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SWOT ANALYSIS
 Is usually required when;
 When formulating your strategic direction
 Drawing strategic/business/marketing plans
 Convincing creditors, investors, and top
management about the firm’s future or
strategic direction
 When making your strategic choice/when
modifying the existing strategy or its
tactics/crafting (formulating) a new
strategic
 Internal assessment:
 Strengths
 Weaknesses
 External assessment:
 Opportunities
 Threats
 Which of these are of important or not,
urgent or not, relevant or not in relation
to your strategic direction, strategy to be
used, resources available (feasibility?),
and values of top management?
 A firm needs to:
 Respond to / take advantage of those golden
opportunities
 Cope with and encounter those potentially frustrating
threats
 Correct weaknesses
 Exploit / capitalize on its strengths
 This matching of the SWOT variables/issues results
into SWOT matrix that guides the appropriateness of
your future strategic choice
 Develop a SAP chart for Strengths and weaknesses,
and an ETOP chart for Opportunities and Threats
to decide on the appropriate tactics (actions) to use in
your chosen strategies
 A firm should single out those SWOT
facts that are more urgent, important
and most likely to influence its
strategy/approach to your strategic
direction.
 A firm should also match its strengths
and weaknesses, to its opportunities
and threats in the environment in form
of a SWOT matrix.
Before your SWOT matrix ,ask
yourselves internally
 In what areas have our strengths improved within this period,
and to what extent?
 Where have we managed to counter our weaknesses?
 In which areas of weakness are we continuously deterioting?
 Are we too weak, strong enough, or stable? Are these areas of
importance to us?
 What can we then do with our strengths, and about our areas
of weaknesses?
 Not ignoring those relevant Opportunities and Threats, after
answering those relevant questions, go a head with your
SWOT matrix
OPPORTUNITIES
-Growing market for
our products
-Tax holidays
-Competent-willing
suppliers
THREATS
-Better competititors
-Future hostile take-
over
-Political instability
-Inferior product
range
STRENGTHS
-Strong capital base
-Many loyal customers
-Competent and
customer-centered
staff
WEAKNESSESES
-Low market share
-Uncommitted staff
-High production
costs
Strengths Weaknesses
Opportunit
ies
Using strengths to
exploit opportunities
Correcting
weaknesses to
exploit
opportunities
Threats Using strengths to
combat threats
Correcting
weaknesses to
combat threats
Strengths Weaknesses
Opportunit
ies
Strategies
Expansion/diversif
ying
Controlled out-
sourcing to such
suppliers
Tax Consulting
Strategies
Acquisition of the
rival/team work
 Use a white
knight/poison pill
Product
innovations/
developments
Threats Controlled
expansion
MBO
Overall Cost
Tasks
 Read about
1. Identify the strengths and weaknesses of such
a model using all the models above. Use a firm
of your choice
2. Discuss-understand and pass SM highly ,
become a world class business competititor,
and put God first because he is the best
strategist.

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8 SWOT Analysis.ppt

  • 1. SWOT ANALYSIS  Is usually required when;  When formulating your strategic direction  Drawing strategic/business/marketing plans  Convincing creditors, investors, and top management about the firm’s future or strategic direction  When making your strategic choice/when modifying the existing strategy or its tactics/crafting (formulating) a new strategic
  • 2.  Internal assessment:  Strengths  Weaknesses  External assessment:  Opportunities  Threats  Which of these are of important or not, urgent or not, relevant or not in relation to your strategic direction, strategy to be used, resources available (feasibility?), and values of top management?
  • 3.  A firm needs to:  Respond to / take advantage of those golden opportunities  Cope with and encounter those potentially frustrating threats  Correct weaknesses  Exploit / capitalize on its strengths  This matching of the SWOT variables/issues results into SWOT matrix that guides the appropriateness of your future strategic choice  Develop a SAP chart for Strengths and weaknesses, and an ETOP chart for Opportunities and Threats to decide on the appropriate tactics (actions) to use in your chosen strategies
  • 4.  A firm should single out those SWOT facts that are more urgent, important and most likely to influence its strategy/approach to your strategic direction.  A firm should also match its strengths and weaknesses, to its opportunities and threats in the environment in form of a SWOT matrix.
  • 5. Before your SWOT matrix ,ask yourselves internally  In what areas have our strengths improved within this period, and to what extent?  Where have we managed to counter our weaknesses?  In which areas of weakness are we continuously deterioting?  Are we too weak, strong enough, or stable? Are these areas of importance to us?  What can we then do with our strengths, and about our areas of weaknesses?  Not ignoring those relevant Opportunities and Threats, after answering those relevant questions, go a head with your SWOT matrix
  • 6. OPPORTUNITIES -Growing market for our products -Tax holidays -Competent-willing suppliers THREATS -Better competititors -Future hostile take- over -Political instability -Inferior product range STRENGTHS -Strong capital base -Many loyal customers -Competent and customer-centered staff WEAKNESSESES -Low market share -Uncommitted staff -High production costs
  • 7. Strengths Weaknesses Opportunit ies Using strengths to exploit opportunities Correcting weaknesses to exploit opportunities Threats Using strengths to combat threats Correcting weaknesses to combat threats
  • 8. Strengths Weaknesses Opportunit ies Strategies Expansion/diversif ying Controlled out- sourcing to such suppliers Tax Consulting Strategies Acquisition of the rival/team work  Use a white knight/poison pill Product innovations/ developments Threats Controlled expansion MBO Overall Cost
  • 9. Tasks  Read about 1. Identify the strengths and weaknesses of such a model using all the models above. Use a firm of your choice 2. Discuss-understand and pass SM highly , become a world class business competititor, and put God first because he is the best strategist.