SlideShare a Scribd company logo
1 of 30
Download to read offline
SWOT ANALYSIS & BCG MATRIX
Content
•What is SWOT analysis?
•Aim of SWOT analysis.
•Who need SWOT analysis?
•How to conduct SWOT analysis?
•Pitfalls of SWOT analysis.
•BCG Matrix
•Benefits & Limitation
•Conclusion
What is SWOT analysis?
•A technique that enables a group or individual to
move from everyday problems and traditional
strategies to a fresh prospective.
•SWOT analysis looks at your strengths and
weaknesses, and the opportunities and threats
your business faces.
What is SWOT analysis?
Technique is credited to Albert
Humphrey who led a research project
at Stanford University in the 1960s and
1970s.
Used as framework for organizing and
has been adopted by organizations of
all types as an aid to making decisions
SWOT is an acronym for
Strength
Characteristics of the business or a team
that give it an advantage over others in the
industry.
Positive tangible and intangible attributes,
internal to an organization.
Beneficial aspects of the organization or the
capabilities of an organization, process
capabilities, financial resources, products
and services, customer goodwill and brand
loyalty.
Weaknesses
Characteristics that place the firm at a
disadvantage relative to others.
Detract the organization from its ability
to attain the core goal and influence its
growth.
Weaknesses are the factors which do not
meet the standards we feel they should
meet.
However, weaknesses are controllable.
They must be minimized and
eliminated.
OPPORTUNITIES
Chances to make greater profits in the
environment
External attractive factors that represent the
reason for an organization to exist & develop.
Arise when an organization can take benefit
of conditions in its environment to plan and
execute strategies that enable it to become
more profitable.
Organization should be careful and recognize
the opportunities and grasp them whenever
they arise.
THREATS
 External elements in the environment
that could cause trouble for the
business ,beyond an organization’s
control.
 Arise when conditions in external
environment jeopardize the reliability
and profitability of the organization’s
business.
 Threats are uncontrollable. When a
threat comes, the stability and
survival can be at stake.
Aim of SWOT analysis
•To help decision makers share and
compare ideas.
•To bring a clearer common purpose
and understanding of factors for
success.
•To organize the important factors
linked to success and failure in the
business world.
•To provide linearity to the decision
making process allowing complex
ideas to be presented systematically.
Who need 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
Business Unit
When the team has not met its targets
• Customer service can be better
• Launching a new business unit to pursue a new business
• New team leader is appointed
Who need SWOT analysis?
Company
• When revenue, cost & expense targets are not being achieved
• Market share is declining • Industry conditions are unfavourable
• Launching a new business venture
How to conduct SWOT analysis?
1. Analyse Internal & External Environment
2. Perform SWOT Analysis & Document
3. Prepare Action Plans
How to conduct SWOT analysis?
Analyse Internal & External Environment
How to conduct SWOT analysis?
Perform SWOT Analysis & Document
1. Establish the objectives
2. Select contributors
3. Allocate research & information gathering tasks
4. Create a workshop environment
5. List Strengths, Weaknesses, Opportunities, & threats
6. Evaluate listed ideas against objectives
7. Carry your findings forward
How to conduct SWOT analysis?
Prepare Action Plans
 Things that MUST be addressed immediately
 Things that can be handled now
 Things that should be researched further
 Things that should be planned for the future
Pitfalls of SWOT Analysis
 Categorizing aspects as strengths, weaknesses, opportunities & threats
might be very subjective as there is great degree of uncertainty in
market.
 To be effective, SWOT needs to be conducted regularly. The pace of
change makes it difficult to anticipate developments.
 The data used in the analysis may be based on assumptions that
subsequently prove to be unfounded [good and bad].
 It lacks detailed structure, so key elements may get missed.
 Can be very subjective. Two people rarely come up with the same final
version of a SWOT. Use it as a guide and not as a prescription.
BCG MATRIX
Boston Consultancy Group Matrix
 BCG Matrix is developed by Bruce Henderson of the Boston Consulting
Group in the early 1970’s
 A strategic planning tool based on the philosophy that a product’s
market growth rate and market share are important in determining
marketing strategy
 businesses or products are classified as low or high performers
depending upon their market growth rate and relative market share
BCG MATRIX
It is a portfolio planning model
which is based on the observation
that a company’s business units can
be classified in to four categories:
•Stars
•Question marks
•Cash cows
•Dogs
Stars
 High growth, High market share
 Stars are leaders in business
 They also require heavy investment, to maintain its
large market share.
 It leads to large amount of cash consumption and cash
generation.
 Attempts should be made to hold the market share
otherwise the star will become a CASH COW.
CASH COWS
 Low growth , High market share
 They are foundation of the company and often the
stars of yesterday.
 They generate more cash than required.
 They extract the profits by investing as little cash as
possible
 They are located in an industry that is mature, not
growing or declining.
DOGS
 Low growth, Low market share
 Dogs are the cash traps
 Dogs do not have potential to bring in much cash
 Number of dogs in the company should be minimized.
 Business is situated at a declining stage.
Example
QUESTION MARKS
 High growth , Low market share
 Most businesses start of as question marks
 They will absorb great amounts of cash if the market
share remains unchanged, (low)
 Question marks have potential to become star and
eventually cash cow but can also become a dog.
 Investments should be high for question marks.
BENEFITS
 BCG MATRIX is simple and easy to understand.
 It helps you to quickly and simply screen the
opportunities open to you, and helps you think about
how you can make the most of them.
 It provides a base for management to decide and
prepare for future actions.
 It is used to identify how corporate cash resources can
best be used to maximize a company’s future growth
and profitability.
LIMITATIONS
 BCG MATRIX uses only two dimensions, Relative market share and
market growth rate.
 The model neglects small competitors that have fast growing market
shares.
 Sometimes Dogs can earn even more cash as Cash Cows.
 High market share does not mean profits all the time.
 Problems of getting data on market share and market growth.
Conclusion
 Though BCG MATRIX has its limitations it is one of
the most FAMOUS AND SIMPLE portfolio planning
matrix ,used by large companies having multi-
products.
Swot analysis & BCG Mtrix
Swot analysis & BCG Mtrix

More Related Content

What's hot

Group discussion
Group discussionGroup discussion
Group discussionmitupatel
 
Girls Talk Presentation - 4.3.15
Girls Talk Presentation - 4.3.15Girls Talk Presentation - 4.3.15
Girls Talk Presentation - 4.3.15Nicholas_Library
 
Technical Analysis
Technical AnalysisTechnical Analysis
Technical Analysisluv_sharma
 
Coca-Cola Financial Analysis
Coca-Cola Financial AnalysisCoca-Cola Financial Analysis
Coca-Cola Financial AnalysisElie Obeid
 
Solving problems as a leader
Solving problems as a leaderSolving problems as a leader
Solving problems as a leaderST. JAMES COLLEGE
 
Simple scalping secret strategy
Simple scalping secret strategySimple scalping secret strategy
Simple scalping secret strategyHeri Valiant
 
Banking Basics PowerPoint
Banking Basics PowerPointBanking Basics PowerPoint
Banking Basics PowerPointemurfield
 
Candlestick presentation
Candlestick presentationCandlestick presentation
Candlestick presentationJenn Astwood
 
Ratio analysis of Microsoft corporation
Ratio analysis of Microsoft corporationRatio analysis of Microsoft corporation
Ratio analysis of Microsoft corporationMuneeb Ahmed
 
Decision Making Process
Decision Making ProcessDecision Making Process
Decision Making ProcessChelbert Yuto
 
Corporate Finance Automotive Industry Analysis
Corporate Finance Automotive Industry AnalysisCorporate Finance Automotive Industry Analysis
Corporate Finance Automotive Industry AnalysisRobert Petts
 
Barriers to effective decision making by jenrap14
Barriers to effective decision making by jenrap14Barriers to effective decision making by jenrap14
Barriers to effective decision making by jenrap14Jen Rapista
 
A Case Study on Deutsche Bank
A Case Study on Deutsche Bank A Case Study on Deutsche Bank
A Case Study on Deutsche Bank Sultan Mahmood
 

What's hot (20)

Group discussion
Group discussionGroup discussion
Group discussion
 
Girls Talk Presentation - 4.3.15
Girls Talk Presentation - 4.3.15Girls Talk Presentation - 4.3.15
Girls Talk Presentation - 4.3.15
 
Influencing skills
Influencing skillsInfluencing skills
Influencing skills
 
Technical Analysis
Technical AnalysisTechnical Analysis
Technical Analysis
 
Coca-Cola Financial Analysis
Coca-Cola Financial AnalysisCoca-Cola Financial Analysis
Coca-Cola Financial Analysis
 
Solving problems as a leader
Solving problems as a leaderSolving problems as a leader
Solving problems as a leader
 
Simple scalping secret strategy
Simple scalping secret strategySimple scalping secret strategy
Simple scalping secret strategy
 
Critical thinking in Management
Critical thinking in ManagementCritical thinking in Management
Critical thinking in Management
 
Banking Basics PowerPoint
Banking Basics PowerPointBanking Basics PowerPoint
Banking Basics PowerPoint
 
Candlestick presentation
Candlestick presentationCandlestick presentation
Candlestick presentation
 
Financial Repression
Financial RepressionFinancial Repression
Financial Repression
 
Ratio analysis of Microsoft corporation
Ratio analysis of Microsoft corporationRatio analysis of Microsoft corporation
Ratio analysis of Microsoft corporation
 
Emotional Intelligence and Leadership
Emotional Intelligence and LeadershipEmotional Intelligence and Leadership
Emotional Intelligence and Leadership
 
Emotional Intelligence for Leaders
Emotional Intelligence for LeadersEmotional Intelligence for Leaders
Emotional Intelligence for Leaders
 
Trading Strategy
Trading StrategyTrading Strategy
Trading Strategy
 
Decision Making Process
Decision Making ProcessDecision Making Process
Decision Making Process
 
Corporate Finance Automotive Industry Analysis
Corporate Finance Automotive Industry AnalysisCorporate Finance Automotive Industry Analysis
Corporate Finance Automotive Industry Analysis
 
Cognitive biases
Cognitive biasesCognitive biases
Cognitive biases
 
Barriers to effective decision making by jenrap14
Barriers to effective decision making by jenrap14Barriers to effective decision making by jenrap14
Barriers to effective decision making by jenrap14
 
A Case Study on Deutsche Bank
A Case Study on Deutsche Bank A Case Study on Deutsche Bank
A Case Study on Deutsche Bank
 

Similar to Swot analysis & BCG Mtrix

SWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategiesSWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategieseyad-gh
 
Eleven Tips To Build Your Strategic Marketing Planning
Eleven Tips To Build Your Strategic Marketing PlanningEleven Tips To Build Your Strategic Marketing Planning
Eleven Tips To Build Your Strategic Marketing PlanningAndre Vonk
 
Chapter no 8 by BPP BY Aamir Mugheri
Chapter no 8 by BPP BY Aamir MugheriChapter no 8 by BPP BY Aamir Mugheri
Chapter no 8 by BPP BY Aamir MugheriAamir Mugheri
 
SWOT Analysis in Strategic Management.pptx
SWOT Analysis in Strategic Management.pptxSWOT Analysis in Strategic Management.pptx
SWOT Analysis in Strategic Management.pptxOsamaRehman10
 
Ram swot.pdf
Ram swot.pdfRam swot.pdf
Ram swot.pdfLeoBabu3
 
Chapter 11 SWOT ANALYSIS.pdf
Chapter 11 SWOT ANALYSIS.pdfChapter 11 SWOT ANALYSIS.pdf
Chapter 11 SWOT ANALYSIS.pdfKiran Dubb
 
Ram swot-pages-deleted (1).pdf
Ram swot-pages-deleted (1).pdfRam swot-pages-deleted (1).pdf
Ram swot-pages-deleted (1).pdfLeoBabu3
 
swotanalysis-131009002427-phpapp02.pptx
swotanalysis-131009002427-phpapp02.pptxswotanalysis-131009002427-phpapp02.pptx
swotanalysis-131009002427-phpapp02.pptxvibhsSharma
 
SWOT^J BCG and capabilities analysis ppt
SWOT^J BCG and capabilities analysis pptSWOT^J BCG and capabilities analysis ppt
SWOT^J BCG and capabilities analysis pptmrmrsahani
 
Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02givemegold
 
Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02givemegold
 
Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02givemegold
 
What Are My Company’S Strengths And Weaknesses
What Are My Company’S Strengths And WeaknessesWhat Are My Company’S Strengths And Weaknesses
What Are My Company’S Strengths And Weaknessessas1007
 
Swot analysis ppt
Swot analysis pptSwot analysis ppt
Swot analysis pptAjit Kumar
 

Similar to Swot analysis & BCG Mtrix (20)

Bcg matrix
Bcg matrixBcg matrix
Bcg matrix
 
Strategic Planning Models
Strategic Planning ModelsStrategic Planning Models
Strategic Planning Models
 
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategiesSWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
 
Eleven Tips To Build Your Strategic Marketing Planning
Eleven Tips To Build Your Strategic Marketing PlanningEleven Tips To Build Your Strategic Marketing Planning
Eleven Tips To Build Your Strategic Marketing Planning
 
Chapter no 8 by BPP BY Aamir Mugheri
Chapter no 8 by BPP BY Aamir MugheriChapter no 8 by BPP BY Aamir Mugheri
Chapter no 8 by BPP BY Aamir Mugheri
 
SWOT Analysis in Strategic Management.pptx
SWOT Analysis in Strategic Management.pptxSWOT Analysis in Strategic Management.pptx
SWOT Analysis in Strategic Management.pptx
 
Ram swot.pdf
Ram swot.pdfRam swot.pdf
Ram swot.pdf
 
Chapter 11 SWOT ANALYSIS.pdf
Chapter 11 SWOT ANALYSIS.pdfChapter 11 SWOT ANALYSIS.pdf
Chapter 11 SWOT ANALYSIS.pdf
 
Swot Analysis.pptx
Swot Analysis.pptxSwot Analysis.pptx
Swot Analysis.pptx
 
Ram swot-pages-deleted (1).pdf
Ram swot-pages-deleted (1).pdfRam swot-pages-deleted (1).pdf
Ram swot-pages-deleted (1).pdf
 
SWOT Analysis in Strategic Management
SWOT Analysis in Strategic ManagementSWOT Analysis in Strategic Management
SWOT Analysis in Strategic Management
 
swotanalysis-131009002427-phpapp02.pptx
swotanalysis-131009002427-phpapp02.pptxswotanalysis-131009002427-phpapp02.pptx
swotanalysis-131009002427-phpapp02.pptx
 
SWOT^J BCG and capabilities analysis ppt
SWOT^J BCG and capabilities analysis pptSWOT^J BCG and capabilities analysis ppt
SWOT^J BCG and capabilities analysis ppt
 
Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02
 
Swot analysis
Swot analysisSwot analysis
Swot analysis
 
Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02
 
Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02Swotanalysis 131009002427-phpapp02
Swotanalysis 131009002427-phpapp02
 
What Are My Company’S Strengths And Weaknesses
What Are My Company’S Strengths And WeaknessesWhat Are My Company’S Strengths And Weaknesses
What Are My Company’S Strengths And Weaknesses
 
Swot analysis ppt
Swot analysis pptSwot analysis ppt
Swot analysis ppt
 
Swot analysis
Swot analysisSwot analysis
Swot analysis
 

More from UnKnown

Stress management
Stress managementStress management
Stress managementUnKnown
 
Strategic management
Strategic managementStrategic management
Strategic managementUnKnown
 
Small medium enterprise
Small medium enterpriseSmall medium enterprise
Small medium enterpriseUnKnown
 
Risk management
Risk managementRisk management
Risk managementUnKnown
 
Conflict management
Conflict managementConflict management
Conflict managementUnKnown
 
Un principles
Un principlesUn principles
Un principlesUnKnown
 
Elimination of all form of force are compulsory
Elimination of all form of force are compulsoryElimination of all form of force are compulsory
Elimination of all form of force are compulsoryUnKnown
 
Organizational Culture and Environment
Organizational Culture and EnvironmentOrganizational Culture and Environment
Organizational Culture and EnvironmentUnKnown
 
Management History
Management HistoryManagement History
Management HistoryUnKnown
 
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONSINTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONSUnKnown
 
Globalization and its impacts
Globalization and its impactsGlobalization and its impacts
Globalization and its impactsUnKnown
 
Knowledge management
Knowledge managementKnowledge management
Knowledge managementUnKnown
 

More from UnKnown (13)

Stress management
Stress managementStress management
Stress management
 
Strategic management
Strategic managementStrategic management
Strategic management
 
Small medium enterprise
Small medium enterpriseSmall medium enterprise
Small medium enterprise
 
Risk management
Risk managementRisk management
Risk management
 
HRM
HRMHRM
HRM
 
Conflict management
Conflict managementConflict management
Conflict management
 
Un principles
Un principlesUn principles
Un principles
 
Elimination of all form of force are compulsory
Elimination of all form of force are compulsoryElimination of all form of force are compulsory
Elimination of all form of force are compulsory
 
Organizational Culture and Environment
Organizational Culture and EnvironmentOrganizational Culture and Environment
Organizational Culture and Environment
 
Management History
Management HistoryManagement History
Management History
 
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONSINTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
 
Globalization and its impacts
Globalization and its impactsGlobalization and its impacts
Globalization and its impacts
 
Knowledge management
Knowledge managementKnowledge management
Knowledge management
 

Recently uploaded

The Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsThe Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsCIToolkit
 
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic TraitsDigital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic TraitsHannah Smith
 
From Red to Green: Enhancing Decision-Making with Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light AssessmentFrom Red to Green: Enhancing Decision-Making with Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light AssessmentCIToolkit
 
The Final Activity in Project Management
The Final Activity in Project ManagementThe Final Activity in Project Management
The Final Activity in Project ManagementCIToolkit
 
Adapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingAdapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingCIToolkit
 
Overview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationOverview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationPMIUKChapter
 
How Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesHow Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesMassimo Canducci
 
Exploring Variable Relationships with Scatter Diagram Analysis
Exploring Variable Relationships with Scatter Diagram AnalysisExploring Variable Relationships with Scatter Diagram Analysis
Exploring Variable Relationships with Scatter Diagram AnalysisCIToolkit
 
Leveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementLeveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementCIToolkit
 
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & EngineeringBoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & EngineeringBusiness of Software Conference
 
Operations Management -- Sustainability and Supply Chain Management.pdf
Operations Management -- Sustainability and Supply Chain Management.pdfOperations Management -- Sustainability and Supply Chain Management.pdf
Operations Management -- Sustainability and Supply Chain Management.pdfcoolsnoopy1
 
Flowcharting: The Three Common Types of Flowcharts
Flowcharting: The Three Common Types of FlowchartsFlowcharting: The Three Common Types of Flowcharts
Flowcharting: The Three Common Types of FlowchartsCIToolkit
 
The Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsThe Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsCIToolkit
 
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...dsnow9802
 
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...Nagarjuna Reddy Aturi
 
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational DesignManagement 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational Designshakkardaddy
 
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsMind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsCIToolkit
 
Characteristics of professional in professional ethics
Characteristics of professional in professional ethicsCharacteristics of professional in professional ethics
Characteristics of professional in professional ethicsmourale176
 
HOTEL MANAGEMENT SYSTEM PPT PRESENTATION
HOTEL MANAGEMENT SYSTEM PPT PRESENTATIONHOTEL MANAGEMENT SYSTEM PPT PRESENTATION
HOTEL MANAGEMENT SYSTEM PPT PRESENTATIONsivani14565220
 

Recently uploaded (19)

The Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsThe Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data Insights
 
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic TraitsDigital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
 
From Red to Green: Enhancing Decision-Making with Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light AssessmentFrom Red to Green: Enhancing Decision-Making with Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light Assessment
 
The Final Activity in Project Management
The Final Activity in Project ManagementThe Final Activity in Project Management
The Final Activity in Project Management
 
Adapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingAdapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-Making
 
Overview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationOverview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentation
 
How Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesHow Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human Resources
 
Exploring Variable Relationships with Scatter Diagram Analysis
Exploring Variable Relationships with Scatter Diagram AnalysisExploring Variable Relationships with Scatter Diagram Analysis
Exploring Variable Relationships with Scatter Diagram Analysis
 
Leveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementLeveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous Improvement
 
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & EngineeringBoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
 
Operations Management -- Sustainability and Supply Chain Management.pdf
Operations Management -- Sustainability and Supply Chain Management.pdfOperations Management -- Sustainability and Supply Chain Management.pdf
Operations Management -- Sustainability and Supply Chain Management.pdf
 
Flowcharting: The Three Common Types of Flowcharts
Flowcharting: The Three Common Types of FlowchartsFlowcharting: The Three Common Types of Flowcharts
Flowcharting: The Three Common Types of Flowcharts
 
The Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsThe Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data Sets
 
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
 
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
 
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational DesignManagement 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
 
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsMind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
 
Characteristics of professional in professional ethics
Characteristics of professional in professional ethicsCharacteristics of professional in professional ethics
Characteristics of professional in professional ethics
 
HOTEL MANAGEMENT SYSTEM PPT PRESENTATION
HOTEL MANAGEMENT SYSTEM PPT PRESENTATIONHOTEL MANAGEMENT SYSTEM PPT PRESENTATION
HOTEL MANAGEMENT SYSTEM PPT PRESENTATION
 

Swot analysis & BCG Mtrix

  • 1.
  • 2. SWOT ANALYSIS & BCG MATRIX
  • 3. Content •What is SWOT analysis? •Aim of SWOT analysis. •Who need SWOT analysis? •How to conduct SWOT analysis? •Pitfalls of SWOT analysis. •BCG Matrix •Benefits & Limitation •Conclusion
  • 4. What is SWOT analysis? •A technique that enables a group or individual to move from everyday problems and traditional strategies to a fresh prospective. •SWOT analysis looks at your strengths and weaknesses, and the opportunities and threats your business faces.
  • 5. What is SWOT analysis? Technique is credited to Albert Humphrey who led a research project at Stanford University in the 1960s and 1970s. Used as framework for organizing and has been adopted by organizations of all types as an aid to making decisions
  • 6. SWOT is an acronym for
  • 7. Strength Characteristics of the business or a team that give it an advantage over others in the industry. Positive tangible and intangible attributes, internal to an organization. Beneficial aspects of the organization or the capabilities of an organization, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.
  • 8. Weaknesses Characteristics that place the firm at a disadvantage relative to others. Detract the organization from its ability to attain the core goal and influence its growth. Weaknesses are the factors which do not meet the standards we feel they should meet. However, weaknesses are controllable. They must be minimized and eliminated.
  • 9. OPPORTUNITIES Chances to make greater profits in the environment External attractive factors that represent the reason for an organization to exist & develop. Arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organization should be careful and recognize the opportunities and grasp them whenever they arise.
  • 10. THREATS  External elements in the environment that could cause trouble for the business ,beyond an organization’s control.  Arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business.  Threats are uncontrollable. When a threat comes, the stability and survival can be at stake.
  • 11. Aim of SWOT analysis •To help decision makers share and compare ideas. •To bring a clearer common purpose and understanding of factors for success. •To organize the important factors linked to success and failure in the business world. •To provide linearity to the decision making process allowing complex ideas to be presented systematically.
  • 12. Who need 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 Business Unit When the team has not met its targets • Customer service can be better • Launching a new business unit to pursue a new business • New team leader is appointed
  • 13. Who need SWOT analysis? Company • When revenue, cost & expense targets are not being achieved • Market share is declining • Industry conditions are unfavourable • Launching a new business venture
  • 14. How to conduct SWOT analysis? 1. Analyse Internal & External Environment 2. Perform SWOT Analysis & Document 3. Prepare Action Plans
  • 15. How to conduct SWOT analysis? Analyse Internal & External Environment
  • 16. How to conduct SWOT analysis? Perform SWOT Analysis & Document 1. Establish the objectives 2. Select contributors 3. Allocate research & information gathering tasks 4. Create a workshop environment 5. List Strengths, Weaknesses, Opportunities, & threats 6. Evaluate listed ideas against objectives 7. Carry your findings forward
  • 17. How to conduct SWOT analysis? Prepare Action Plans  Things that MUST be addressed immediately  Things that can be handled now  Things that should be researched further  Things that should be planned for the future
  • 18. Pitfalls of SWOT Analysis  Categorizing aspects as strengths, weaknesses, opportunities & threats might be very subjective as there is great degree of uncertainty in market.  To be effective, SWOT needs to be conducted regularly. The pace of change makes it difficult to anticipate developments.  The data used in the analysis may be based on assumptions that subsequently prove to be unfounded [good and bad].  It lacks detailed structure, so key elements may get missed.  Can be very subjective. Two people rarely come up with the same final version of a SWOT. Use it as a guide and not as a prescription.
  • 19. BCG MATRIX Boston Consultancy Group Matrix  BCG Matrix is developed by Bruce Henderson of the Boston Consulting Group in the early 1970’s  A strategic planning tool based on the philosophy that a product’s market growth rate and market share are important in determining marketing strategy  businesses or products are classified as low or high performers depending upon their market growth rate and relative market share
  • 20. BCG MATRIX It is a portfolio planning model which is based on the observation that a company’s business units can be classified in to four categories: •Stars •Question marks •Cash cows •Dogs
  • 21. Stars  High growth, High market share  Stars are leaders in business  They also require heavy investment, to maintain its large market share.  It leads to large amount of cash consumption and cash generation.  Attempts should be made to hold the market share otherwise the star will become a CASH COW.
  • 22. CASH COWS  Low growth , High market share  They are foundation of the company and often the stars of yesterday.  They generate more cash than required.  They extract the profits by investing as little cash as possible  They are located in an industry that is mature, not growing or declining.
  • 23. DOGS  Low growth, Low market share  Dogs are the cash traps  Dogs do not have potential to bring in much cash  Number of dogs in the company should be minimized.  Business is situated at a declining stage.
  • 25. QUESTION MARKS  High growth , Low market share  Most businesses start of as question marks  They will absorb great amounts of cash if the market share remains unchanged, (low)  Question marks have potential to become star and eventually cash cow but can also become a dog.  Investments should be high for question marks.
  • 26. BENEFITS  BCG MATRIX is simple and easy to understand.  It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them.  It provides a base for management to decide and prepare for future actions.  It is used to identify how corporate cash resources can best be used to maximize a company’s future growth and profitability.
  • 27. LIMITATIONS  BCG MATRIX uses only two dimensions, Relative market share and market growth rate.  The model neglects small competitors that have fast growing market shares.  Sometimes Dogs can earn even more cash as Cash Cows.  High market share does not mean profits all the time.  Problems of getting data on market share and market growth.
  • 28. Conclusion  Though BCG MATRIX has its limitations it is one of the most FAMOUS AND SIMPLE portfolio planning matrix ,used by large companies having multi- products.

Editor's Notes

  1. Strengths and weaknesses are internal to the company (think: reputation, patents, location). You can change them over time but not without some work. Opportunities and threats are external (think: suppliers, competitors, prices)—they are out there in the market, happening whether you like it or not. You can’t change them.
  2. Abundant financial resources, Well-known brand name, Economies of scale, Lower costs [raw materials or processes], Superior management talent, Better marketing skills, Good distribution skills
  3. Limited financial resources, Weak spending on R & D, Very narrow product line, Limited distribution, Higher costs, Out-of- date products / technology, Weak market image, Poor marketing skills, Limited management skills, Under- trained employees
  4. Rapid market growth, Rival firms are complacent, Changing customer needs/tastes, New uses for product discovered, Economic boom, Government deregulation, Sales decline for a substitute product .
  5. Entry of foreign competitors, Introduction of new substitute products, Product life cycle in decline, Changing customer needs/tastes, Rival firms adopt new strategies, Increased government regulation, Economic downturn.
  6. Workshop Sessions Brainstorming Meetings Strategic Planning Product Evaluation Competitor Evaluation Personal Development Planning Decision Making Product Launch
  7. 1 Purpose of conducting a SWOT may be wide / narrow, general / specific 2 Expert opinion may be required for SWOT 3 Background preparation can be carried out in two stages – Exploratory and Detailed. Information on Strengths & Weaknesses should focus on the internal factors. 4 Encourage an atmosphere conducive to the free flow of information.
  8. Once the SWOT analysis has been completed, mark each point with: