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  • 1. SWOT Analysis05 April 2008
  • 2. What is SWOT Analysis? A technique that enables a group or individual to move from everyday problems and traditional strategies to a fresh perspective.
  • 3. SWOT is an acronym for:S – Strengths Internal EnvironmentW – WeaknessesO – Opportunities External EnvironmentT – Threats
  • 4. StrengthAny existing or potential resources or capabilitywithin the organisation that provides a competitiveadvantage 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?
  • 5. WeaknessAny existing or potential force which couldserve as a barrier to maintaining orachieving a competitive advantage in themarket. 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?
  • 6. OpportunityAny existing or potential force in the externalenvironment 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?
  • 7. ThreatAny existing or potential force in the externalenvironment that could erode a competitiveadvantage.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?
  • 8. Aim of SWOT Analysis1. Take advantage of strengths and opportunities.2. Minimise weaknesses and eliminate threats
  • 9. 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
  • 10. 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
  • 11. 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.
  • 12. How to do SWOT Analysis? Step 1 Step 2 Step 3 Analyse Internal Perform SWOT Prepare & External Analysis and Action Plans Environment Document A SWOT analysis is useful only when action plans and strategies are developed from the results
  • 13. Benefits of SWOT Analysis• Solving problems• Implementing change• Developing strategies for achieving the organisation’s objectives and mission
  • 14. Brainstorming – key ingredient for SWOTSWOT 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
  • 15. Some Brainstorming Rules Everyone must No idea is stupid, Build on the ideas of others- participate everyone’s contribution You don’t have to use initial ideas as a jumping is valid and important agree with anyone else -off point for more ideas Always ask questions Seek first to understand•Be open-minded before being understood Have fun!!!
  • 16. Activity #5: Sample Questions Strength Weakness• Which strengths are unique to • What should be done better in the team? the future?• What are we good at doing? • What knowledge do we lack?• What are the things that had • Which skills do we lack? gone well? • What system do we need to change?
  • 17. Activity #5: Sample Questions Opportunities Threats • What are the key success • Barriers to progress enablers? • What are the possible • Which additional services can impacts of what competitors we offer? are doing? • What new market should we • Which regulatory issue might investigate? cause us concern?
  • 18. SWOT Worksheet Strengths Weaknesses
  • 19. SWOT Worksheet Opportunities Threats
  • 20. Activity #6: Strategies & Action Plans S/N What Who When Target 1 2
  • 21. Activity #6: Strategies & Action Plans S/N What Who When Target 3 4
  • 22. Debrief and Lessons LearntActivity #7: Comments from Participants Homework: Do a SWOT analysis for your job. Invite someone to brainstorm with you.