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SITUATIONAL ANALYSIS MODELS
SWOT ANALYSIS
• Know –Different tools to analyse the knowledge of the market and
Surrounding environment in depth.
• Understand-SWOT analysis features, Advantages and limitations of
SWOT model
• Able to-Using SWOT to evaluate the range of factors that influence
business operations which provides valuable guidance in strategic
decision making.
SWOT ANALYSIS
What is it?
• A planning tool
• Assesses for potential risks and rewards
• Considers effectiveness/ success in relation to the business
environment
• Evaluate and adjust strategies
• Helps a company to operate in a competitive environment.
SWOT ANALYSIS
What does it SWOT actually mean?
S
W
O
T
Strengths
Weaknesses
Opportunities
Threats
SWOT ANALYSIS
Strengths
(Internal)
What the
business is
good at that
may help
Weaknesses
(Internal)
What the
business is
bad at that
may harm
You have control over
INTERNAL factors
SWOT ANALYSIS
Opportunities
(External)
Factors
outside the
business
that may
help
Threats
(External)
Factors
outside the
business
that may
harm
You have NO control
over EXTERNAL
factors
TASK
Can you work out where you would put the following factors on the
SWOT analysis: 3 minutes GO!
1. Competitor has gone
bankrupt
2. Experienced workforce
3. High production costs
4. New competitor
5. Growth in demand for
your product
6. Poor location
7. Increased income tax
8. Loyal customers
SWOT: WHY DO IT?
• To help the business set objectives
• To identify the strategies that will help
achieve these objectives
• To observe positive and negative factors
inside and outside the firm that affect the
success.
• To predict the change in trends and help in
the decision-making process of the
organisation.
SWOT ANALYSIS LIMITATIONS
• SWOT Can Oversimplify a Problem
• The Analysis Is Subjective
• Lack of Prioritization
• Framework Structure Only(doesn't provide solutions or offer
alternative decisions)
• Can produce a lot of information, but not all of it is useful.
SWOT ANALYSIS-5 MINUTES
•Declining market share
•Diversity of product range
•Food production is consistent
•Growing dining-out market
•High profit margin
•Large market share
•More health-conscious consumers
•Only serving 1% of the world’s population
•Overseas market
•Products are successful and well liked
•Recession: people have less money
•Strong competition
•Unhappy franchisees
•Weak product development
•Well-known brand name
SWOT ANALYSIS
• There is no point producing a SWOT analysis unless it
is actioned! SWOT analysis should be more than a list
- it is an analytical technique to support strategic
decisions
• Strategy should be devised around strengths and
opportunities
• The key words are match and convert:
SWOT ANALYSIS
• SWOT analysis should be more than a list - it is an analytical technique
to support strategic decisions
SWOT
Weakness Possible Response
Outdated technology Acquire competitor with leading
technology
Skills gap Invest in training & more effective
recruitment
Overdependence on a single
product
Diversify the product portfolio by
entering new markets
Poor quality Invest in quality assurance
High fixed costs Examine potential for outsourcing or
offshoring
A key
challenge for
any business
is to convert
weakness into
strengths.
SWOT
• In Pairs do the swot analysis of UBER.

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Swot

  • 2. SWOT ANALYSIS • Know –Different tools to analyse the knowledge of the market and Surrounding environment in depth. • Understand-SWOT analysis features, Advantages and limitations of SWOT model • Able to-Using SWOT to evaluate the range of factors that influence business operations which provides valuable guidance in strategic decision making.
  • 3. SWOT ANALYSIS What is it? • A planning tool • Assesses for potential risks and rewards • Considers effectiveness/ success in relation to the business environment • Evaluate and adjust strategies • Helps a company to operate in a competitive environment.
  • 4. SWOT ANALYSIS What does it SWOT actually mean? S W O T Strengths Weaknesses Opportunities Threats
  • 5. SWOT ANALYSIS Strengths (Internal) What the business is good at that may help Weaknesses (Internal) What the business is bad at that may harm You have control over INTERNAL factors
  • 6. SWOT ANALYSIS Opportunities (External) Factors outside the business that may help Threats (External) Factors outside the business that may harm You have NO control over EXTERNAL factors
  • 7. TASK Can you work out where you would put the following factors on the SWOT analysis: 3 minutes GO! 1. Competitor has gone bankrupt 2. Experienced workforce 3. High production costs 4. New competitor 5. Growth in demand for your product 6. Poor location 7. Increased income tax 8. Loyal customers
  • 8. SWOT: WHY DO IT? • To help the business set objectives • To identify the strategies that will help achieve these objectives • To observe positive and negative factors inside and outside the firm that affect the success. • To predict the change in trends and help in the decision-making process of the organisation.
  • 9. SWOT ANALYSIS LIMITATIONS • SWOT Can Oversimplify a Problem • The Analysis Is Subjective • Lack of Prioritization • Framework Structure Only(doesn't provide solutions or offer alternative decisions) • Can produce a lot of information, but not all of it is useful.
  • 10. SWOT ANALYSIS-5 MINUTES •Declining market share •Diversity of product range •Food production is consistent •Growing dining-out market •High profit margin •Large market share •More health-conscious consumers •Only serving 1% of the world’s population •Overseas market •Products are successful and well liked •Recession: people have less money •Strong competition •Unhappy franchisees •Weak product development •Well-known brand name
  • 11. SWOT ANALYSIS • There is no point producing a SWOT analysis unless it is actioned! SWOT analysis should be more than a list - it is an analytical technique to support strategic decisions • Strategy should be devised around strengths and opportunities • The key words are match and convert:
  • 12. SWOT ANALYSIS • SWOT analysis should be more than a list - it is an analytical technique to support strategic decisions
  • 13. SWOT Weakness Possible Response Outdated technology Acquire competitor with leading technology Skills gap Invest in training & more effective recruitment Overdependence on a single product Diversify the product portfolio by entering new markets Poor quality Invest in quality assurance High fixed costs Examine potential for outsourcing or offshoring A key challenge for any business is to convert weakness into strengths.
  • 14. SWOT • In Pairs do the swot analysis of UBER.