Strategic mangement


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Strategic mangement

  3. 3. INTRODUCTION Many people wrongly assume a SWOT analysis is only relevant for business, but it can be invaluable for individuals, organizations and even for team building.
  4. 4. HISTORY OF SWOT ANALYSIS This research was conducted at Stanford Research Institute. It took 10 years from 1960 to 1970. The companies were spending a lot of money paying the managers and they didn’t see the dividends from their investments.
  5. 5. SEVEN KEYS FINDINGS BY THE RESEARCH GROUP  Values  Appraise  Motivation  Search  Select  Program  Act
  6. 6. SWOT ANALYSISUsing your Strength to Strengths Weaknessovercome Weaknesses, Opportunities ThreatsUsing Opportunities to overcome Threats.
  7. 7. THE FOLLOWING DIAGRAM SHOWS HOW ASWOT ANALYSIS FITS INTO A STRATEGICSITUATION ANALYSIS Situation Analysis / Internal Analysis External Analysis / / Strengths Weaknesses Opportunities Threats | SWOT Profile
  8. 8. STRENGTHS Strengths are the qualities that enable us toaccomplish the organization’s mission. Strengthsare the beneficial aspects of the organization orthe capabilities of an organization. For e.g.: Strong brand names Good reputation among customers Favorable access to distribution networks
  9. 9. WEAKNESSES Weaknesses are the qualities that prevent us fromaccomplishing our mission and achieving our fullpotential. These weaknesses deteriorate influences onthe organizational success and growth. For e.g. :lack of patent protection. a weak brand name. poor reputation among customers. Lack of access to best natural resources.
  10. 10. OPPORTUNITIES Opportunities are presented by theenvironment within which our organization operates.These arise when an organization can take benefit ofconditions in its environment to plan and executestrategies that enable it to become more profitable. For e.g.: An unfulfilled customer need. Arrival of new technologies. Loosening of regulations. Removal of international trade barriers.
  11. 11. THREATS Threats arise when conditions in externalenvironment jeopardize the reliability andprofitability of the organization’s business. Theycompound the vulnerability when they relate tothe weaknesses. Threats are uncontrollable.For e.g.: Shifts in consumers tastes away from the firm’s products New regulations. Increased trade barriers.
  13. 13. SIX QUESTIONS TO BE ANSWERED What product/s are we selling? If you are going to start a business or already have a business it is imperative to know what product or service you are going to be selling. What is the process we have in place to sell the products? Today, there are so many different choices; do you sell it online; offline or both. If you are selling the product offline, do you need premises to sell from or can you use your home. Who are our customers, who are going to be interested in our products? As you develop your business you will see who the core group of people who are interested in the products being sold. You might develop a product which is targeted to women in their early 20’s.
  14. 14.  What ways can we deliver our products to our customers? Delivery of a product is very important, and from a business perspective you need to know exactly the costs involved for delivery. What are the finances needed to create & sell this product? This is an area which can make or break a business. You need to know your actual costs before you start to price a product. Who will oversee all the stages from having an idea, to have enough finance to complete the task? Finance is an important part of your business, start with the right information and take time to really look at this aspect of your company
  15. 15. SWOT Analysis Sample TemplateStrengths WeaknessesCriteria examples Criteria examples· Advantages of proposition? · Disadvantages of proposition?· Capabilities? · Gaps in capabilities?· Competitive advantages? · Lack of competitive strength?· Resources, Assets, People? · Reputation, presence and reach?· Experience, knowledge, data? · Financials?· Financial reserves, likely returns? · Own known vulnerabilities?· Marketing - reach, distribution, · Timescales, deadlines and pressures?awareness? · Cash flow, start-up cash-drain?· Innovative aspects? · Continuity, supply chain robustness?· Location and geographical? · Effects on core activities, distraction?· Price, value, quality? · Reliability of data, plan predictability?· Accreditations, qualifications, · Morale, commitment, leadership?certifications? · Accreditations, etc?· Processes, systems, IT, · Processes and systems, etc?communications? · Management cover, succession?· Cultural, attitudinal, behavioral?
  16. 16. · Management cover, succession?· Philosophy and values?Opportunities ThreatsCriteria examples Criteria examples· Market developments? · Political effects?· Competitors vulnerabilities? · Legislative effects?· Industry or lifestyle trends? · Environmental effects?· Technology development and · IT developments?innovation? · Competitor intentions - various?· Global influences? · Market demand?· New markets, vertical, horizontal? · New technologies, services, ideas?· Niche target markets? · Vital contracts and partners?· Geographical, export, import? · Sustaining internal capabilities?· New USP? · Obstacles faced?· Tactics: e.g., surprise, major contracts? · Insurmountable weaknesses?· Business and product development? · Loss of key staff?· Information and research? · Sustainable financial backing?· Partnerships, agencies, distribution? · Economy - home, abroad?· Volumes, production, economies? · Seasonality, weather effects?· Seasonal, weather, fashion influences?
  17. 17. Subjects of SWOT Analysis Business Idea A New product Buying a company or even an asset of our company Buying a partner in a business Strength for business
  18. 18. Advantages It is very simple conceptually, with its four box grid. It facilitates understanding . It supports strategic thinking. It encourages organizations to spot opportunities that might otherwise be missed. It stimulates organizations to anticipate threats and take action now to minimize their impact.
  19. 19. Disadvantages There is a danger of finding so much data that it becomes difficult to understand. Finding the necessary data can be time consuming and difficult. The pace of change may increase the difficulty of anticipating developments. Data may be based on assumptions that turn out to be wrong.
  21. 21. Mc Donalds
  22. 22. Strengths Weaknesses Open door policy to the press Inflexible to changes in market trends Selective supply chain strategy Difficult to find and retain employees Rigorous food safety standards Drive for achieving shareholder value may Affordable prices and high quality counter CSR products Promote unhealthy food Nutritional information available on Promoted CSR meat imports in error packaging Innovative excellence program Promoting ethical conduct ProfitableOpportunities Threats Attractive & flexible employment Fabricated stories about the quality of our Positive environmental commitments chicken Higher standards demanded from Unhealthy foods for children suppliers Health concerns surrounding Beef, Poultry Corporate Responsibility Committee & Fish Honest & real brand image Labor exploitation in CSR at the risk of profit loss Contributor to global warming Local fast food restaurants
  23. 23. NOKIA
  24. 24. Strengths: Weaknesses:• Largest Selling & Distribution Network. • High price of the product.• Financially Strong. • Some products are not user friendly.• Has many profitable Business. • Not targeting promotion towards lower class• No. 1 selling mobile phones in the world. people.• Wide range of products for all class. • Very few & scarce service centers in India.• Re-sell value of Nokia phones are high as • After Sale service is not good.compared to other company phones.Opportunities: Threats:• Wide range of product & features against • Emergence of other mobile companies in thethe competitors. market.• With ‘ Telecom penetration in India’ they • Threats like cheap phones, new features, newcan increase their sales & market shares. style and type, good after sales service to be• It has to target right product at right time to taken care of.gain the most out of the situation. • Make strategies to tackle present & future problems. • Growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer.
  25. 25. CONCLUSION