Strategy Formation using SWOT

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Strategy Formation using SWOT by StratInsight

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Strategy Formation using SWOT

  1. 1. STRATEGY FORMATION USING SWOT
  2. 2. Framework Summary
  3. 3. SWOT SummaryUsed to identify strategies that align, fit or match an object’sresources and capabilities to the demands and realities of theenvironment in which the object under the analysis operates inHelps identify conversion and consonance strategiesThe aim is to identify the extent to which strengths andweaknesses are relevant to, or capable of dealing with, thechanges taking place in the business environmentSimple to understandVersatile, adaptable and very popular
  4. 4. SWOT SummaryCan be used for companies, organisations, countries and personsCan be used for specific scenarios, situations, products and servicesSWOT analysis is really only useful if it is comparative. If itexamines strengths, weaknesses, opportunities and threats inrelation to competitorsSWOT is credited to Albert S. Humphrey who led a researchproject at the Stanford Research Institute in the 1960s and 70s
  5. 5. DefinitionsStrengthA resource or capability that enables the organisation to build ageneric capability to a standard better than similar organisationPositive tangible and intangible attributes, internal to anorganizationWeaknessA resource or capability that limits the development of a strengthA resource or capability that is underdeveloped or absent from theorganisation, relative to similar organisations
  6. 6. Examples of Strengths and WeaknessesManagementHuman ResourcesValuesMission and VisionStrategyAvailable Financial AssetsProducts and ServicesPublic Image and PerceptionDistribution Channels
  7. 7. Properties of Strengths and WeaknessesA strength and a weakness must be compared relative tosimilar organisations and found exceptional (not ordinary)in some way to be usefulThey represent an advantage or disadvantage
  8. 8. DefinitionsOpportunityIs created by changes to key environmental forces independentlyof the organisationPositive trends and changes that represent the reason for anorganization to exist and developThreatIs created by changes to key environmental forces independentlyof the organisationJeopardises the future and profitability of the organisation’sbusiness
  9. 9. Examples of Opportunities and ThreatsGovernment PoliciesCompetitorsTechnologyPoliticalFinancialEnvironmentalMarketPopulationFashion
  10. 10. Properties of Opportunities and ThreatsOpportunities and Threats must exhibit a change/shift/transformationin some way to be usefulOpportunities and Threats are the forces that theorganisation cannot directly affect
  11. 11. SWOT Structure
  12. 12. Warnings and Limitations of SWOTMeaningless long listsNo prioritisation of itemsHighly subjectiveSubject to politicsMight miss out sensitive and controversial issuesConfuse symptoms with weaknesses and strategies withopportunitiesConfuse internal with external factorsRelies on brainstorming
  13. 13. SWOT ExamplesMicrosoft –November 2012RFID Deployment in a Greek Public Hospital – September 2012DOL (A Greek news and media company) - April 2012
  14. 14. Microsoft – November 2012
  15. 15. RFID Deployment in a GreekPublic Hospital - September 2012
  16. 16. DOL – April 2012
  17. 17. SWOT TipsAsk uncomfortable questionsDon’t leave out sensitive and controversial issuesGet multiple and different perspectivesRemove unnecessary/unimportant itemsAsk around for opinions and feedbackRevisit often and revise as required
  18. 18. What’s Next ?The ultimate purpose is to extract strategies, tactics and actionsMinimize both weaknesses and threatsMaximize both the strengths and opportunitiesUse your strengths to deal with threatsMinimize the weaknesses by taking advantage of the opportunitiesThe method (TOWS) indicates four conceptually distinctalternative strategies, tactics and actionsIn practice some of the strategies overlap, be common orthey may be pursued concurrently and in concert
  19. 19. Strategy Formation
  20. 20. Strategy Formation
  21. 21. Strategy Formation
  22. 22. Strategy Formation
  23. 23. Strategy Formation TipsTry to match specific elements of your SWOT
  24. 24. Strategy Formation TipsTry to match specific elements of your SWOT
  25. 25. Strategy Formation Summary
  26. 26. Strategy Formation ExamplesRFID Deployment in a Greek Public Hospital – September 2012DOL (A Greek news and media company) - April 2012
  27. 27. Maxi-Maxi Strategies for RFID Deployment
  28. 28. Maxi-Mini Strategies for RFID Deployment
  29. 29. Mini-Maxi Strategies for RFID Deployment
  30. 30. Mini-Mini Strategies for RFID Deployment
  31. 31. Maxi-Maxi Strategies for DOL
  32. 32. Maxi-Mini Strategies for DOL
  33. 33. Mini-Maxi Strategies for DOL
  34. 34. Mini-Mini Strategies for DOL
  35. 35. Revisit and Revise as Required
  36. 36. www.stratinsight.grinfo@stratinsight.gr December 2012

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