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
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Outdated technology Acquire competitor with leading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.