4.2.

3 SWOT analysis SWOT analysis

SWOT ANALYSIS Training Module
A: The story
The SWOT Analysis (= strengths, weaknesses, opportunities, threats) is the last
exercise of the project o!ule !uring the en! of which the participants are
suppose! to ha"e i!entifie! T#$%& projects' (ase! on these concrete project i!eas,
they will ha"e to un!ertake their arket stu!ies'
%t is )uite a siple *ut "ery powerful tool which ena*les the participants to !o a
proper coparison of the last three projects reaining after the icro screening
process+ soeties, there is only one goo! project i!ea left which then will *e cross,
checke! with the help of the SWOT Analysis'
There are alost no "ariations in this exercise across the !ifferent regions where
-$.$ is applie! *ecause the stringent rules of this analysis !on/t lea"e uch roo
for interpretation' The SWOT fraework takes the shape of a tra!itional win!ow with
four parts ()ua!rants)' The upper two of the four )ua!rants representing strengths
an! weaknesses refer partly to the 0$-s an! partly to all other self,inspection tools
carrie! out !uring the entrepreneurial copetencies o!ule'
The lower )ua!rants stan!ing for opportunities an! threats *uil! on the
en"ironent su*,o!ule as well as the participants/ perception an! ju!geent of
the factors influencing their i!entifie! projects' Of course, a certain su*jecti"ity is
always pre"ailing so that the presentation of the group exercise/s an! in!i"i!ual
results is "ery crucial in safeguar!ing o*jecti"ity an! intellectual !epth for the
in!i"i!ual SWOT analyses'
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4.2.3 SWOT analysis SWOT analysis
B: Basic information
O!ecti"es of learning
(asic o*jecti"es to *e
achie"e! *y participants
The participants
, analyse those project i!eas foun! "ia*le after the icro
screening process while utilising the SWOT paraeters
, !eci!e !efinitely on their respecti"e project to *e
planne! !uring the following steps of the -$.$
etho!ology
A!!itional o*jecti"es of a
higher le"el !epen!ing
on the situation an! the
current con!itions of the
target group
The participants
, are a*le to apply this for of analysis for any project
expansion or !i"ersification at a later stage of their
enterprising life
#ses 0roject i!entification
$e"elo%ed in the 6'S'A'+ teste! *y -$.$ in 7epal 3458
-$.$,1anual for Trainers 2 -$.$,%nternational 3445 0age 9
4.2.3 SWOT analysis SWOT analysis
&: 'urther Information
Time for training : ; hrs
(re%aration of rooms , participants organise! in those four groups which ha"e
*een !oing the icro screening exercise
)e*uirements
Trainers<assistants 3 trainer, 3 assistant
=i!actic ai!s to prepare , four swot,analysis ta*les on kraft paper (see swot
analysis fraework, annex 3) with the respecti"e text
prepare! on etaplan car!s (!ifferent colours) for a
*etter "isualisation
1aterials for the trainers
(!uring the exercise)
, coponents of the swot analysis (annex :)
1aterials for the
participants (!uring the
exercise)
, in!i"i!ual swot analysis (annex 9)
%portant con!itions of
the roo
, none
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4.2.3 SWOT analysis SWOT analysis
$: Learning (rocess O"er"ie+
Ste% Time Most im%ortant contents
%ntro!uction 3>/ -oprehension of the SWOT analysis/ fraework
?roup work 8>/ Application of the SWOT analysis fraework for the
group project i!entifie! !uring the prece!ing 1icro
Screening exercise
?roup
presentation
@A/ -riti)uing an! refining of the group SWOT analyses
%n!i"i!ual SWOT
Analysis
8>/ %n!i"i!ual work on ax' three i!entifie! project i!eas
%n!i"i!ual
presentation
:A/ 0resentation of selecte! in!i"i!ual SWOT analyses
0rocessing 3>/ Wrap,up of pre"ious steps an! outlook on the
following ones
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4.2.3 SWOT analysis SWOT analysis
,: Integrated Learning (rocess Organisation -IL(O.
Ste% Time Most Im%ortant &ontents Acti"ities of
Trainer
)ange of
(ossile
Acti"ities of
(artici%ants
)e*uired
Materials
/ints
%ntro!uction 3>/ -oprehension of the
fraework of the
SWOT analysis
explaining+
answering
listening+
asking
)uestions
fraewor
k of swot
analysis
(annex 3)
with text
on
etaplan
car!s
Organise the participants in the
sae four groups as use! !uring
the prece!ing 1icro Screening
exercise'
=e"elop the fraework on the
soft *oar! starting fro the
strengths an! weaknesses (relate
to the 0$-s an! other prece!ing
su*,o!ules)'
?roup work 8>/ Application of the SWOT
analysis fraework for the group
project i!entifie! !uring the
prece!ing 1icro Screening
exercise
super"ising+
pro"i!ing
assistance to
the groups
!iscussing,
writing
etaplan
car!s
8 sets of
3A
etaplan
car!s
each with
!ifferent
colours
Specify that the groups will ha"e
to !eal with their joint strengths
an! weaknesses'
Spen! sufficient tie with each
group in or!er to gui!e the
properly'
The weaknesses an! threats
)ua!rants are usually less taken
care of+ aware the participants in
this respect'
?roup @A/ -riti)uing an! refining of the lea!ing presenting+ 8 group 0ay attention that the car!s are
-$.$,1anual for Trainers 2 -$.$,%nternational 3445 0age >
4.2.3 SWOT analysis SWOT analysis
Ste% Time Most Im%ortant &ontents Acti"ities of
Trainer
)ange of
(ossile
Acti"ities of
(artici%ants
)e*uired
Materials
/ints
presentation group SWOT analyses !iscussion+
pro"oking+
asking
pertinent
)uestions
listening+
!iscussing
swot
analyses
place! in the correct )ua!rants'
1ost iportant phase to grasp the
i!ea of the SWOT analysisB
%n!i"i!ual
SWOT
analysis
8>/ %n!i"i!ual work on ax' three
i!entifie! project i!eas
!istri*uting
annexes 9 an!
:+
super"ising+
pro"i!ing
in!i"i!ual
assistance
writing+
!iscussing
annexes 9
an! :
?ui!e the participants to !eal with
ax' : project i!eas, prefera*ly 9'
Cou ight re)uire ore tie than
:A inutes if all participants
select : project i!eas for SWOT
analysis'
%n!i"i!ual
presentation
:A/ 0resentation of selecte!
in!i"i!ual SWOT analyses
lea!ing
!iscussion+
pro"oking+
asking
pertinent
)uestions
presenting+
listening+
!iscussing
soe
in!i"i!ual
swot
analyses
1ake sure that the "olunteering
participants represent !ifferent
sectors so that all others ight
get a!!itional i!eas for their
in!i"i!uals SWOT analyses'
0ay attention to o*"ious
weaknesses an! threats usually
un!er,estiate! *y the
participants'
=on/t *e too kin!+ pro"oke an!
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4.2.3 SWOT analysis SWOT analysis
Ste% Time Most Im%ortant &ontents Acti"ities of
Trainer
)ange of
(ossile
Acti"ities of
(artici%ants
)e*uired
Materials
/ints
pro"i!e foo! for thoughtB
0rocessing 3>/ Wrap,up of pre"ious steps an!
outlook on the following ones
explaining listening flip chart Ask for their eotions after the
project selection has *een !one'
1ake the aware that there coul!
still *e changes if the arket
sur"eys e"i!ence negati"e
results'
?enerali,
sing
7ot re)uire!
Synthesis See list of articles referring to
this su*ject
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4.2.3 SWOT analysis SWOT analysis
': /ints for %re%aration0 ty%ical situations and dangers
(ase! on the results of the icro screening exercise, the sae groups continue
with the SWOT Analysis' As for the prece!ing exercise, it is *est to prepare alrea!y
four *lank SWOT Analysis ta*les (four )ua!rants) so that no tie is lost in the
*eginning'
The choice of four !ifferent etaplan car! colours for the !ifferent )ua!rants is
a!"isa*le *ecause any car! change! !uring the presentation an! criti)uing phase is
clearly "isi*le to e"ery*o!y' The ore car!s change the )ua!rants after !iscussion,
the less the fraework has *een properly un!erstoo!'
=on/t hesitate to critically )uestion eaning as well as positioning of !ou*tful car!s
!uring the group, an! in!i"i!ual presentation phase *ecause this is the last
opportunity for the participants to e"entually change their project i!eas'
%t/s typical that the participants i!entify less negati"e factors (weaknesses, threats)
than positi"e ones' This coul! create a great !anger to o*jecti"ely taking a final
!ecision on the seeingly ost "ia*le project i!ea'
=uring the in!i"i!ual work phase, it ay happen that soe participants !on/t feel
confi!ent enough to !o the SWOT Analysis' Eisit the regularly !uring this phase
an! gi"e in!i"i!ual gui!ance through appropriate )uestions' As the han!out
-oponents of SWOT Analysis (Annex :) has alrea!y *een !istri*ute! !uring this
phase, urge the to rea! the text an! pro"i!e a!!itional exaples for their specific
cases, if re)uire!'
The lack of confi!ence *ase! on issing arket inforation ight *e o"ercoe
through an integrate! arket "isit (not excee!ing : hours) !uring which the
participants are urge! to collect soe inforation referring to the issues entione!
in Annex : (see also ?'9F axiising)'
-$.$,1anual for Trainers 2 -$.$,%nternational 3445 0age 5
4.2.3 SWOT analysis SWOT analysis
1: 2ariations
3. Alternati"e uses and o!ecti"es
%solate! coponents of a *usiness or an intention for expansion or !i"ersification
can *e !ealt with in the sae way, hence the iportance of pointing out this
possi*ility !uring the wrap,up phase'
4. Minimising5Ma6imising
%n a group of total newcoers without uch prior exposure to *usiness, it is helpful
to let the participants !o a *rief arket research on their pre,selecte! *usiness
i!eas *efore !oing the SWOT Analysis' =epen!ing on your o"erall tie planning,
the respecti"e first weeken! !uring the seinar ight *e utilise! for this purpose
without !istur*ing the planne! execution of the following exercises'
7. Sustitutions
7one
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4.2.3 SWOT analysis SWOT analysis
/: Anne6es
&hart
Anne6 3 SWOT analysis
SWOT Analysis Framework
(ositi"e factors Negati"e factors
to e ca%italised to e eliminated
ST),N1T/S
W,A8N,SS,S
$nuerate strengths an! weaknesses relate! to your specific project i!ea
which can *e controlle! *y the entrepreneur such asF
technical, financial, promotional, networking, knowledge, competencies, etc. factors

$nuerate opportunities an! threats *eyon! the control of
the entrepreneur relate! to your specific project i!ea such asF
sociological, political, demographic, economic, trade-specific, etc. factors
O((O)T#NITI,S T/),ATS
to ma9e use of them to a"oid them
-$.$,1anual for Trainers 2 -$.$,%nternational 3445 0age 3A
4.2.3 SWOT analysis SWOT analysis
/andout
Anne6 4 SWOT analysis
Individual SWOT Analysis
(ositi"e factors Negati"e factors
can e controlled y the entre%reneur
to e ca%italised to e eliminated
ST),N1T/S W,A8N,SS,S

O((O)T#NITI,S
T/),ATS
to ma9e use of them to a"oid them
Beyond the control of the entre%reneur
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4.2.3 SWOT analysis SWOT analysis
/andout
Anne6 7 SWOT analysis
&om%onents of SWOT Analysis
Strengths
Strengths are within the control of the entrepreneur an! they occur at presentB
Strengths shoul! *e ca%italised an! harnesse! to ake weaknesses
re!un!ant'
technical expertise new ipro"eents of pro!uct
goo! network with custoers packaging
anagerial experience superior technology
!istri*ution syste pro!uct features (utility, !ura*ility,
etc')
coparati"ely cheap price
Wea9nesses
Weaknesses are within the control of the entrepreneur+ they occur at present'
They are Glack of'''G, Gissing'''G, or weak points' As far as possi*le, weaknesses
shoul! *e eliminated:
no control o"er raw aterial lack of prootion experience
liite! pro!uct life technological o*solescence
poor !esign of pro!uct inexperience!
anagers<owners
weak selling effort lack of working capital
coparati"ely high price low le"el of stocks in ties of peak
sales
no technical expertise of owner
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4.2.3 SWOT analysis SWOT analysis
O%%ortunities
Opportunities are positi"e or fa"oura*le factors in the en"ironent which the
entrepreneur shoul! ma9e use of or which ake his project i!ea potentially "ia*le'
They are, howe"er, ostly *eyon! the control of the entrepreneur' They are !ifferent
fro strengths in the sense that strengths are positi"e internal factors of the
*usiness'
few an! weak copetitors no such pro!ucts in the arket
rising incoe of target arket scarcity of pro!uct in the
locality
growing !ean! fa"oura*le go"ernent policy
siilar pro!ucts aking profit fa"oura*le go"ernent
progras
technical assistance a"aila*le low interest on loans
access to cheap raw aterial a!e)uate training opportunities
Threats
Threats are negati"e or unfa"oura*le external factors in the en"ironent an!
norally *eyon! the control of the entrepreneur' They a!"ersely affect the *usiness,
if not eliinate! or o"ercoe'
Threats !iffer fro weaknesses in as uch as they are *eyon! the control of the
entrepreneur' (oth ha"e a negati"e ipact on the *usiness' The purpose of
analysing threats is to look for ways of he!ging against the, i'e', trying to a"oid
them or lessening their negati"e ipact *y aking counter*alancing actions'
rising raw aterials costs too uch copetition
go"ernent *ureaucracy resti"e la*our force
raw aterials shortages piracy of skille! la*our
natural !isasters insufficient power
graft an! corruption poor infrastructure
changing go"ernent regulations suggling
-$.$,1anual for Trainers 2 -$.$,%nternational 3445 0age 3:
4.2.3 SWOT analysis SWOT analysis
&o"erage
?enerally speaking, you shoul! co"er the following aspects, while aking a SWOT
analysis for a your project i!eaF
'inancial As%ects (hysical )esources
-apital of owner (uil!ings
-ash flow 0lant H achinery
Access to a!!itional resources Technology < incu*ator parks
%n"estent re)uireent Iocation
0rofita*ility Transport facilities
&isk %nfrastructure H utilities
%n!ustrial flats<estates
Management0 Su%er"isory and
O%erator &a%ailities Mar9et
1anageent copetence 0rofile of target arket
Age<experience -opetitorsJ arketing strategy
Skills a"aila*ility 1arket share
Technological know,how 0ro!uct features<)uality
1anageent contacts<network $xpan!ing<contracting<stagnant ar
ket
Salesanship of owner<staff 1arket niche for new<existing pro!uct
0ersonnel anageent =ean! <supply situations (past, pre
sent, future)
Management Information Su%%ly of )a+ Materials
%s the necessary inforation Are the sources a!e)uate in ters of
a"aila*leK )uantity, )uality H priceK
%s it a"aila*le in tie to ai! in Are new aterials *ecoing a"aila*le
!ecision aking an! in taking which woul! *e useful to the
copanyK
correcti"e actionsK Will they continue to *e a!e)uateK
Social ,n"ironment (roduction (rocess
#ow is the sall *usiness getting %s the pro!uct going to *e ass
a!juste! to the arketsK pro!uce!K
Are people accepting the pro!uctK %s it la*our intensi"eK
%s there any particular preju!ice, %s it a jo* or!er or a continuous
likes or !islikes for the pro!uctK operationK
%s it *ase! on pro!uct or process
technologyK
-$.$,1anual for Trainers 2 -$.$,%nternational 3445 0age 38