NOTES ON SWOT ANALYSIS

1. SWOT
ANALISIS MICRO
ENIVORNMENT
MACRO
ENVIRONMENT

2. SWOT ANALYSIS
SWOT STANDS FOR
STRENGTHS
ESESWEAKNESSES
OPPORTUNITIES
THREATS

3. Strengths and weaknesses can be identified by
analyzing the internal environment of a business.
Opportunities and threats can be identified by
analyzing external environment.
SWOT
SWOT Analysis also can be modified into TWOS.
(Threats, Opportunities ,Weakness and Strength)
Strengths and Weaknesses are internal factors.
(Skilled workforce, large number of products and variants etc.).
Opportunities and threats are external factors.
(Favorable market conditions and presence of many competitors).

4. SWOT
Strengths (S)-Strength is an inherent capability which helps a
company to gain strategic advantage over its competitors.
Weaknesses (W)- A weakness is an inherent limitations or
constraints of the company which create strategic disadvantage.
for it. Example: Lack of adequate funds.
Example: Skilled workforce.
Opportunities (O)-An opportunity is a favorable condition in the
company’s external environment which enables it to strengthen its
position.
Example: Growing demand for a product
Threats (s) –A threat is an unfavorable condition in the company’s external
environment which causes a damage or risk to its position.
Example- Increasing competition in the market

5. SWOT ANLYSIS
Strengths(S)
Huge financial resources
Motivated and competent
staff
Latest technology
Well established brands
Strong management team
 Poor financial position
 Inexperienced staff
 Obsolete technology
 Unknown brands
 Weak management
Weaknesses(W)
Liberal government policies
Declining interest rate
Growing markets
Higher disposable income
Opportunities (O) Threats (T)
Increasing competition
Availability of cheaper
substitutes
Political instability
Risk in foreign markets
Changes in taste and
fashion.

6. IMPORTANCE OF SWOT ANALYSIS FOR A BUSINESS UNIT
Helps in the formulation of an effective strategy.
Helps in understanding micro environment and
macro environment of a business.
Helps a firm in matching its strength and
weaknesses with opportunities and threats operating
in the environment.