SWOT

ANALYSIS
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OVER VIEW ON SWOT

SWOT an acronym that stands for Strengths, Weakness, Opportunities and Threats.

SWOT analysis is a careful evaluation of an organizational internal Strengths and Weaknesses as well as it environmental Opportunities and Threats.
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How SWOT involve to a Firm?

SWOT analysis is a strategic planning method connected with Environmental factors internal to the firm usually can be classified as Strengths or Weaknesses, and those external to the firm can be classified as Opportunities or Threats. Such an analysis is referred to as a SWOT analysis.
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SWOT Analysis Framework

Environmental Scan

Internal Analysis

External Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT Matrix

Management functions
Planning Organizing Leading Controlling

The process of setting goals, developing strategies and outlining task and schedules to accomplish these goals.

Types of planning

Three major types of planning can help the manager to achieve the organizations goals

1)

2)
3)

Strategic plans Tactical plans Art and science of Operational plans planning in
marshalling resources for their most efficient and effective use.
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Phases of strategy
Three

phases of strategy are

Formulation of strategy Implementation of strategy A process in which the Evaluating results manager develop and evaluate strategies alternative and then

select a strategies.

Evaluating an organization Strength

Strength: A firms strengths are its

resources and capabilities that can be used as a basis for developing a competitive advantage. It includes:

Patents Strong brand names Good reputation Cost advantages Exclusive access to high grade resources Favorable access to distribution networks.
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Evaluating an organization weakness Weakness: for an organization include internal limitations and negative situational factors that may interfere the organization mission. It includes:

Lack of patent protection A weak brand name Poor reputation High cost structure Lack of access to the resources

high

grade
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Evaluating an organization opportunities

Opportunities are favorable factors

in the external environment that can help the organization to generate high performance. It includes:
An unfulfilled customer need Arrival of new technologies Loosening of regulations Removal of international trade barriers.

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Evaluating an organization Threats

Threats are unfavorable external
factors that can create difficulty for organization in their performance. It includes:
Shift in customer needs away from the firms service Emergence of substitute Services/products New regulations, and Increased trade barriers.

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SWOT Matrix
Matrix Strengths
Opportunities S-O Strategies Weaknesses
W-O Strategies

Threats

S-T Strategies

W-T Strategies

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SWOT Matrix

S-O strategies- S-O strategies pursue opportunities that are a good fit to the companys strengths. W-O strategies: W-O strategies overcome weaknesses to pursue opportunities. S-T strategies: S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. W-T strategies: W-T strategies establish a defensive plan to prevent the firms weaknesses from making it highly susceptible to external threats.
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