors, investors, and topConvincing creditors, investors, and top management about the firm’s future ormanagement about the firm’s future or strategic directionstrategic direction  When making your strategic choice/whenWhen making your strategic choice/when modifying the existing strategy or itsmodifying the existing strategy or its tactics/crafting (formulating) a newtactics/crafting (formulating) a new strategicstrategic
  2. 2.  Internal assessment:Internal assessment:  StrengthsStrengths  WeaknessesWeaknesses  External assessment:External assessment:  OpportunitiesOpportunities  ThreatsThreats  Which of these are of important or not,Which of these are of important or not, urgent or not, relevant or not in relationurgent or not, relevant or not in relation to your strategic direction, strategy to beto your strategic direction, strategy to be used, resources available (feasibility?),used, resources available (feasibility?), and values of top management?and values of top management?
  3. 3.  A firm needs to:A firm needs to:  Respond to / take advantage of those goldenRespond to / take advantage of those golden opportunitiesopportunities  Cope with and encounter those potentially frustratingCope with and encounter those potentially frustrating threatsthreats  Correct weaknessesCorrect weaknesses  Exploit / capitalize on its strengthsExploit / capitalize on its strengths  This matching of the SWOT variables/issues resultsThis matching of the SWOT variables/issues results into SWOT matrix that guides the appropriateness ofinto SWOT matrix that guides the appropriateness of your future strategic choiceyour future strategic choice  Develop a SAP chart for Strengths and weaknesses,Develop a SAP chart for Strengths and weaknesses, and an ETOP chart for Opportunities and Threatsand an ETOP chart for Opportunities and Threats to decide on the appropriate tactics (actions) to use into decide on the appropriate tactics (actions) to use in your chosen strategiesyour chosen strategies
  4. 4.  A firm should single out those SWOTA firm should single out those SWOT facts that are more urgent, importantfacts that are more urgent, important and most likely to influence itsand most likely to influence its strategy/approach to your strategicstrategy/approach to your strategic direction.direction.  A firm should also match its strengthsA firm should also match its strengths and weaknesses, to its opportunitiesand weaknesses, to its opportunities and threats in the environment in formand threats in the environment in form of a SWOT matrix.of a SWOT matrix.
  5. 5. Before your SWOT matrix ,askBefore your SWOT matrix ,ask yourselves internallyyourselves internally  In what areas have our strengths improved within this period,In what areas have our strengths improved within this period, and to what extent?and to what extent?  Where have we managed to counter our weaknesses?Where have we managed to counter our weaknesses?  In which areas of weakness are we continuously deterioting?In which areas of weakness are we continuously deterioting?  Are we too weak, strong enough, or stable? Are these areas ofAre we too weak, strong enough, or stable? Are these areas of importance to us?importance to us?  What can we then do with our strengths, and about our areasWhat can we then do with our strengths, and about our areas of weaknesses?of weaknesses?  Not ignoring those relevant Opportunities and Threats, afterNot ignoring those relevant Opportunities and Threats, after answering those relevant questions, go a head with youranswering those relevant questions, go a head with your SWOT matrixSWOT matrix
  6. 6. OPPORTUNITIESOPPORTUNITIES -Growing market for-Growing market for our productsour products -Tax holidays-Tax holidays -Competent-willing-Competent-willing supplierssuppliers THREATSTHREATS -Better competititors-Better competititors -Future hostile take--Future hostile take- overover -Political instability-Political instability -Inferior product-Inferior product rangerange RegulationsRegulations STRENGTHSSTRENGTHS -Strong capital base-Strong capital base -Many loyal customers-Many loyal customers -Competent and-Competent and customer-centered staffcustomer-centered staff WEAKNESSESESWEAKNESSESES -Low market share-Low market share -Uncommitted staff-Uncommitted staff -High production costs-High production costs Incompetent leadersIncompetent leaders
  7. 7. StrengthsStrengths WeaknessesWeaknesses OpportunitOpportunit iesies Using strengths toUsing strengths to exploit opportunitiesexploit opportunities CorrectingCorrecting weaknesses toweaknesses to exploitexploit opportunitiesopportunities ThreatsThreats Using strengths toUsing strengths to combat threatscombat threats CorrectingCorrecting weaknesses toweaknesses to combat threatscombat threats
  8. 8. StrengthsStrengths WeaknessesWeaknesses OpportunitOpportunit iesies StrategiesStrategies Expansion/diversifExpansion/diversif yingying Controlled out-Controlled out- sourcing to suchsourcing to such supplierssuppliers Tax ConsultingTax Consulting StrategiesStrategies Acquisition of theAcquisition of the rival/team workrival/team work  Use a whiteUse a white knight/poison pillknight/poison pill ProductProduct innovations/innovations/ developmentsdevelopments ThreatsThreats ControlledControlled expansionexpansion RelationshipRelationship MBOMBO Overall CostOverall Cost LeadershipLeadership
  9. 9. TasksTasks  Read aboutRead about 1.1. Identify the strengths and weaknesses of suchIdentify the strengths and weaknesses of such a model using all the models above. Use a firma model using all the models above. Use a firm of your choiceof your choice 2.2. Discuss-understand and pass SM highly ,Discuss-understand and pass SM highly , become a world class business competititor,become a world class business competititor, and put God first because he is the bestand put God first because he is the best strategist.strategist.
  10. 10. TasksTasks  Read aboutRead about 1.1. Identify the strengths and weaknesses of suchIdentify the strengths and weaknesses of such a model using all the models above. Use a firma model using all the models above. Use a firm of your choiceof your choice 2.2. Discuss-understand and pass SM highly ,Discuss-understand and pass SM highly , become a world class business competititor,become a world class business competititor, and put God first because he is the bestand put God first because he is the best strategist.strategist.

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