This document discusses strategic planning and the SWOT matrix. It provides background on strategic planning and defines strategies. It then explains the SWOT matrix as a tool for matching external threats and opportunities with internal strengths and weaknesses. The document outlines the four types of SWOT strategies: WO, ST, WT, and SO strategies. It also provides an example of a SWOT matrix analysis conducted for PANELCO III, listing its strengths, weaknesses, opportunities, and threats.

1. SWOT MATRIX
By: Sharon Ayes Mendoza
Master in Development Management
DM 214 Strategic Planning
1st Semester 2013

2. STRATEGIC PLANNING & SWOT
MATRIX
• STRATEGY: greek word ‘strategos’; = general
• Authors Kenneth Andrews, Alfred D. Chandler,
George A Sterner/John B. Miner and Richard
Vancil focus on both the end points (purpose,
mission, goals, objectives) and the means of
achieving them (policies and plans).
Writers Igor H. Ansoff and Charles W. Hofer/Dan
Schendel emphasize the means to the ends in
the strategic process rather than the ends per se.

3. STRATEGIC PLANNING & SWOT
MATRIX
• Based on Heinz Weihrich, Professor of Management at the
University of San Francisco in his paper “The TOWS Matrix--
- A Tool for Situational Analysis”, the word strategies is best
described as:
Strategies are general programs of action and deployment of
emphasis and resources to attain comprehensive
objectives; the program of objectives of an organization
and their changes , resources used to attain these
objectives, and policies governing the acquisition, use, and
disposition of these resources; tile determination of the
basic long-term objectives of an enterprise and the
adoption of courses of action and allocation of resources
necessary to achieve these goals.

4. STRATEGIC PLANNING & SWOT
MATRIX
• STRATEGIC PLANNING : conceptually, strategic
planning is deceptively simple; analyze the
current and expected future situation, determine
the direction of the firm and develop means for
achieving the mission.
In reality, this is an extremely complex process,
which demands a systematic approach for
identifying and analyzing factors external to the
organization and matching them with the firm’s
capabilities.

5. STRATEGIC PLANNING & SWOT
MATRIX
• Many writers on strategic planning suggest
that a firm uses its strengths to take advantage of
opportunities, but they ignore other important
relationships, such as the challenge of
overcoming weaknesses in the enterprise to
exploit opportunities.
WEAKNESS- absence of strength and corporate
development. To overcome an existing weakness
may become a distinct strategy for the company.

6. STRATEGIC PLANNING & SWOT
MATRIX
Figure 1 Strategic Planning Process
Inputs
People
Capital
Managerial
Skills
Technical
Skills
Goals of
Claimants
Enterprise
Profile
Present
External
Environment
Forecast
Of Future
Environment
Resource
Audit
External
Threats and
Opportunities
Alternative
Strategies
Internal
Weaknesses
And Strengths
Evaluation and
Strategic
Choice
Medium
Range
Planning
Short Range
Planning
Implementation
Consistency
Testing
Contingency
Planning

7. SWOT MATRIX
(a Conceptual Framework)
 Matching the environmental threats and
opportunities with the company’s weaknesses
and especially its strengths.
Systematically identifying relationships between
these factors and basing strategies on them.
 Combination of external and internal factors to
the organization and strategies.
 Forces practicing managers to analyze the
situation and to develop strategies, tactics,
actions for the effective and efficient attainment
of mission and goals.

8. ORIGIN
• BUSINESS PORTFOLIO MATRIX
Boston Consulting Group : link between the
business growth rate and the relative competitive
position of the enterprise (identified by the
market share).
Feedback: too simplistic and the growth rate
criterion has been considered insufficient for the
evaluation of the industry’s attractiveness. Also,
the market share as a yardstick for estimating the
competitive position may be inadequate.

9. ORIGIN
• BUSINESS SCREEN
General Electric: two sets of variables: business
strength and industry attractiveness.
Low, Medium and High Ratings
Business Strength: evaluates size, growth, share,
position, profitability, margins and technology
position
Industry Attractiveness: judged in terms of size,
market growth, market diversity, competitive
structure, industry profitability.

10. ORIGIN
Feedback: (Charles W. Hofer & Dan Schendel)
--- does not give adequate attention to new
industries that are beginning to grow.
Suggestion: a MATRIX in which the “competitive
position” and their “stage of product/market
evolution” are plotted.
Similarity of 2 matrixes: insufficient attention to
the threats and constraints in the external
environment.

11. A conceptual framework for a systematic
analysis that facilitates matching the external
threats and opportunities with the internal
weaknesses and strengths of the Organization
(Heinz Weihrich).
What is SWOT MATRIX ?

12. SWOT MATRIX
• According to Weihrich, there are different ways of analyzing the
situation. One is to begin with the identification of important
problems. Second is to start with determining the purpose and
objectives of the firm. A third way is to focus on opportunities. The
question may be raised whether one should start with the analysis
of the external environment or with the firm’s internal resources.
There is no single answer. Indeed, one may deal concurrently with
the two sets of factors: the external and internal environment.
• Remember: this process is just one of several actions.
• PANELCO analysis: the ends will not be emphasized so that
sufficient attention can be given to the analysis of the current
situation.

13. SWOT MATRIX
Step 5. Develop Alternatives
Step 6. Make strategic choices
Consider strategies, tactics,
actions
Step 1-6. Test for Consistency.
Also Prepare Contingency plan
(Step 7)
List Internal
Strengths (S)
List Internal
Weaknesses (W)
Step 2. Identify & Evaluate the ff factors:
a. Economical
b. Social
c. Political
d. Demographic
e. Products & Technology
f. Market & Competition
List External
Opportunities (O):
(Consider Risks Also)
SO: MAXI-MAXI WO: MINI-MAXI
Step 3. Prepare a
Forecast. Make
Predictions & Assessment
of the Future
List External Threats
(T)
ST: MAXI-MINI WT: MINI-MINI
External Factors
Internal Factors
Figure 2 Process of Corporate Strategy and the SWOT Analysis
STEP 1: Prepare an Enterprise Profile: (A) Kind of Business; (B) Geographic Domain; (C)
Competitive Situation; (D) Top Management Orientation
Step 2: Prepare a SW Audit

14. SWOT MATRIX
• External Environment: Threats (T) and
Opportunities (O) may be found in different
areas but commonly we may look at some
categories such as economic, social, political
and demographic factors, products and
services, technology, markets and
competition. The analysis of these factors
pertain not only to the present but even more
important, the future environment.

15. SWOT MATRIX
• Internal Environment: The Strengths (S)
and Weaknesses (W) of an Organization
may be found in management and
organization, operations, finance,
marketing and in other areas.

16. SWOT MATRIX
• Strategies, Tactics and Actions: Strategies may
overlap or may be pursued concurrently.
• Focus: interactions of four sets of variables.
The primary concern here is strategies, but
this analysis could also be applied to the
development of tactics necessary to
implement the strategies and to more specific
actions supportive of tactics.

17. WT Strategy
WO Strategy
ST Strategy
So Strategy
•Mini-mini
•Mini-maxi
•Maxi-mini
•Maxi-maxi
SWOTMATRIX

18. SWOT MATRIX
• The WT Strategy (mini-mini). Minimize both
weaknesses and threats. This is a position that any
organization will try to avoid.
• The WO Strategy (mini-maxi). Minimize the
weaknesses and maximize the opportunities.
• The ST Strategy (maxi-mini). Strengths that can deal
with Threats. Maximize the Strengths and minimize the
Threats. CAUTION: Strength must be used with great
restraint and discretion.
• The SO Strategy (maxi-maxi). Maximize both, utilizing
resources to take advantage of the market.

19. SWOT MATRIX
• even if successful organizations temporarily
use one of the three previously mentioned
strategies, they will attempt to get into a
situation where they can work from strengths
to take advantage of opportunities. If they
have weaknesses, they will strive to overcome
them, making them strengths. If they face
threats, they will cope with them so that they
can focus on opportunities (Long Range
Planning, Heinz Weihrich).

20. SWOT Analysis
Framework
Environmental Scan
Internal analysis External Analysis
Strengths & Weaknesses Opportunities & Threats
SWOT Matrix

21. Strength Weaknesses
Opportunities Threats
In achieving objectives In achieving objectives
InternalOrigin
(AttributesoftheOrganization
ExternalOrigin
(AttributesoftheOrganization

22. STRENGTHS
-things you do well
-experiences in the business or
industry sectors
-key success
(Brainstorms)
WEAKNESSES
-unhappy consumers-why?
-bad brand perception
-slow or bureaucratic
-uncompetitive prices
-disgruntled workforce
(LONG HONEST LOOK @ WHAT YOU
ARE DOING
OPPORTUNITIES
-competitors
-technology (gadgets/software)
(THE IDEA BEHIND BRAINSTORMING IS
TO TAKE YOUR BUSINESS, PROJECT OF
LIFE FORWARD
THREATS
-increasing costs
-new players in the market
-workforce weakness
-cash flow
(PREPARE IN ADVANCE TO MINIMIZE
THE IMPACT)

23. THE PANELCO III SWOT MATRIX
• To produce an objective analysis, a survey
was conducted among PANELCO III employees
(managers/supervisors/staffs).
• Though the issue is highly sensitive, a result
that is critical and objective was tried to
achieve.

24. THE PANELCO III SWOT MATRIX
Strengths
1. On-time payment to Power Supplier (3% discount)
2. Minimal Power Interruption
3. Power Delivery Efficiency
4. 35years on EC operations
5. 2.5B assets
6. Good Load Growth
7. Customer Service
8. 278 regular employees
9. 426 barangays 100% energized

25. THE PANELCO III SWOT MATRIX
Weaknesses
1. High system loss (18% above ERC's standard of 13%)
2. Huge uncollected power bills
3. Too prominent/political member consumers(POLITICS)
4. Lack of manpower
5. Huge expenditures
6. Low employee morale/weak planning of employees'
trainings and workshops to produce a well equipped,
skilled and competent employees (Selected FEW)
7. Leadership skills

26. THE PANELCO III SWOT MATRIX
WEAKNESSES
8. Poor technology advancement
9. Poor Audit/Accounting Procedures
10. Communication Gap (More boss' than leaders)
11. Incorrect manpower placement
12. Negative reaction to change/Resistance to
change
13. Financial and technical management capabilities

27. THE PANELCO III SWOT MATRIX
Opportunities
1. Open Access
2. Rapid urbanization
3. Growing economy
4. Power demand is high
5. Other big companies' investment
6. EPIRA/PD 10531

28. THE PANELCO III SWOT MATRIX
Threats
1. Competitors
2. Political Intervention
3. Increasing Fuel Cost
4. Climate Change
5. Transmission and distribution failures
6. No subsidy from the government

29. PIII SWOT MATRIX
INTERNAL AND EXTERNAL ANALYSIS
INTERNAL ANALYSIS
EXTERNAL ANALYSIS
STRENGTHS (S) WEAKNESSES (W)
OPPORTUNITIES (O) S-O Strategies
Use your strengths to take
advantage of the
opportunities
W-O Strategies
Overcome your
weaknesses by taking
advantage of the
opportunities
THREATS (T) S-T Strategies
Use your strengths to
minimize or avoid the
threats
W-T Strategies
Minimizing your
weaknesses and avoiding
the threats

30. INTERNAL AND EXTERNAL ANALYSIS
INTERNAL ANALYSIS
EXTERNAL ANALYSIS
STRENGTHS (S) WEAKNESSES (W)
OPPORTUNITIES (O) S-O Strategies
-On-time payment: extra fund to
other programs (educ & sports &
seminars)
-more big companies will open its
door for P3’s programs
W-O Strategies
-train the employee, produce more
goal and process oriented staffs
-Re-align/Re-structure/Re-check/Re-
access ---
inventory
auditing
technology
policies &
procedures
icms link.doc payment.jpg
THREATS (T) S-T Strategies
**the threat of merger or buy-
out from other companies**
-continuous improvement
internally
-NEA & PD 10531
W-T Strategies
-POLITICAL INTERVENTION: re
assess the organization’s policies
and procedures
(Politics is always been a sensitive
issue and it is present everywhere, it
is on how well we manage it)
-Big Companies-NEA and PD 10531)

31. THE PANELCO III SWOT MATRIX
Recommendations
1. Deconstruct and Reconstruct
2. Social Obligations
3. Team Building im a leader not a boss.jpg
4. Strict Implementation of RA 7832 & other system loss
reduction program especially in technical and non-
technical aspects icms link.doc payment.jpg
5. United we Stand, Divided we Fall
6. Loyalty Pledge Loyalty pledge.docx
7. TRUST

32. STRATEGIC MANAGEMENT OPTIONS
ACTIVITY
CRITERIA S-O S-T W-O W-T
1 2 3 1 2 3 1 2 3 1 2 3
MAGNITUDE
ACCEPTABILITY
RELEVANCE
DOABILTY
/VIABILTY
COST-EFFECTIVE
IMPACT
SUSTAINABILITY
OTHERS
TOTAL

33. PANELCO III HRMD SWOT MATRIX
Strengths
1. Human Resource Competencies
2. Skilled employees
3. Strict Implementation of Policies
4. Training and Development Opportunities
5. Business Partner and People’s Champ
6. Maturity of Human Resource Management

34. PANELCO III HRD SWOT MATRIX
Weaknesses
1. Politically inclined
2. Lack of manpower/overload (compensation & benefits,
recruitment, attendance, legal matters, medical, manual update
of leave credits, attendance, schedules, memo circular,
counselling, area ocular and uploads)
3. Degree of Commitment
4. Priority Issues
5. Management Influence and Employee Participation
6. Negative reaction to change/resistance
7. Continuity and Monitoring of Programs

35. PANELCO III HRD SWOT MATRIX
Opportunities
1. Trainings and Seminars (ACCREDITED)
2. More defined rules and regulations (PD 10531)
3. Learning updates (NCMB, LMC, NLRC)

36. PANELCO III HRD SWOT MATRIX
Threats
1. Political Intervention

37. PANELCO III HRD SWOT MATRIX
Recommendations
1. Re-assess the organization's policies. (It may be deemed highly
sensitive for PANELCO III, but the management might want to
re-assess the procedures & policies and be firmed about it.
2. Performance Evaluation vis-a-vis merit Increase
3. Reward System (stop/minimize too much politics in
everything)
4. Monitors and close coordination with every departments of all
HR concerns, organizational policies, business procedures and
its implementation and empower the HRMD.
5. Re orientation of all employees/ RE-TOOLING .

38. Some Thoughts to Ponder:
“There can be no harmony
when ideas are framed as
RIGHT vs. WRONG. Have the
flexibility to listen to all
options.” (Robert Kiyosaki)

39. Some Thoughts to Ponder:
1o% of Conflict is due
to wrong opinion, 90%
is due to wrong tone
of voice.

40. Some Thoughts to Ponder:

41. Thank you,
goodnight
& be safe.


42. References:
• PANELCO III Employees (survey form)
• Dr. Josefina B. Bitonio (2013) Readings from
Strategic Planning Course
• The TOWS Matrix---A Tool for Situational
Analysis, Heinz Weihrich, Professor of
Management, University of San Francisco
• http://www.swotmatrix.com/
• http://world.time.com/2013/08/06/no-end-
in-sight-to-the-energy-crisis-that-plagues-the-
philippines/#ixzz2hAh34a4F