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SWOT ANALYSIS: Introduction:

SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or 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. he techni!ue is credited to "lbert #umphrey, $ho led a convention at %tanford &niversity in the '()*s and '(+*s using data from ,ortune -** companies. %etting the objective should be done after the %./ analysis has been performed. his $ould allo$ achievable goals or objectives to be set for the organi0ation.

Strengths1 characteristics of the business, or project team that give it an advantage over others Weaknesses (or Limitations)1 are characteristics that place the team at a disadvantage relative to others Opportunities1 external chances to improve performance (e.g. make greater profits) in the environment Threats1 external elements in the environment that could cause trouble for the business or project

Identification of %./ s is essential because subse!uent steps in the process of planning for achievement of the selected objective may be derived from the %./ s. ,irst, the decision makers have to determine $hether the objective is attainable, given the %./ s. If the objective is 2/ attainable a different objective must be selected and the process repeated. he %./ analysis is often used in academia to highlight and identify strengths, $eaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

Background and History of SWOT:

he origins of the %./ analysis techni!ue is credited by "lbert #umphrey, $ho led a research project at %tanford &niversity in the '()*s and '(+*s using data from many top companies.

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he goal $as to identify $hy corporate planning failed. he resulting research identified a number of key areas and the tool used to explore each of the critical areas $as called SOFT analysis. #umphrey and the original research team used the categories 3.hat is good in the present is Satisfactory, good in the future is an Opportunity4 bad in the present is a Fault and bad in the future is a Threat.5 In '()6 &rick and /rr at a conference changed the , to a ., and it has stuck as that, so,t to s.ot %ome researchers reference the '()- publication 3business 7olicy, text and cases5 by Learned, 8hristensen, "ndre$s and 9uth (from #arvard &niversity) in $hich a frame$ork is used $hich closely resembles SWOT, ho$ever these $ords are not used and certainly the frame$ork is not described as succinctly as $e kno$ it today. In this book the terms used are1 opportunities, risks, environment : problems of other industries. In fact these authors reference a course note from ; < "ndre$s 3a concept of corporate strategy 3for much of the strategy frame$ork. /n its o$n, it is said that a SWOT is meaningless. It $orks best $hen part of an overall strategy or in a given context or situation. his strategy may be as simple as1 '. 9oal or objective 2 SWOT analysis =. >valuation or measures of success strategy 6. "ction his is sometimes kno$n as the 6"s model ? "im, "ssess, "ctivate and "pply $here1

Ai! ? is the 9oal or objective Ass"ss ? is the SWOT revie$ itself Acti#at" ? identify the strengths or measures of success and use them to advantage Apply @ take action

Int"rnal $ %&t"rnal factors:

he aim of any %./ analysis is to identify the key internal and external factors that are important to achieving the objective. hese come from $ithin the companyAs uni!ue value chain. %./ analysis groups key pieces of information into t$o main categories1

Internal factors ? he strengths and $eaknesses internal to the organi0ation. >xternal factors ? he opportunities and threats presented by the external environment to the organi0ation.

he internal factors may be vie$ed as strengths or $eaknesses depending upon their impact on the organi0ationAs objectives. .hat may represent strengths $ith respect to one objective may be $eaknesses for another objective. he factors may include all of the 67As4 as $ell as personnel, finance, manufacturing capabilities, and so on. he external factors may include

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macroeconomic matters, technological change, legislation, and socio@cultural changes, as $ell as changes in the marketplace or competitive position. he results are often presented in the form of a matrix. %./ analysis is just one method of categori0ation and has its o$n $eaknesses. ,or example, it may tend to persuade companies to compile lists rather than think about $hat is actually important in achieving objectives. It also presents the resulting lists uncritically and $ithout clear prioriti0ation so that, for example, $eak opportunities may appear to balance strong threats. It is prudent not to eliminate too !uickly any candidate %./ entry. he importance of individual %./ s $ill be revealed by the value of the strategies it generates. " %./ item that produces valuable strategies is important. " %./ item that generates no strategies is not important.

's" of SWOT:
he usefulness of %./ analysis is not limited to profit@seeking organi0ations. %./ analysis may be used in any decision@making situation $hen a desired end@state (objective) has been defined. >xamples include1 non@profit organi0ations, governmental units, and individuals. %./ analysis may also be used in pre@crisis planning and preventive crisis management. %./ analysis may also be used in creating a recommendation during a viability study /survey.

SWOT (atri&:
)OSITI*%+ H%L)F'L to ac,i"#ing t," goal INT%.NAL Origin facts/ factors of the organi0ation Str"ngt,s hings that are good no$, maintain them, build on them and use as leverage Opportuniti"s hings that are good for the future, prioriti0e them, capture them, build on them and optimi0e N%-ATI*%+ HA.(F'L+ .IS/S to ac,i"#ing t," goal

W"akn"ss"s hings that are bad no$, remedy, change or stop them. T,r"ats hings that are bad for the future, put in plans to manage them or counter them

%0T%.NAL Origin facts/ factors of the environment in $hich the organi0ation operates

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Ho1 to do a SWOT analysis:

Irrespective of $hether you or your team are future planning for specific products, $ork, personal or any other area, the SWOT analysis process is the same.

St"p 2 ? Information collection ? In the here and no$B List all strengths that exist no$. hen in turn, list all $eaknesses that exist no$. Ce realistic but avoid modestyD Eou can conduct one@on@one intervie$s. /r get a group together to brainstorm. " bit of both is fre!uently best. EouFll first $ant to prepare !uestions that relate to the specific company or product that you are analy0ing. EouFll find some !uestions and issues belo$ to get you going. .hen facilitating a SWOT ? search for insight through intelligent !uestioning and probing St"p 2 ? .hat might beB List all opportunities that exist in the future. /pportunities are potential future strengths. hen in turn, list all threats that exist in the future. hreats are potential future $eaknesses. St"p 3 ? 7lan of actionB <evie$ your SWOT matrix $ith a vie$ to creating an action plan to address each of the four areas.

Ai! of SWOT analysis: <eveal your competitive advantages "naly0e your prospects for sales, profitability and product development 7repare your company for problems "llo$ for the development of contingency plans " %./ analysis is a process to identify $here you are strong and vulnerable G $here you should defend and attack. he result of the process is a Hplan of actionF, or Haction planF.

he analysis can be performed on a product, on a service, a company or even on an individual. Ione properly, %./ $ill give you the CI9 7I8 &<> of the J/% IJ7/< "2 ,"8 /<% that influence %&<KIK"L and 7</%7><I E. "s $ell as a 7L"2 to "8 /2. .ul"s for succ"ssful SWOT analysis:

Ce realistic about the strengths and $eaknesses of your organi0ation he "nalysis should distinguish bet$een $here your organi0ation is today, and $here it could be in the future. Ce specific. "void gray areas "l$ays analy0e in relation to your competition i.e. better than or $orse than your competition

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;eep your %./ short and simple ? but only as short and simple as the application or situation demands ? it is about Hfitness for purposeF "void unnecessary complexity and over analysis here is no point listing an opportunity (/) if the same opportunity is available to competitors It is pointless to say you have strengths (%) if your competitors have the same

S1ot cas" study:

Str"ngt,: Jr. Jahesh pandya got this project through a common friend of him $ho is established and $orking among the top '** companies of &%. In '(() mr. Jahesh pandya took up this project as his brother in la$ $ith dre$. he main strengths according to him are 8apability1 he $orked for about = months and arrived ang got this company at a concrete manufacturing process. 2ot dependant1 the supervising is not dependant upon anyone. he proprietor initially supervises the manufactures. 7rofitability1 in accordance to dollar has al$ays envisaged the cushioning. Logistics1 the main client is of #ouston, &%". Cut due to time basis the office has been shifted to %ingapore as it is easy to operate as get sooner deliveries.

W"akn"ss"s: he $hole business is single client based, the main client sells the product to other clients. %o direct involvement of client is not $ith the proprietor of company. Kalue addition isnFt good. Cetter profits are enjoyed buy the main client.

Opportuniti"s: Jarketing is taken care by the principle buyer so there are no opportunities for this company. "s they cannot get to kno$ about the client re!uirements.Jore profit at times due to dollar currency. "s dollar is appreciated.

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T,r"ats: 8urrent market price1 if it falls do$n then it is a loss for the business he major threat is single client business 8ompetition is natural threat and common threat in all the business