SWOT Analysis


Environment Appraisal

SWOT Analysis .

Typical SWOT Matrix ‡Uncertain cash flow ‡Favorable Location ‡Excellent distribution network ‡ISO 9000 quality trends ‡Favorable industrycertification ‡Established R & d center ‡Low technology options available ‡Good management reputation ‡Possibility of niche target market ‡Availability of reliable business partners ‡Weak management information system‡Unfavorable political environment ‡Absence of strong USP for major ‡Obstacles in licensing new product lines business ‡Low worker commitment ‡Uncertain competitors intentions. ‡Lack of sustainable financial backing .

Steps For Application of SWOT Analysis Setting objectives of Organization Identifying its SWOT Asking 4 questions 1. How do we maximize our strengths ? 2. How do we protect ourselves from threats in our external environment ? Recommending strategies that will optimize the answers from 4 questions . How do we capitalize on the opportunities In our external environment ? 4. How do we minimize our weaknesses ? 3.

Benefits of SWOT Simple to use Low cost Flexible & can be adapted to varying situations Leads to clarifications of issues Development of goal oriented alternatives Useful as a starting point for strategic analysis .

energy sources. national. objectives. etc. attitude of organization towards business. mission.Business Environment of an International. ‡Immediate concerns technology. materials. political systems. & strategies Relevant Environment organization . Organization social changes. raw purpose. ‡Related to org. General Environment demographic variables.

size. complexity ‡ Nature of its market ‡ Information climate Environment related factors ‡ Nature of environment ‡ Environmental uncertainty .Appraising Environment Factors Affecting Environment Appraisal: Strategistrelated Factors ‡ Char. Of strategist ‡ Individual & group char ‡ Interpersonal relations Organization related factors ‡ Nature of business ‡ Age.

Issues. Expectations of different interested group Leads to identification of many issues Judged on the basis: ± Intensity of their impact on the business ± Relative probability of an impact .Identifying Environmental Factors Mass of information Environmental influences are-Events. Trends.

Structuring Environmental Appraisal .

Queries ? .

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