This document discusses SWOT analysis, which involves identifying internal strengths and weaknesses of an organization as well as external opportunities and threats. It defines each component of a SWOT analysis - strengths, weaknesses, opportunities, threats - and provides examples. The aims of SWOT analysis are to take advantage of strengths and opportunities while minimizing threats and weaknesses. SWOT analysis helps businesses gain competitive advantages in challenging environments by allowing them to analyze internal/external factors, document findings, and create action plans.

1. SUBMITTED TO: PROF. B.K. KHURANASUBMITTED TO: PROF. B.K. KHURANA
SUBMITTED BY: JASPINDER KAURSUBMITTED BY: JASPINDER KAUR
M.COM(2M.COM(2NDND
SEM.)SEM.)
ROLL NO: 5824ROLL NO: 5824

3. LEARNING OBJECTIVESLEARNING OBJECTIVES
1.1. What is SWOT Analysis?What is SWOT Analysis?
2.2. Aim of SWOT Analysis?Aim of SWOT Analysis?
3.3. Who needs SWOT Analysis?Who needs SWOT Analysis?
4.4. How SWOT helps the BusinessHow SWOT helps the Business
Firms in Gaining CompetitiveFirms in Gaining Competitive
advantage in Challenging Businessadvantage in Challenging Business
Environment?Environment?
5.5. Examples in Real worldExamples in Real world

4. What is SWOT Analysis?What is SWOT Analysis?
 A study undertaken by anA study undertaken by an
organization to identify its internalorganization to identify its internal
strengths and weaknesses, asstrengths and weaknesses, as
well as its externalwell as its external
opportunities and threats.opportunities and threats.
 Some authors credit SWOTSome authors credit SWOT
to Albert Humphrey, whoto Albert Humphrey, who
led a convention at theled a convention at the
Stanford Research InstituteStanford Research Institute
(now SRI International) in(now SRI International) in
the 1960s and 1970s usingthe 1960s and 1970s using
data from Fortune 500data from Fortune 500
companies. However,companies. However,
Humphrey himself did notHumphrey himself did not
claim the creation ofclaim the creation of
SWOT.SWOT.

5. STRENGTHSTRENGTH
 Characteristics of business orCharacteristics of business or
firm that give it an advantagefirm that give it an advantage
over others in the industry.over others in the industry.
 Positive tangible and inPositive tangible and in
tangible attributes, internal totangible attributes, internal to
the organization.the organization.
 Capabilities of theCapabilities of the
organisation the includeorganisation the include
human competencies,human competencies,
process capabilities, financialprocess capabilities, financial
resources, customer goodwillresources, customer goodwill
and brand loyalty.and brand loyalty.
 Examples: superiorExamples: superior
management, committedmanagement, committed
employees etc.employees etc.

6. WEAKNESSWEAKNESS
 Characteristics that place a firmCharacteristics that place a firm
at disadvantage relative toat disadvantage relative to
others.others.
 Weakness are the factors thatWeakness are the factors that
do not meet standards theydo not meet standards they
should meet.should meet.
 These are the incapability ofThese are the incapability of
firms, internal to businessfirms, internal to business
environment.environment.
 Example: insufficientExample: insufficient
Resources, unskilled workers.Resources, unskilled workers.

7. OPPORTUNITYOPPORTUNITY
 External attractive, favorableExternal attractive, favorable
factors that represent the reasonfactors that represent the reason
of existence and growth ofof existence and growth of
business.business.
 External conditions that if carefullyExternal conditions that if carefully
grasped can be proved as milegrasped can be proved as mile
stone in life of business.stone in life of business.
 Examples: Economic Boom,Examples: Economic Boom,
Rapid market growth, changingRapid market growth, changing
need & tastes, change inneed & tastes, change in
monetary or fiscal conditions ofmonetary or fiscal conditions of
country.country.

8. THREATSTHREATS
 External factors that areExternal factors that are
beyond control of organizationbeyond control of organization
and can place company’sand can place company’s
operations or mission at risk.operations or mission at risk.
 Arise when conditions in theArise when conditions in the
Entry of foreign externalEntry of foreign external
environment jeopardize withenvironment jeopardize with
reliability and profitability ofreliability and profitability of
business.business.
 Examples: competition,Examples: competition,
introduction of substitute,introduction of substitute,
increased governmentincreased government
regulation etc.regulation etc.

9. Aim of SWOTAim of SWOT
 BASIC AIM:BASIC AIM: To take advantage of strength andTo take advantage of strength and
opportunity.opportunity.
To minimize threats and weakness.To minimize threats and weakness.
OTHERS:-OTHERS:-
1.1. To help decision maker share and compare ideas.To help decision maker share and compare ideas.
2.2. To bring clearer understanding of factors for success.To bring clearer understanding of factors for success.
3.3. To analyze issue that resulted in failure in past practices.To analyze issue that resulted in failure in past practices.
4.4. To ensure existence and future growth of business andTo ensure existence and future growth of business and
gaining competitive advantage in changing businessgaining competitive advantage in changing business
environment.environment.

10. Who needs SWOTWho needs SWOT
Analysis?Analysis?
 An individualAn individual
 A job seeker & job holderA job seeker & job holder
 A group or TeamA group or Team
 A business unitA business unit
 A companyA company

11. How SWOT helps the Business Firms inHow SWOT helps the Business Firms in
Gaining Competitive advantage inGaining Competitive advantage in
Challenging Business Environment?Challenging Business Environment?
1.Analyze internal &
External Environment
2. Perform SWOT analysis
& Document
3. Set up Action plans

13. ELEMENTS OFELEMENTS OF
ENVIRONMENTENVIRONMENT

14. 2.SWOT ANALYSIS &2.SWOT ANALYSIS &
DOCUMENTSDOCUMENTS
1. Decide the objective of your SWOT analysis.1. Decide the objective of your SWOT analysis.
2. Research your business, industry and market.2. Research your business, industry and market.
3. Prepare a chart showing research conducted in3. Prepare a chart showing research conducted in
first step i.e. analyze the environment.first step i.e. analyze the environment.
4. Evaluate the findings and expert opinion can be4. Evaluate the findings and expert opinion can be
taken.taken.
5. Set up your priorities and prepare necessary5. Set up your priorities and prepare necessary
documents.documents.

15. 3.Prepare & Follow Action plan3.Prepare & Follow Action plan
Once SWOT analysis has been done, markOnce SWOT analysis has been done, mark
each point:each point:
1.1. Things that must be addressedThings that must be addressed
immediatelyimmediately
2.2. Things that can be handled nowThings that can be handled now
3.3. Things that should be researched furtherThings that should be researched further
4.4. Things that should be planned for future.Things that should be planned for future.

16. Choice of strategy by SWOTChoice of strategy by SWOT

17. Examples in Real worldExamples in Real world