This document discusses two techniques for business decision making: cost-benefit analysis and SWOT analysis. Cost-benefit analysis involves comparing the estimated costs and benefits of different project options to determine which makes the most business sense. The goal is to maximize total net profit. SWOT analysis examines the strengths, weaknesses, opportunities, and threats of a business or project. It helps identify internal strengths and weaknesses as well as external opportunities and threats. Managers use SWOT analysis to guide strategic planning and evaluate major changes. The document provides guidance on properly conducting a SWOT analysis, including examples of questions to consider for each component. It also outlines how to analyze and apply the results of a SWOT analysis to identify

1. Business
Finance
Eng: Yassin H. Mohamed
MBA,Accounting and finance, BCS, Dip PSSM & Cert.
thaclab25@gmail.com//
Mogadishu Somalia
2

2. Business decision
 Cost-benefit analysis
 SWOT analysis

3. Decision making is a key business skill that drives team
performance and is an inevitable part of successful
companies’ business strategies.
The typical decision-making process is as defining the
problem, gathering information about it, identifying
opportunities, selecting the best options, and tracking the
results.
Cont.

4. When it comes to long-term decision making, as a business owner
or a manager you have to be acquainted with popular techniques
and methods that can help you find the best solution to your
company’s problems.
Cont.

5. Cost-benefit analysis
A cost-benefit analysis is the process of comparing the
projected or estimated cost and benefit (or opportunities)
associated with a project decisions to determine weather it
makes sense from business perspectives or not.
This technique helps business owners and managers to
estimate all future costs and benefits.

6. As a result of this analysis, entrepreneurs opt for one of the
alternatives that will benefit them the most, in terms of total net
profit for the organization.
The main goal of every company is to make profit, moreover, every
decision should be made towards achieving that particular financial
goal.
Cont.

7. SWOT analysis
This popular technique helps managers objectively go
through the current situation and serves as a basic guide
for strategic planning.
When you plan to make a big change in the way you do
business, a SWOT analysis can help you break down the
situation into four different quarters.

8.  Strengths
 Weaknesses
 Opportunities
 Threats
Cont.

9. SWOT Analysis is a useful technique for understanding a
projects Strengths and Weaknesses, and for identifying both
the Opportunities and the Threats the project faces.
Cont.

10. Understanding and use of the tool
Strengths
Strengths are considered from an internal perspective and
from the point of view of project customers/stakeholders.
They are developed in relation to competitors
Guiding questions
• What advantages does the project have?
• What does the project do better than any other/similar
project?

11. • What unique resources can you draw upon that other
projects cannot?
• What do people in your market see as your strengths?
• What is your unique selling proposition?

12. Weaknesses should be considered from an internal point of view
and external i.e. Do other people seem to perceive weaknesses
that you don't see? Are your competitors doing any better than
you?
Guiding questions
• What can you improve?
• What should you avoid?
• What are people in your discipline likely to see as
weaknesses?
• What factors lead to project failure of inadequacy?
Weaknesses

13. Opportunities may be identified by looking at your strengths and
ask whether project strength open up any opportunities.
Alternatively, look at project weaknesses to identify whether the
project can create opportunities by eliminating them.
Guiding questions
• What good opportunities can you envisage?
• What interesting trends are you aware of?
e.g. changes in technology, changes in gov’t policy, changes
in social pattern
Opportunities

14. No project is immune to outside events and forces
Guiding Questions
• What obstacles do you face? Funding, competition,
• What are your competitors doing? Overlapping services
• Are changes in the environment threatening your operation?
Threats

15. Variables Strengths Weaknesses Opportunities Threats Recommendati
ons
Vision/
Mission
Structures
Systems &
procedure
People

16. Group discussion/Coursework Qn
1. Come out with an organisation and Identify three
strengths/weaknesses/opportunities and threats facing your
program/organisation?
2. Analyse the identified strength/weaknesses/opportunity and
threat by identifying one major factor per each to which it is
attributed.
3. Based on the identified factors, propose the most appropriate
actions (strategic issues/Objectives to address the challenges.
4. Based on these issues formulate corresponding Projects to be
implemented.

17. END OF PRESENTATION
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