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SWOT
Analysis
S W O T
SWOT
Analysis
Learning
Objectives
What is SWOT Analysis?
Aim of SWOT Analysis
Who needs SWOTAnalysis?
How to conduct SWOT Analysis?
Benefits & Pitfalls of SWOT Analysis
Example
SWOT
Analys
is
Oppurtunit
y
Threat
s
Strengt
hs
Weakne
ss
Acronym
for
Strengths, Weaknesses,
Opportu nities, and Threats.
Technique is credited to
Albert Humphrey who led a
research project at Stanford
University in the 1960s and
1970s.
Planning tool used to
understand Strengths,
Weaknesses, Opportu nities,
& Threats involved in a project
/ business.
Used as framework for
organizing and using data
and information gained from
situation analysis of internal
and external environment.
Technique that enables a
group / individual to move
from everyday problems /
traditional strategies to a
fresh perspective.
What is SWOT
Analysis?
STRENGT
HS
 Characteristics of the business or a team
that give it an advantage over others in
the industry.
 Positive tangible and intangible
attributes, internal to an organization.
 Beneficial aspects of the organization
or the capabilities of an organization,
which includes human competencies,
process capabilities, financial
resources, products and services,
customer goodwill and brand
 Example Abundant financial
resources, Well-known brand name,
Lower costs [raw materials or
processes], Superior management
talent, Better marketing skills, Good
distribution skills, Committed
employees.
What is SWOT
Analysis?
WEAKNES
SES
 Characteristics that place the firm at a
disadvantage relative to others.
 Detract the organization from its ability
to attain the core goal and influence its
growth.
 Weaknesses are the factors which do not
meet the standards we feel they should
meet. However, weaknesses are
controllable.
 They must be minimized and eliminated.
 Examples - Limited financial resources,
Weak spending on R & D, Very narrow
product line, Limited distribution, Higher
costs, Out-of-date products / technology,
Weak market image, Poor marketing skills,
Limited management skills, Under-trained
What is SWOT
Analysis?
What is SWOT
Analysis?
OPPORTUNITIES
 Chances to make greater profits in the
environment - External attractive factors
that represent the reason for an
organization to exist & develop.
 Arise when an organization can take
benefit of conditions in its
environment to plan and execute
strategies that enable it to become
more profitable.
 Organization should be careful and
recognize the opportunities and grasp
them whenever they arise. Opportunities
may arise from market, competition,
industry/government
 Example: market growth, Changing
customer needs/tastes, New uses for
product discovered, Government
deregulation, Sales decline for a substitute
product .
!
THREA
TS
What is SWOT
Analysis?
 External elements in the environment that
could cause trouble for the business -
 Externalfactors, beyond anorganization’s control,
which could place the organization’s mission or
operation atrisk.
 Arise when conditions in external
environment put loss to the reliability and
profitability of theorganization’s business.
 Threats are uncontrollable. When a threat comes,
the stability and survival can be at stake.
 Examples - Entry of foreign competitors,
Introduction of new substitute products, Product
life cycle in decline, Changing customer
needs/tastes, Rival firms adopt new strategies,
Increased government regulation, Economic
downturn.
SWOT
Analysis
Learning
Objectives
What is SWOT Analysis?
Aim of SWOT Analysis?
Who needs SWOT Analysis?
How to conduct SWOT
Analysis?
Benefits & Pitfalls of SWOT Analysis
Example
S W
T
O
 To help decision makers
share and compare ideas.
 To bring a clearer
common purpose and
understanding of factors
for success.
 To organize the important
factors linked to success
and failure in the business
world.
 To analyze issues that
have led to failure in the
past.
 To provide linearity to
the decision making
process allowing
complex ideas to be
presented
systematically.
Aim of SWOT
Analysis?
SWOT
Analysis
Learning
Objectives
What is SWOT Analysis?
Aim of SWOT Analysis
WhoneedsSWOTAnalysis?
How to conduct SWOT
Analysis?
Benefits & Pitfalls of SWOT Analysis
Example
Job
Holder
• When supervisor has issues
with work output
• Assigned to a new job
• New financial year – fresh
targets
•Job holder seeks to
improve performance on
the job
1
Business
Unit
2
• When the team has not met
its targets
• Customer service can be
better
• Launching a new business
unit to pursue a new business
• New team leader is appointed
Compan
y
• When revenue, cost &
expense targets are not
being achieved
• Market share is declining
• Industry conditions are
unfavorable
• Launching a new business
venture
3
Who needs SWOT
Analysis?
SWOT
Analysis
Learning Objectives
What is SWOT Analysis?
Aim of SWOT Analysis
Who needs SWOT Analysis?
How To Conduct SWOT
Analysis?
Benefits & Pitfalls of SWOT
Analysis
Example
3. Prepare Action
Plans
2. Perform SWOT
Analysis &
Document
1. Analyse Internal
& External
Environment
How to conduct SWOT
Analysis?
How to conduct SWOT
Analysis?
1. Analyse Internal & External
Environment
How to conduct SWOT
Analysis?
3. Prepare Action
Plans
2. Perform SWOT
Analysis &
Document
1. Analyse Internal
& External
Environment
How to conduct SWOT
Analysis?
Create a workshop environment -
------ Encourage an atmosphere
conducive to the free flow of
information.
Allocate research & information gathering
tasks- Background preparation can be
carried out in two stages – Exploratory and
Detailed. Information on Strengths &
Weaknesses should focus on the internal
factors & information on Opportunities &
Threats should focus on the external factors.
Select contributors -
Expert opinion may be
required for SWOT
Establish the objectives -
Purpose of conducting a SWOT
may be wide / narrow, general /
List
Strengths,
Weaknesses, Op
portunities, & threats
How to conduct SWOT
Analysis?
2. Perform SWOT Analysis & Document
Carry your findings forward - Make sure that the
SWOT analysis is used in subsequent planning.
Revisit your
findings at suitable time intervals.
Evaluate listed ideas against Objectives-
With the lists compiled, sort and
group facts and ideas in relation to
the objectives.
3. Prepare Action
Plans
2. Perform SWOT
Analysis &
Document
1. Analyse Internal
& External
Environment
How to conduct SWOT
Analysis?
How to conduct SWOT
Analysis?
3. Prepare Action Plan
Once the SWOT analysis has been completed, mark each
point with:
Things that MUST be addressed immediately
Things that can be handled now
Things that should be researched further
Things that should be planned for the future
SWOT
Analysis
Learning
Objectives
What is SWOT Analysis
Aim of SWOT Analysis
Who needs SWOT Analysis?
How to conduct SWOT
Analysis?
Benefits and pitfalls of SWOT Analysis
Example
Benefits & Pitfalls of SWOT
Analysis
Benefits of SWOT
Analysis
Forecasting
Provides a variety of
information critical to
forecasted variables.
Threats, for e.g., can impact
a business's forecast. By
understanding the company's
advantages &
disadvantages, forecasts will
be more accurate.
Decision Making
Tool
Provides well-
rounded information
that prompt well-
informed decisions.
Knowing the
Competion
Reviews a company's
competitors &
benchmarks against
them to configure
strategies that will put
the company in a
competitive advantage.
Benefits
of SWOT
Analysis
Benefits & Pitfalls of SWOT
Analysis
Helps in setting of objectives for strategic planning
Benefits of SWOT Analysis
Besides the broad benefits, here are few more benefits of conducting SWOT
Analysis:
Provides a framework for identifying &
analyzing strengths, weaknesses,
opportunities & threats
Provides an impetus to analyze a situation & develop suitable
strategies
and tactics
Basis for assessing core capabilities & competencies
Evidence for, and cultural key to, change
Provides a stimulus to participation in a group experience
Benefits & Pitfalls of SWOT
Analysis
Pitfalls of SWOT
Analysis
Can be very subjective. Two people rarely come up with the
same final version of a SWOT. Use it as a guide and not as a
prescription.
May cause organizations to view circumstances as very simple
due to which certain key strategic contact may be overlooked.
Categorizing aspects as strengths, weaknesses, opportunities &
threats
might be very subjective as there is great degree of uncertainty in
market.
To be effective, SWOT needs to be conducted regularly. The
pace of change makes it difficult to anticipate developments.
The data used in the analysis may be based on assumptions that
subsequently prove to be unfounded [good and bad].
It lacks detailed structure, so key elements may get missed.
SWOT
Analysis
Learning
Objectives
What is SWOT Analysis?
Aim of SWOT Analysis
Who needs SWOT Analysis?
How to conduct SWOT
Analysis?
Benefits & Pitfalls of SWOT Analysis
Example
Tips &
Exercise
EXAMPLE
Mc Donald’s SWOTAnalysis
WEAKNES
SES
• Failing pizza test market thus limiting
the ability to compete with pizza
providers.
• High training costs due to high turnover.
• Minimal concentration on organic foods.
• Not much variation in seasonal products .
• Quality concerns due to franchised
operations.
• Focus on burgers / fried foods not on
healthier options for their customers.
•Ranks very high on the Fortune Magazine's
most admired list
• Community oriented
• Global operations all over the world
• Cultural diversity in the foods
• Excellent location
• Assembly line
operations.
• Use of top quality
products
STRENGT
HS
INTERN
AL
• Marketing strategies that entice people
from small children to adults.
• Lawsuits for offering unhealthy foods.
• Contamination risks that include the threat
of e-coli containments.
• The vast amount of fast food restaurants
that are open as competition.
• Focus on healthier dieting by consumers.
• Down turn in economy affecting the ability to
eat that
much.
THREA
TS
• Opening more joint ventures.
• Being more responsive to healthier
options.
• Advertising wifi services in the branches.
• Expanding on the advertising on being
more socially responsible
• Expansions of business into newly
developed parts of the world.
• Open products up
to allergen free
options
such as peanut
free.
OPPORTUNITI
ES
EXTERN
AL
Tips &
Exercise
Mc Donald’s
SWOT
Analysis
Thank
You!

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SWOT Analysis

  • 1. The material used in this presentation i.e., pictures/graphs/text, etc. is solely intended for educational/teaching purpose, offered free of cost to the students for use under special circumstances of Online Education due to COVID-19 Lockdown situation and may include copyrighted material - the use of which may not have been specifically authorised by Copyright Owners. It’s application constitutes Fair Use of any such copyrighted material as provided in globally accepted law of many countries. The contents of presentations are intended only for the attendees of the class being conducted by the presenter. Fair Use Notice
  • 3. SWOT Analysis Learning Objectives What is SWOT Analysis? Aim of SWOT Analysis Who needs SWOTAnalysis? How to conduct SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Example
  • 4. SWOT Analys is Oppurtunit y Threat s Strengt hs Weakne ss Acronym for Strengths, Weaknesses, Opportu nities, and Threats. Technique is credited to Albert Humphrey who led a research project at Stanford University in the 1960s and 1970s. Planning tool used to understand Strengths, Weaknesses, Opportu nities, & Threats involved in a project / business. Used as framework for organizing and using data and information gained from situation analysis of internal and external environment. Technique that enables a group / individual to move from everyday problems / traditional strategies to a fresh perspective. What is SWOT Analysis?
  • 5. STRENGT HS  Characteristics of the business or a team that give it an advantage over others in the industry.  Positive tangible and intangible attributes, internal to an organization.  Beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand  Example Abundant financial resources, Well-known brand name, Lower costs [raw materials or processes], Superior management talent, Better marketing skills, Good distribution skills, Committed employees. What is SWOT Analysis?
  • 6. WEAKNES SES  Characteristics that place the firm at a disadvantage relative to others.  Detract the organization from its ability to attain the core goal and influence its growth.  Weaknesses are the factors which do not meet the standards we feel they should meet. However, weaknesses are controllable.  They must be minimized and eliminated.  Examples - Limited financial resources, Weak spending on R & D, Very narrow product line, Limited distribution, Higher costs, Out-of-date products / technology, Weak market image, Poor marketing skills, Limited management skills, Under-trained What is SWOT Analysis?
  • 7. What is SWOT Analysis? OPPORTUNITIES  Chances to make greater profits in the environment - External attractive factors that represent the reason for an organization to exist & develop.  Arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable.  Organization should be careful and recognize the opportunities and grasp them whenever they arise. Opportunities may arise from market, competition, industry/government  Example: market growth, Changing customer needs/tastes, New uses for product discovered, Government deregulation, Sales decline for a substitute product .
  • 8. ! THREA TS What is SWOT Analysis?  External elements in the environment that could cause trouble for the business -  Externalfactors, beyond anorganization’s control, which could place the organization’s mission or operation atrisk.  Arise when conditions in external environment put loss to the reliability and profitability of theorganization’s business.  Threats are uncontrollable. When a threat comes, the stability and survival can be at stake.  Examples - Entry of foreign competitors, Introduction of new substitute products, Product life cycle in decline, Changing customer needs/tastes, Rival firms adopt new strategies, Increased government regulation, Economic downturn.
  • 9. SWOT Analysis Learning Objectives What is SWOT Analysis? Aim of SWOT Analysis? Who needs SWOT Analysis? How to conduct SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Example
  • 10. S W T O  To help decision makers share and compare ideas.  To bring a clearer common purpose and understanding of factors for success.  To organize the important factors linked to success and failure in the business world.  To analyze issues that have led to failure in the past.  To provide linearity to the decision making process allowing complex ideas to be presented systematically. Aim of SWOT Analysis?
  • 11. SWOT Analysis Learning Objectives What is SWOT Analysis? Aim of SWOT Analysis WhoneedsSWOTAnalysis? How to conduct SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Example
  • 12. Job Holder • When supervisor has issues with work output • Assigned to a new job • New financial year – fresh targets •Job holder seeks to improve performance on the job 1 Business Unit 2 • When the team has not met its targets • Customer service can be better • Launching a new business unit to pursue a new business • New team leader is appointed Compan y • When revenue, cost & expense targets are not being achieved • Market share is declining • Industry conditions are unfavorable • Launching a new business venture 3 Who needs SWOT Analysis?
  • 13. SWOT Analysis Learning Objectives What is SWOT Analysis? Aim of SWOT Analysis Who needs SWOT Analysis? How To Conduct SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Example
  • 14. 3. Prepare Action Plans 2. Perform SWOT Analysis & Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis?
  • 15. How to conduct SWOT Analysis? 1. Analyse Internal & External Environment
  • 16. How to conduct SWOT Analysis?
  • 17. 3. Prepare Action Plans 2. Perform SWOT Analysis & Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis?
  • 18. Create a workshop environment - ------ Encourage an atmosphere conducive to the free flow of information. Allocate research & information gathering tasks- Background preparation can be carried out in two stages – Exploratory and Detailed. Information on Strengths & Weaknesses should focus on the internal factors & information on Opportunities & Threats should focus on the external factors. Select contributors - Expert opinion may be required for SWOT Establish the objectives - Purpose of conducting a SWOT may be wide / narrow, general / List Strengths, Weaknesses, Op portunities, & threats How to conduct SWOT Analysis? 2. Perform SWOT Analysis & Document Carry your findings forward - Make sure that the SWOT analysis is used in subsequent planning. Revisit your findings at suitable time intervals. Evaluate listed ideas against Objectives- With the lists compiled, sort and group facts and ideas in relation to the objectives.
  • 19. 3. Prepare Action Plans 2. Perform SWOT Analysis & Document 1. Analyse Internal & External Environment How to conduct SWOT Analysis?
  • 20. How to conduct SWOT Analysis? 3. Prepare Action Plan Once the SWOT analysis has been completed, mark each point with: Things that MUST be addressed immediately Things that can be handled now Things that should be researched further Things that should be planned for the future
  • 21. SWOT Analysis Learning Objectives What is SWOT Analysis Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Benefits and pitfalls of SWOT Analysis Example
  • 22. Benefits & Pitfalls of SWOT Analysis Benefits of SWOT Analysis Forecasting Provides a variety of information critical to forecasted variables. Threats, for e.g., can impact a business's forecast. By understanding the company's advantages & disadvantages, forecasts will be more accurate. Decision Making Tool Provides well- rounded information that prompt well- informed decisions. Knowing the Competion Reviews a company's competitors & benchmarks against them to configure strategies that will put the company in a competitive advantage. Benefits of SWOT Analysis
  • 23. Benefits & Pitfalls of SWOT Analysis Helps in setting of objectives for strategic planning Benefits of SWOT Analysis Besides the broad benefits, here are few more benefits of conducting SWOT Analysis: Provides a framework for identifying & analyzing strengths, weaknesses, opportunities & threats Provides an impetus to analyze a situation & develop suitable strategies and tactics Basis for assessing core capabilities & competencies Evidence for, and cultural key to, change Provides a stimulus to participation in a group experience
  • 24. Benefits & Pitfalls of SWOT Analysis Pitfalls of SWOT Analysis Can be very subjective. Two people rarely come up with the same final version of a SWOT. Use it as a guide and not as a prescription. May cause organizations to view circumstances as very simple due to which certain key strategic contact may be overlooked. Categorizing aspects as strengths, weaknesses, opportunities & threats might be very subjective as there is great degree of uncertainty in market. To be effective, SWOT needs to be conducted regularly. The pace of change makes it difficult to anticipate developments. The data used in the analysis may be based on assumptions that subsequently prove to be unfounded [good and bad]. It lacks detailed structure, so key elements may get missed.
  • 25. SWOT Analysis Learning Objectives What is SWOT Analysis? Aim of SWOT Analysis Who needs SWOT Analysis? How to conduct SWOT Analysis? Benefits & Pitfalls of SWOT Analysis Example
  • 27. WEAKNES SES • Failing pizza test market thus limiting the ability to compete with pizza providers. • High training costs due to high turnover. • Minimal concentration on organic foods. • Not much variation in seasonal products . • Quality concerns due to franchised operations. • Focus on burgers / fried foods not on healthier options for their customers. •Ranks very high on the Fortune Magazine's most admired list • Community oriented • Global operations all over the world • Cultural diversity in the foods • Excellent location • Assembly line operations. • Use of top quality products STRENGT HS INTERN AL • Marketing strategies that entice people from small children to adults. • Lawsuits for offering unhealthy foods. • Contamination risks that include the threat of e-coli containments. • The vast amount of fast food restaurants that are open as competition. • Focus on healthier dieting by consumers. • Down turn in economy affecting the ability to eat that much. THREA TS • Opening more joint ventures. • Being more responsive to healthier options. • Advertising wifi services in the branches. • Expanding on the advertising on being more socially responsible • Expansions of business into newly developed parts of the world. • Open products up to allergen free options such as peanut free. OPPORTUNITI ES EXTERN AL Tips & Exercise Mc Donald’s SWOT Analysis