NCRDs Sterling Institute of Management

Project on SWOT ANALYSIS

Subject: COMMUNICATION SKILLS

Submitted to: Prof. SOMALI JOGLEKAR

Submitted By: MMS - Div:A PRIYANKA R. SHINDE(60)

What is SWOT analysis:

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a projector in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.


Strengths: characteristics of the business or team that give it an advantage over others in the industry. Weaknesses: are characteristics that place the firm at a disadvantage relative to others. Opportunities: external chances to make greater sales or profits in the environment. Threats: external elements in the environment that could cause trouble for the business.

 

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

A necessary element of the research necessary preliminary stage in the preparation of any level of strategic and marketing plans. Data obtained because of situational analysis, are basic elements in the development of strategic goals and objectives of the company. It's so convenient universal method that it applies in everyday life. Bad conduct SWOT selfanalysis, in order to understand where to go to career development. Before the interview when hiring a situational analysis will help, evaluate your strength and capabilities to clearly define at what points you will need to emphasize and what to try to leave behind the scenes. It helps to calculate some "tricky questions" of the interviewer and to prepare for the rationale behind their answers. Even many of the everyday problems of development of a simple method to help find

the

right

situation,

an

adequate

solution.

There are various planning techniques that are used in business to run that business in the proper manner. These planning and other similar techniques are essential for the smooth running of a business. Apart from these planning strategies there are several other strategies that are used in your business which are used to check these plans. Many times there are questions like what is swot analysis which are asked by employees of an organization. There are large numbers of websites that an employee could visit to know about this process. It is very essential that all employees especially those who are at higher levels in an organizations know about this question what is swot analysis. This will help them to learn that what all precautions they should take for smooth running of their organization and for planning of different strategies. Swot is basically used to judge strength of a project. After you have developed plans for some project then this mechanism of swot is used at final step of your project to analyze that how powerful there are chances that this project will be completed on time. There are several factors that are related with completeness of project. Risk is involved at each step of development in any particular project. But with help of swot you can decide that how much risk will be there.

Simple rules for successful SWOT analysis.

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Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. SWOT analysis should distinguish between where your organization is today, and where it could be in the future. SWOT should always be specific. Avoid grey areas. Always apply SWOT in relation to your competition i.e. better than or worse than your competition. Keep your SWOT short and simple. Avoid complexity and over analysis SWOT is subjective.

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History of SWOT Analysis

Having arrived on this page you have probably surfed the Internet and scoured books and journals in search of the history of SWOT Analysis. The simple answer to the question What is SWOT? is that there is no simple answer, and one needs to demonstrate a little academic wisdom in that nobody took the trouble to write the first definitive journal paper or book that announced the birth of SWOT Analysis. There are a number of contrasting, if not contradictory views on the origin of SWOT. Here are a few of the leading thinkers on the topic (and if you have more please let us know so that we can add them). There are a number of contrasting, if not contradictory views on the origin of SWOT. Here are a few of the leading thinkers on the topic (and if you have more please let us know so that we can add them). Stanford Universitys Albert Humphrey led a research project in the 1960s-1970s based upon the United States Fortune 500. Humphrey lead a research project which ultimately developed his Team Action Model (TAM) which is a management concept that enables groups of executives to manage change. SWOT was to have originated from his Stakeholders Concept and SWOT Analysis. However, if one proceeds to find out more about the author in academic libraries there is nothing accredited to him. It is unusual for such a prolifically cited piece of research not to have an original definitive publication as its centerpiece. The TAM approach is one of a number that are used by trainers around the World, although for us the crediting to Humphrey as the creator of SWOT cannot be supported. King (2004) also recognized that it was tricky to track down the origins of the acronym SWOT. He cites Haberberg (2000) as stating that SWOT was a concept used by Harvard academics in the 1960s, and Turner (2002) attributing SWOT to Igor Ansoff (1987), of Ansoffs Matrix fame. Koch (2000) considered the contributions of Weihrich (1982), Dealtry (1992) and Wheelan and Hunger (1998). Again whilst these are the commonly accepted views of thinkers on the topic of SWOT, even the common observer would recognize that Weihrich (1982) was not the originator of the concept but rather an innovator of it. As Koch (2004) comments he recognized that a series of SWOT/TOWS analyses had the advantages of a single arbitrary matrix. Wheelan and

Hunger (1998) used SWOT to look for gaps and matches between competences and resources and the business environment. Dealtry (1992) considered SWOT in terms or groups and vectors with common themes and interactions. Shinno et al (2006) amalgamated SWOT analysis with an Analytic Hierarchy Process (AHP) which ranked and prioritized each element using software. Shinno et al (2006) do not really deal with the obvious limitations of SWOT.

McDonald's SWOT Analysis

Strengths
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McDonald's has been a thriving business since 1955 and 20 of the top 50 corporate staff employees started as a restaurant level employee. In addition, 67,000 McDonalds restaurant managers and assistant managers were promoted from restaurant staff. Fortune Magazine 2005 listed McDonald's as the "Best Place to Work for Minorities." McDonalds invests more than $1 billion annually in training its staff, and every year more than 250,000 employees graduate from McDonald's training facility, Hamburger University. The business is ranked number one in Fortune Magazine's 2008 list of most admired food service companies. One of the world's most recognizable logos (the Golden Arches) and spokes character (Ronald McDonald the clown). According to the Packard Children's Hospital's Center for Healthy Weight children age 3 to 5 were given food in the McDonalds packaging and then given the same food without the packaging, and they preferred the food in the McDonald's packaging every single time. McDonalds is a community oriented, socially responsible company. They run Ronald McDonald House facilities, which provide room and board, food and sibling support at a cost of only $10 a day for families with children needing extensive hospital care. Ronald McDonald Houses are located in more than 259 local communities worldwide, and Ronald McDonald Care Mobile programs offers cost effective medical, dental and education services to children. They also sponsor Olympic athletes. They are a global company operating more than 23,500 restaurants in 109 countries. By being spread out in different regions, this gives them the ability to weather economic

fluctuations which are localized by country. They can also operate effectively in an economic downturn due to the social need to seek out comfort foods.

They successfully and easily adapt their global restaurants to appeal to the cultural differences. For example, they serve lamb burgers in India and in the Middle East, they provide separate entrances for families and single women.

Weaknesses
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Their test marketing for pizza failed to yield a substantial product. Leaving them much less able to compete with fast food pizza chains. High employee turnover in their restaurants leads to more money being spent on training. They have yet to capitalize on the trend towards organic foods. McDonald's have problems with fluctuations in operating and net profits which ultimately impact investor relations. Operating profit was $3,984 million (2005) $4,433 million (2006) and $3,879 million (2007). Net profits were $2,602 million (2005), $3,544 million (2006) and $2,395 million (2007).

Opportunities
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In today's health conscious societies the introduction of a healthy hamburger is a great opportunity. They would be the first QSR (Quick Service Restaurant) to have FDA approval on marketing a low fat low calorie hamburger with low calorie combo alternatives. Currently McDonald's and its competition health choice items do not include hamburgers. They have industrial, Formica restaurant settings; they could provide more upscale restaurant settings, like the one they have in New York City on Broadway, to appeal to a more upscale target market. Provide optional allergen free food items, such as gluten free and peanut free. In 2008 the business directed efforts at the breakfast, chicken, beverage and convenience categories. For example, hot specialist coffees not only secure sales, but also mean that restaurants get increasing numbers of customer visits. In 2009 McDonald's saw the full benefits of a venture into beverages.

Threats
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They are a benchmark for creating "cradle to grave" marketing. They entice children as young as one year old into their restaurants with special meals, toys, playgrounds and popular movie character tie-ins. Children grow up eating and enjoying McDonalds and then continue into adulthood. They have been criticized by many parent advocate groups for their marketing practices towards children which are seen as marginally ethical. They have been sued multiple times for having "unhealthy" food, allegedly with addictive additives, contributing to the obesity epidemic in America. In 2004, Michael Spulock filmed the documentary Super Size Me, where he went on an all McDonalds diet for 30 days and wound up getting cirrhosis of the liver. This documentary was a direct attack on the QSR industry as a whole and blamed them for America's obesity epidemic. Due in part to the documentary, McDonalds no longer pushes the super size option at the dive thru window. Any contamination of the food supply, especially e-coli. Major competitors, like Burger King, Starbucks, Taco Bell, Wendy's, KFC and any midrange sit-down restaurants.

McDonald's is the leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women McDonald's is the leading global foodservice retailer with more than 33,000 local restaurants serving more than 64 million people in 118 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women. We serve the world some of its favorite foods - World Famous Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. Our rich history began with our founder, Ray Kroc. The strong foundation that he built continues today with McDonald's vision and the commitment of our talented executives to keep the shine on McDonald's Arches for years to come. To read more about McDonald's history, vision and executives, click on their links in the left menu.

SWOT References Ansoff, H.I. (1987), Corporate Strategy, revised edition, Penguin Books. Brooksbank, R (1996) The BASIC marketing planning process: a practical framework for the smaller business, Journal of Marketing Intelligence & Planning, Vol 14, 4, P 16-23.

Dealtry, R. (1992) Dynamic SWOT Analysis, DSA Associates, Birmingham, Haberberg, A. (2000), "Swatting SWOT", Strategy, (Strategic Planning Society), September. Hill, T. & R. Westbrook (1997), SWOT Analysis: Its Time for a Product Recall, Long Range Planning, 30, No. 1, 46-52. King R.K. (2004), ENHANCING SWOT ANALYSIS USING TRIZ AND THE BIPOLAR CONFLICT GRAPH: A Case Study on the Microsoft Corporation, Proceedings of TRIZCON2004, 6th Annual Altshuller Institute. Koch, A.J. (2000), SWOT Deos Not Need to be Recalled: It Needs to be Enhanced, http://www.westga.edu/~bquest/2001/swot2.htm - accessed 15th September 2008. S.F. Lee, K.K. Lo, Ruth F. Leung, Andrew Sai On Ko (2000), Strategy formulation framework for vocational education: integrating SWOT analysis, balanced scorecard, QFD methodology and MBNQA education criteria, Managerial Auditing Journal Vol 15 (8), pp407-423. Menon, A. et al. (1999), Antecedents and Consequences of Marketing Strategy Making, Journal of Marketing, 63, 18-40. Piercy, N. and Giles, W. (1989) Making SWOT Analysis Work Journal of Marketing Intelligence & Planning, Vol 7, Issue 5/6, P 5-7. Panagiotou, G. (2003) Bringing SWOT into Focus, Business Strategy Review, Vol 14, Issue 2, pp8-10. Shinno, H., Yoshioka, S., Marpaung, S., and Hachiga, S. (2006), Qualitative SWOT analysis on the global competiveness of machine tool industry, Journal of Engineering Design, Vol 17, No.3, June 2006, pp251-258. Tiles, S. (1968), Making Strategy Explicit, in I. Ansoff (ed), Business Strategy, Penguin. Turner, S. (2002), Tools for Success: A Managers Guide. London: McGraw-Hill. Valentin, E.K. (2001), SWOT analysis from a resource-based view - journal of marketing theory and practice, 9(2): 54-68. Wheelan, T.L. and Hunger, J.D. (1998), Strategic Management and Business Policy, 5th Edition, Addison-Wesley, Reading, MA. Weihrich, H. (1982). The Tows Matrix a Tool for Situational Analysis, Long Range Planning, April (60). .