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This all content about SWOT analysis TOWS analysis SWOT matrix and TOWS matrix. Identifying Strength Opportunities, Weakness, Threats which can be useful for your organization management.
Undertaking a SWOT analysis
Posted by Neni Manize This checklist is for those carrying out a SWOT analysis, SWOT being the acronym for Strengths, Weaknesses, Opportunities and Threats. It is a simple, much-used technique which can help to prepare or amend plans, in problem solving and decision making. Definition SWOT analysis is a general technique which can be applied across diverse functions and activities, but it is particularly appropriate to the early stages of planning for a TIPD visit. Performing a SWOT analysis involves the generation and recording of the strengths, weaknesses, opportunities, and threats in relation to a particular task or objective. It is customary for the analysis to take account of internal resources and capabilities (strengths and weakness) and factors external to the organisation (opportunities and threats).
Benefits SWOT analysis can provide:
y y y
a framework for identifying and analysing strengths, weaknesses, opportunities and threats an impetus to analyse a situation and develop suitable strategies and tactics a basis for assessing core capabilities and competences
the evidence for, and cultural key to, change a stimulus to participation in a group experience.
Action checklist 1. Establish the objectives The first key step in any project: is to be clear on what you are doing and why. The purpose of conducting a SWOT may be wide or narrow, general or specific. 2. Select appropriate contributors. Important if the final outcome is to result from consultation and discussion, not just personal views, however expert. 3. Allocate research and information gathering tasks. Background preparation is a vital stage for the subsequent analysis to be effective, and should be divided among the SWOT participants. This preparation can be carried out in two stages: exploratory, followed by data collection, and detailed, followed by a focused analysis. Gathering information on Strengths and Weaknesses should focus on the internal factors of skills, resources and assets, or lack of them. Gathering information on Opportunities and Threats should focus on the external factors over which you have little or no control, such as social or economic factors. 4. Create a workshop environment. If compiling and recording the SWOT lists takes place in meetings, then do exploit the benefits of workshop sessions. Encourage an atmosphere conducive to the free flow of information and to participants saying what they feel to be appropriate, free from blame. The leader / facilitator has a key role and should allow time for free flow of thought, but not too much. Half an hour is often enough to spend, for example, on Strengths, before moving on. It is important to be specific, evaluative and analytical at the stage of compiling and recording the SWOT lists - mere description is not enough. 5. List Strengths. Strengths can relate to the group, to the environment, to perceptions, and to people. "People" elements include the skills, capabilities and knowledge of participants. Other people strengths include:
friendly, cooperative and supportive participants appropriate levels of involvement through delegation and trust.
6. List Weaknesses This session should not constitute an opportunity to focus on the negative but be an honest appraisal of the way things are. Key questions include:
y y y
what obstacles may prevent progress? which elements need strengthening? are there any real weak links in the chain?
It is not unusual for "People" problems - poor communication, inadequate leadership, lack of motivation, too little delegation and no trust - to feature among the major weaknesses. 7. List Opportunities
This step is designed to assess the socio-economic, environmental and demographic factors, among others, to evaluate the benefits they may bring to the TIPD visit. Examples include:
the availability of new technology
Most external factors are in fact challenges. and whether the groups perceives them as opportunities or threats is often a valuable indicator of morale. Revisit your findings at suitable time intervals e. sort and group facts and ideas in relation to the objectives. Ignore the outcomes at later stages of the planning process. Carry your findings forward Make sure that the SWOT analysis is used in subsequent planning.Bear in mind just how long opportunities might last and how the group may take best advantage of them. Allow the SWOT to become a blame-laying exercise.g. Weighing threats against opportunities is not a reason to indulge in pessimism. Dos Do y y y y y and don'ts for SWOT analysis Be analytical and specific. Lose sight of external influences and trends. example. a clear picture should. 10. 9. have an adverse impact. It may be necessary for the SWOT participants to select their five most important items from the list in order to gain a wider view. Choose the right people for the exercise. as evaluation and elimination will be necessary to cull the wheat from the chaff. Although some aspects may require further information or research. at this stage. with a shift of emphasis or perception.Application of the TOWS Matrix to Volkswagen Posted by Neni Manize . Information Technology. Record all thoughts and ideas in stages 5-8. Evaluate listed ideas against Objectives With the lists compiled. it is rather a question of considering how possible negative experience may be limited or eliminated. start to emerge in response to the objectives. comments (1) | Case Study. List Threats The opposite of Opportunities . Don't y y y y y Try to disguise weaknesses. Choose a suitable SWOT leader or facilitator. Clarity of objectives is key to this process.which may. on return from you visit to check that they are still valid. Be selective in the final evaluation. Merely list errors and mistakes. The same factors may emerge as both a threat and an opportun for ity. 8.
TOWS Analysis is an effective way of combining a) internal strengths with external opportunities and threats. The TOWS Matrix shown in Figure 1 will focus on the crucial period from late 1973 to early 1975. the building block principle was employed in the design of the new cars. For example. Strengths and Threats (ST) One of the greatest threats to VW was the continuing appreciation of the Deutsche Mark against the dollar. Another weakness at VW was the rising costs in Germany. In other words. a model with features later adopted by many other car manufacturers. increased fuel costs made the shipping of cars to the United States more costly. VW was forced to build an assembly plant in the United States. a more appropriate strategy was to attempt to overcome the weaknesses and develop them into strengths. For example. in 1973 wages and salaries rose 19 per cent over the previous year. The result. was a less competitive posture. To overcome this weakness. This situation favored setting up an assembly plant in the United States. but a similar situation prevailed in Europe at that time. This allowed using the same parts for different models that ranged from the relatively low-priced Rabbit to the higher priced Audi line. from October 1972 to November 1973 the mark appreciated 35 percent. but then developed a strategy that resulted in an excellent market position in the late 1970s. and b) internal weaknesses with external opportunities and threats to develop a strategy. VW could have seriously considered the option of a joint operation with Chrysler or American Motors. this also created some problems for VW because it had no experience in dealing with American organized labor. In order to minimize the additional costs of a multi product line. This meant higher prices for the buyer. Another strategy for meeting competitive pressures was to build on VW's strengths by developing a car based on advanced design technology. Yet. the strategy was to reduce the competitive threat by developing a more flexible new product line that would accommodate the needs and desires of the car-buying public. of course. However. Although in difficulties VW did not have to resort to a survival strategy because the company still had much strength. Weaknesses and Opportunities (WO) The growing affluence of customers has resulted in 'trading up' to more luxurious cars. VW's tactic was to recruit managers from Detroit who were capable of establishing good union relations. . Specifically. the direction was toward the strength-opportunity position (SO) in the matrix shown as Figure 1. The external threats and opportunities pertain mostly to the situation VW faced in the United States. Weaknesses and Threats (WT) A company with great weaknesses often has to resort to a survival strategy. Japanese and American automakers obtained an increasingly larger share of the small-car market. Another alternative would have been to withdraw from the American market altogether. VW had essentially followed a one-model policy which presented a problem when the design of the Beetle became obsolete A new model line had to be introduced to reach a wider spectrum of buyers. To reduce the threats of competition and the effects of the unfavorable exchange rate. Consequently. Volkswagen (VW) was chosen because it demonstrates how a successful company experienced great difficulties in the early 1970s. Similarly. The result of this effort was the Rabbit.
consider the following combinations: Strengths/Opportunities: Consider all strengths one by one listed in the SWOT Analysis with each opportunity to determine how each internal strength can help you capitalize on each external opportunity. . and b) internal weaknesses with external opportunities and threats to develop a strategy.FIGURE 1 comments (0) | Understanding TOWS Matrix Posted by Neni Manize Why use the tool? TOWS Analysis is an effective way of combining a) internal strengths with external opportunities and threats. How to use tool: To carry out a TOWS Analysis.
A Google search for ³SWOT´ and ³planning´ turned up almost 93.y Strength/Threats: Consider all strengths one by one listed in the SWOT Analysis with each threat to determine how each internal strength can help you avoid every external threat. Although SWOT is promoted as a useful technique in numerous marketing texts. Some students have said that it is the most important thing they learned at the Wharton School. Threats) is a popular framework for developing a marketing strategy. y Weaknesses/Opportunities: Consider all weaknesses one by one listed in the SWOT Analysis with each opportunity to determine how each internal weakness can be eliminated by using each external opportunity.000 hits (August 2004). comments (0) | SWOT ANALYSIS | TOWS ANALYSIS | A Note on Marketing Planning Posted by Neni Manize SWOT (Strengths. y Weaknesses/Threats: Consider all weaknesses one by one listed in the SWOT Analysis with each threat to determine both can be avoided. most all of which laud the use of SWOT Analysis. it is not universally praised: One expert said that he preferred to think of SWOT as a ³Significant . Weaknesses. Opportunities.
Westbrook (1997). obtained from 28 validation studies (summarized in Armstrong 1990). 197-211. Because it mixes idea generation with evaluation.com Armstrong. & R. (2) generate alternative strategies.´ Strategic Management Journal. I have observed this when business school students use SWOT on cases. and the conditions were not always ideal for formal planning. (1990). Given the evidence. SWOT is not justified under any circumstances.´ Long . (3) evaluate alternative strategies. Two studies have examined SWOT. a better option for planners is to follow a formal written process to: (1) set objectives. References Armstrong. Hill. 114-119 also found in full text at http://jscottarmstrong. This support was obtained even though the formal planning in the studies typically used only some of the steps. J. I describe this 5-step procedure in Armstrong (1982). S. then what? Borrowing from corporate strategic planning literature. 5 found no difference. and (5) gain commitment among the stakeholders during each step of this process. 3. Evidence on the value of this planning process. ³SWOT Analysis: It¶s Time for a Product Recall. (4) monitor results.Waste of Time. it is likely to reduce the range of strategies that are considered. In addition.´ One advocate of SWOT asked: if not SWOT. The findings showed that SWOT harmed performance. showed that it led to better corporate performance: 20 studies found higher performance with formal planning. ³Review of Corporate Strategic Planning. they concluded that the process was so flawed that it was time for a ³product recall. Instead use the comprehensive 5-step planning procedure." Journal of Marketing.com. S. people who use SWOT might conclude that they have done an adequate job of planning and ignore such sensible things as defining the firm's objectives or calculating ROI for alternate strategies. the steps were often poorly implemented. When Hill and Westbrook (1997) examined the use of SWOT by 20 companies in the UK in 1993-94. Available in full text at http://jscottarmstrong. 54. J. What does the evidence say? Perhaps the most notable indication is that I have been unable to find any evidence to support the use of SWOT. (1999) asked 212 managers from Fortune 1000 companies about recent marketing strategies implemented in their firms. and 3 found formal planning to be detrimental. T. Menon et al.´ The problem with SWOT is more serious than just wasting time. (1982) ³The Value of Formal Planning for Strategic Decisions.
At those times we feel paralyzed and if we stay in the feeling of paralysis. ³Antecedents and Consequences of Marketing Strategy Making. No. Strengths and Weaknesses. The way to reboot our life with the help of the SWOT matrix is to look at each of the seven areas of life and check out where we may be stuck and how to move forward. 1. 46-52. Unfortunately there isn¶t a convenient button to push. 18-40 comments (0) | SWOT ANALYSIS: How to Reboot Your Life with the SWOT MATRIX Posted by Neni Manize We often see. we need to reboot our life. and Threats. The second two. 63.Range Planning. Stuckness can also .´ Journal of Marketing. When we¶re stuck. A great tool to get this overview is the SWOT matrix. There are times when our life gets locked up as well. SWOT is an acronym for Strength. A. (1999). there is a convenient option: you can reboot it. Opportunities. Weaknesses. 30. we can end up with depression or other health problems. The important point here is that stuckness can result from internal forces. The first thing we need to look at is why and where our life has got stuck. et al. Opportunities and Threats are what the outside world brings to us. when the computer locks up and nothing functions. are our personal attributes that we bring to our life. The first two. But it¶s possible all the same. Menon. that is from our own personal attributes and how we bring them to bear on the various areas of our life.
. Physical How is your physical health? Which basket are you in: fit or flab? What are your strength or weaknesses in regard to your body? What threats or opportunities do you perceive? Threats could be health problems. the good news is that we can develop intelligence at any age. in order to develop it. Mental This area includes our emotional. that is from forces that impinge on our life from outside. We need to use our brain.result from external factors. we can see how to reboot our life. After all. 1. Right now. What threats or opportunities to you see in regard to your mental wellbeing? How is your emotional health right now? What is strong about it and where are there weaknesses? What threats or opportunities to you see in regard to your emotional wellbeing? 2. as well as our intellectual well-being. what are your strengths and weaknesses in this particular area? Are you involved in learning something new? Learning is important for our intellectual well-being. Here are seven areas of life that we need to consider: y y y y y y y Mental Physical Spiritual Social Professional Recreational Creational If we take each one and investigate it in terms of the SWOT Matrix.
How are your connections? Are you in a relationship with a special person? Do you have family? Do you have strong friendships? What about colleagues ± do you have strong connections? And how is your social life? . What are your strength and weaknesses in respect to spirituality? What threats or opportunities do you perceive? 4. Opportunities are actions that we can take to optimize our physical condition. Social The social aspect of our life covers all the areas of connection. overweight.Maybe you¶re out of shape. 3. or you have other health threats to deal with. like meditation or prayer? Or are there moments in nature where you feel connected? I¶m talking about natural spirituality here. Spiritual Is there a spiritual component to your life? Do you have a spiritual practice.
Take a look at the SWOT Matrix and consider what your strengths and weaknesses are in respect of your social connections. Professional The professional area of life covers what we do for a living. How is your motivation? What are your strengths and weaknesses in this area? Are there threats and opportunities on the horizon? 6. Creational We need to be creative in one way or another if we are to feel in balance and happy. How easy is it for you to include fun in your life? What are your strengths and weaknesses? How to you see opportunities and threats in this area of your life? 7. What threats and opportunities can you discover? 5. Recreational What do you do for fun? We all need time out where problems recede and we do something that is pure enjoyment. How is your creativity? What are your strengths and your weaknesses? . and what we do in order to develop new areas of expertise.
your life will reboot completely. Bancassurance in its simplest form is the distribution of insurance products through a bank's distribution channels. etc. market share. your life will start to open in a new way.m If you focus on all areas of your life and focus on opportunities. It takes various forms in various countries depending upon the demmography and economic and legislative climate of that country. Now that you¶ve looked at the various areas of your life with the help of the SWOT Matrix.describes a package of financial services that can fulfill both banking and insurance needs at the same time. Even if you just choose one area of your life and look for opportunities. which is also known as Allfinanz . Any creative activity can kickstart it again. What did you notice about your life when you looked at the various areas with the help of the SWOT Matrix? comments (0) | Bancassurance: A SWOT ANALYSIS (SWOT STRATEGY) Posted by Neni Manize Before we go to SWOT ANALYSIS or SWOT STRATEGY of Bancassurance you should understand well about Bancassurance. In concrete terms Bancassurance.Many people find it difficult to be creative. . Demographic profile of the country decides the kind of products Bancassurance shall be dealing in with. Lets goto the point. whereas legislative climate will decide the periphery within which the Bancassurance has to operate. you¶ll have a better understanding about how to reboot your life.. Creativity is something we can misplace along the way. economic situation will determine the trend in terms of turnover.
is through fee income. Banks that effectively cross-sell financial products can leverage their distribution and processing capabilities for profitable operating expense ratios. Banks' proficiency in using technology has resulted in improvements in transaction processing and customer service. Why should banks enter insurance? There are several reasons why banks should seriously consider Bancassurance. direct mail. and mail) to make appointments. which they can leverage in selling them personal line insurance products. again providing for a lower per-lead cost when advertising through print. radio and/or television. Other bank strengths are their marketing and processing capabilities. banks could change the face of insurance distribution. Most large retail banks engender a great deal of trust in broad segments of consumers. high quality product and delivery at doorsteps. Banks also enjoy significant brand awareness within their geographic regions. Insurance companies see Bancassurance as a tool for increasing their market penetration and premium turnover. By successfully mining their customer databases. Banks have extensive experience in marketing to both existing customers (for retention and cross selling) and noncustomers (for acquisition and awareness). a bank¶s branch network allows the face to face contact that is so important in the sale of personal insurance. In addition. and one way to build fee income is through the sale of insurance products. assuming a constant asset base. One of the best ways to increase ROA. Banks that make the most of these advantages are able to penetrate their customer base and markets for above-average market share. and utilizing 'sales techniques¶ and products tailored to the middle market. By leveraging their strengths and finding ways to overcome their weaknesses. They also have access to multiple communications channels. Benefits to insurers Insurers have much to gain from marketing through banks. Personal-lines carriers have found . loyal customer base.The motives behind Bancassurance also vary. telemarketing. etc. ATMs. The customer sees Bancassurance as a bonanza in terms of reduced price. phone. Banks that build fee income can cover more of their operating expenses. leveraging their reputation and 'distribution systems¶ (branch. Another advantage banks have over traditional insurance distributors is the lower cost per sales lead made possible by their sizable. everybody is a winner here. such as statement inserts. For banks it is a means of product diversification and a source of additional fee income. the most important of which is increased return on assets (ROA). Actually. Sale of personal line insurance products through banks meets an important set of consumer needs. European banks have more than doubled the conversion rates of insurance leads into sales and have increased sales productivity to a ratio which is more than enough to make Bancassurance a highly profitable proposition.
and investment management expertise. how it will be done and by whom. Banks bring a variety of capabilities to the table. who comprise the bulk of bank customers. On the other hand. Most insurers that have tried to penetrate middle-income markets through alternative channels such as direct mail have not done well. Most obviously. Most have substantial product and underwriting experience. Once Bancassurance is embraced in India with full force. Banks also participate in the distribution of mortgage linked insurance products like fire. top professionals of both industries will have to be hired. neither banks nor insurance companies could effectively mount a Bancassurance start-up alone. and managing long-tail insurance products.it difficult to grow using traditional agency systems because price competition has driven down margins and increased the compensation demands of successful agents. It is therefore essential to have a SWOT analysis done in the context of Bancassurance experiment in India. However. As with any initiative. selling through faceto-face "push" channels underwriting. Bancassurance in India . developing insurance products. There is a vast untapped potential waiting to be mined particularly for life insurance products. success requires a clear understanding of what must be done. strong "push" . They have little or no background in managing low-cost distribution channels. most banks lack experience in several areas critical to successful Bancassurance strategies: in particular. they often lack local and regional name recognition and reputation. Strong players also excel at managing multiple distribution channels. a lot will be at stake. a call center will have to be created. Banks are selling Personal Accident and Baggage Insurance directly to their Credit Card members as a value addition to their products. Strengths In a country of 1 Billion people. Huge capital investment will be required to create infrastructure particularly in IT and telecommunications. Middleincome consumers. Bancassurance as a means of distribution of insurance products is already in force in some form or the other. Over the last decade. and they seldom possess access to or experience with the middle market. banks and insurance companies in India are yet to exchange their wedding rings. a strong insurer will excel. they tend to lack experience or ability in the areas where banks prevail. There are more than 900 Million lives waiting to be given a life cover (total number of individual . In addition. The place to begin is to segment the strengths that the bank and insurer bring to the business opportunity. insurers will recapture much of this under served market. cross-selling banking products. and using direct mail.A SWOT Analysis Even though. Banks can straightaway leverage their existing capabilities in terms of database and face to face contact to market insurance products to generate some income for themselves which hitherto was not thought of. Collaboration is the key to making this new channel work. Where banks usually fall short. Clearly.channel capabilities. a change in approach is necessary. sky is the limit for personal lines insurance products. Collaboration is the key In their natural and traditional roles and with their current skills. an R & D cell will need to be created to generate new ideas and products. they own proprietary databases that can be tapped for middle-market warm leads. get little attention from most life agents. motor or cattle insurance to their customers. life agents have sold fewer and larger policies to a more upscale client base. By capitalizing on bank relationships. they can leverage their name recognition and reputation at both local and regional levels.
also need to be given tax exemption to further the cause of insurance and to increase domestic revenue for the country. which is so essential for the development of any Bancassurance project. Millions of people travelling in and out of India can be tapped for Overseas Mediclaim and Travel Insurance policies. GIC & LIC.e.73 Million). Threats Success of a Bancassurance venture requires change in approach. There are about 200 Million households waiting to be approached for a householder's insurance policy. banks.life policies sold in 1998-99 was just 91. This can take the form of merger or acquisition or setting up a joint venture or creating a subsidiary by either party or just the working collaboration between banks and insurance companies. With a good IT infrastructure. therefore R & D efforts to create new products will be minimal in the beginning.e. RBI or IRA should have no hesitation in allowing the marriage of the two to take place. After discounting the population below poverty line the middle market segment is the second largest in the world after China. it can not be tailor made to the requirements of the customer. Internet connection is not available even to the managers of operating offices. Elementary IT requirement like networking (LAN) is not in place even in the headquarters of these institutions. when the need today is of Wide Area Network (WAN) and Vast Area Network (VAN). Weaknesses The IT culture is unfortunately missing completely in all of the future collaborators i. Where is the money left to think of insurance ? Fortunately. Opportunities Banks' database is enormous even though the goodwill may not be the same as in case of their European counterparts. This database has to be dissected variously and various homogeneous groups are to be churned out in order to position the Bancassurance products. this can really do wonders. Any relocation to a new company or subsidiary or change from one work to a different kind of work will be resented with vehemence. Therefore. The middle class population that we are eyeing at are today overburdened. The insurance companies worldwide are eyeing on this. GIC with 4200 operating offices and LIC with 2048 branch offices are almost already omnipresent. For a Bancassurance venture to succeed it is extremely essential to have in-built flexibility so as to make the product attractive to the customer. travel. Thailand and Singapore have already taken a leap in this direction and they are not doing badly. why not we preempt this move by doing it ourselves? Our other strength lies in a huge pool of skilled professionals whether it is banks or insurance companies who may be easily relocated for any Bancassurance venture. LIC schemes get IT exemptions but personal line products from GIC (mediclaim already has this benefit) like householder. LIC and GIC both have a good range of personal line products already lined up. Other developing economies like Malaysia. Our work force at every level are so well entrenched in their classical way of working that there is a definite threat of resistance to any change that Bancassurance may set in. first by inflationary pressures on their pockets and then by the tax net. Another drawback is the inflexibility of the products i. A late awakening seems to have dawned upon but it is a case of too late and too little. . thinking and work culture on the part of everybody involved. etc. Additionally. There is already an atmosphere created in the country for liberalisation and there appears to be a political consensus also on the subject.
As happened in France. In Spain. By simplifying Bancassurance products each back office bank employee can quintuple managing policies compared to traditional insurers. the roles may be expanded in opposite directions. Almost 100% banks in France are selling insurance products. European countries. Looking Around Hardly 20% of all US banks were selling insurance in 1998 against almost 70% to 90% in many W. Since banks and insurance companies have major portion of their income coming from the investments. Lessons We should take a leaf from the experienced players and develop Bancassurance only gradually. Banks' existing infrastructure enables them to operate at expense levels that are 30% to 50% lower than those of traditional insurers. to nearly 70% in France. US banks have now again (since late 1990s) turned their attention to insurance mainly life insurance. insurance and investment market by selling products to 20% of their existing customers. CNP.K. This happened in USA in 1980s after the enactment of Garn . harnessing the databank of the post office as well. Bancassurance's bank-branch based sales system sells 3 to 5 times as many insurance policies as a conventional as a conventional insurance sales and distribution force. Italy. This seems fair since each player should contribute towards something in which he excels. The merger of Winterthur. only about 6% P & C business comes from banks in Spain. Germany and France where more than 50% of all new life premium is generated by Bancassurance.S. In 1991 Nationale Nederlanden of Netherlands merged with Post Bank. the return from Bancassurance must at least match those returns. . Market penetration of Bancassurance in new life businesses in Europe ranges between 30% in U. the largest independent insurance company in France has developed its product distribution through post offices. Germany and Canada . banks in mass distribution and insurance companies in risk management. the largest Swiss insurance company with Credit Suisse and Citibank with Travellers Group have resulted in some of the largest financial conglomerates in the world. After stabilization. This itself amounted to substantial income for banks since they were not carrying the risks and product development was also left to insurance companies. It further states that Banks could capture 10% to 15% of the total U. 4% in France and Italy.Another possible threat may come from non-response from the target customers. 5% in Belgium. property and casualty products have not made much inroads.banks were allowed first only to distribute the insurance products for a fee.a new dimension to the Bancassurance i. A rush of joint ventures took place between banks and insurance companies and all these failed due to the non-response from the target customers. Also if the unholy alliances are allowed to take place there will be fierce competition in the market resulting in lower prices and the Bancassurance venture may never break-even. the banking subsidiary of the post office to create the ING Group . Despite the phenomenal success of Bancassurance in Europe. The investors in the capital may turn their face off in case the rate of return on capital falls short of the existing rate of return on capital.e.St Germaine Act. Belgium. A recent study by Boston Consulting Group and Bank Administration Institute in USA claims that if banks made a major commitment to insurance and a more narrowly targeted commitment to investors. within 5 years they could increase retail revenues by nearly 50%.
employs only 170 people in its insurance subsidiary. Another example is provided by Banco Bilbao Vizcaya of Spain who offers a term life policy with simple premium payments and a clear contract that is designed to be sold. Opportunities and Threats (SWOT) analysis allows business management to formulate strategies to increase profits for a company. failure to integrate marketing plans. poor sales channel linkages. Some of them . issued and signed at the point of sale within 15 minutes.Lloyds TSB in the UK. sales management tracking system for reporting on agents' time and results of bank referrals and relevant and flexible database systems. strong service delivery mechanism. even phoning the police for the customer at the time of the accident. Credit Agricole in France and Spain's Banco Bilbao Vizcaya . The most common obstacles to success are poor manpower management. insufficient product promotions.m . It is able to limit overhead by harnessing the bank's existing resources and capabilities. insurance companies and traditional fund management houses are converging towards a model of global retail financial institution offering a wide array of products. CIBC in Canada relieves the customer of having to report and resolve auto claims. simple yet complete product offerings. inadequate incentives. Now is the time to position your company for the new millennium of insurance product distribution. extensive and high -quality training.We need to develop innovative products and services. who have decades of experience managing insurance subsidiaries. The SWOT analysis also helps ma company and its employees to adapt to changing factors in the industry. savings and insurance products. no involvement by the branch manager. lack of a sales culture within the bank. complete integration of insurance with other bank products and services. Factors that appear to be critical to success include strategies consistent with the bank's vision. Insurance carriers and banks can become part of the vision through strategic partnerships. The bank assumes responsibility for the process. negative attitudes toward insurance and unwieldy marketing strategy. resistance to change. marginal database expertise. Discovery comes from looking at the same thing as everyone else but seeing something different. comments (0) | How To Write a SWOT ANALYSIS Posted by Neni Manize A Strengths. Finally The creation of Bancassurance operations has a material impact on the financial services industry at large. Bancassurance ventures that succeed tend to have certain things in common. Banks and insurance companies in India wishing to pursue high aspiration insurance strategies would do well to learn from European bancassurers. These bank have profitably sold insurance products to more than a fourth of their customers while generating more than 20% on sales.are delivering outstanding results. Banks. Banks' desire to increase fee income has them looking at insurance. Obstacles and success factors Even insurers and banks that seem ideally suited for a Bancassurance partnership can run into problems during implementation. Conversely. defined sales process for introducing insurance services. Credit Agricole. pensions. Weaknesses. quality administration. It leads to the creation of 'one-stop shop' where a customer can apply for mortgages. with $11 billion of premium in force. the second largest life insurer in France. synchronized planning across all business lines and subsidiaries. knowledge of target customers' needs.
with the increase of women penetrating the workforce. What Are Opportunities in the External Environment? An opportunity allows a company to increase profits by offering a gap in demand. or an opportunity to reduce costs. What Are Examples of Internal Strengths of a Company? A strength is essentially a factor from within the company that has resulted in the success of the organisation. especially when external threats.) This is because working capital (cash) is required to sustain the company's ability to pay employees / suppliers / fund marketing campaigns. This equates to a high turnover with dissatisfied employees leaving for other job opportunities. This increases competition amongst coffee bean suppliers and thus. occur. on the other hand. a management team with strong calibre denotes that the company is forward looking and is flexible to change. The Opportunities and Threats. A popular example is poor retention rate of employees.The SWOT can be classified into internal and external factors affecting a company. . For example. Another example may be a weak organisational culture that inhibits employees from expressing their views and concerns. The Strengths and Weaknesses of the SWOT analysis represent the internal factors that influence the viability of the company. more clothing designers nab the opportunity to produce fashionable career attire for working women. The fact that this takes place can be due to a number of reasons. a wider consumer base. are the external factors that may affect the company's performances. For example. Another example of a company strength is a hefty financial cash flow. reduces costs for the coffee house. Opportunities are almost always found in shifts in consumer preferences. One of them may be poor compensation packages (due to lack of funds). What Are Examples of Weaknesses within a Company? A weakness of an organisation can be detrimental to the survival of the company. For example. Companies that are liquid in cash are more likely to succeed in the long-run than companies that have invested in illiquid assets (such as heavy equipment / renovations in the office. Both factors allow the company to presevere amongst competitors. such as changes in regulation with respects to the industry. a coffee house may find an opportunity when new suppliers of coffee beans enter into the market. A company's strategic goal is to move forward to achieving opportunities that arise in the market.
which reduces consumers' consumption. the analyst first looks into the business unit to identify its strengths and weaknesses. especially if the company is unable to adapt to the threat and mitigate its harmful effects. In SWOT (Strengths. a threat for small grocery retailers would be the emergence of a hyper-market in the area . Threats are extinguishable but steps to mitigate them can be taken to protect the operations on the company. they should not ignore their weaknesses. Opportunities translate into opportunities to increase revenue as well as to reduce costs. this. Strengths What does the company do well? Is the company strong in its market? Does the company have a strong sense of purpose and the culture to support the purpose? y y y . the company should look at capitalising on its strengths. in turn. Weaknesses represent loopholes within their organisational structure / operations. By using their strengths. The analyst then reviews the environment in which the business unit operates and identifies opportunities presented by that environment and the threats posed by that environment. regardless of the sector. Weaknesses. Although companies always capitalise on their strengths. A common threat in any economy would be an economic recession. At the end of a SWOT analysis. The following lists show questions that an analyst would ask in conducting a SWOT analysis.Wal-mart . the company's plans to move forward should be centred around the opportunities quadrant. companies should also be able to strategise against the threats that are inherent in the market.for instance.What Are the Threats Inherent in the Environment? A threat can affect the company negatively. To achieve success in the opportunities quadrant. comments (0) | Labels: i SWOT Analysis Example ( Case Study) Posted by Neni Manize Lets to the point. A company should resolve to fill in their weaknesses in the long-run to ward off aggressive competition. This threat generally reduces revenue in companies. Opportunities and Threats) analysis. such as an effective marketing strategy. is transformed into higher profits. For example.
Weaknesses What does the company do poorly? What problems could be avoided? Does the company have serious financial liabilities? y y y Opportunities Are industry trends moving upward? Do new markets exist for the companyÃÄôs products/ services? Are there new technologies that the company can exploit? y y y Threats What are competitors doing well? What obstacles does the company face? Are there troubling changes in the companyÃÄôs business environment (technologies. laws. Dell Computer used a SWOT analysis to create a strong business strategy . Case Study In the mid-1990s. and regulations)? y y y The following case study demonstrates how SWOT can be used to create a strong business strategy.
DellÃÄôs strategy capitalized on its strengths and avoiding relying on a dealer network. Dell identified an opportunity by noting that its customers were becoming more knowledgeable about computers and could specify exactly what they wanted without having Dell salespersons answer questions or develop configurations for them. over the internet. It also saw the internet as potential marketing tool. both of which had much stronger brand names and reputations for quality at that time. comments (0) | SWOT ANALYSIS EXAMPLE Posted by Neni Manize . and eventually. Dell faced threats from competitors such as Compaq and IBM.that has helped it become a very strong competitor in its industry value chain. Dell decided to offer customized computers built to order and sold over the phone. The brand and quality threats posed by Compaq and IBM were lessoned by dellÃÄôs ability to deliver higher perceived quality because each computer was custom made for each buyer. It acknowledged the weakness of having no relationships with local computer dealers. The results of dellÃÄôs SWOT analysis are: Strengths y y Sell directly to consumers Keep costs below competitors Weaknesses No strong relationships with computer retailers y Opportunities Consumer desire for one-stop shopping Consumers know what they want to buy Internet could be a powerful marketing tool y y y Threats Competitors have stronger brand names Competitors have strong relationships with computer retailers y y The strategy that Dell followed after doing the analysis took all for of the SWOT elements into consideration. Dell identified its strengths in selling directly to customers and in designing its computers and other products to reduce manufacturing costs.
which is a great example of how an IT company can use a SWOT analysis to carve out a strong business strategy. read more at: http://www. Although some companies might think the move was excessive considering 80% of customers have no problems. Dell also saw the Internet as a powerful marketing tool. according to Glazer. Dell put together a business strategy that included mass customization and just-in-time manufacturing (letting customers design their own computers and custom-building systems). I am very pleased to hear the progress is due to research on the SWOT analysis I have done is not in vain and could be beneficial for the company. Identifying opportunities was an easier task. DONAY Bandung. DONAY. they admit that there is influence from the research which I undertook to productivity and sales of shoes. I made a SWOT analysis for the company.. Dell recognized that its strength was selling directly to consumers and keeping its costs lower than those of other hardware vendors. Delta believed customer service was an important area for increasing market share and that competitors could pose a threat if Delta didn't address the problem.If you find swot analysis example try to look at this case. Another example is Dell Computer Corp. Delta Air Lines Inc. and surprisingly. On the threats side. Dell looked at the marketplace and saw that customers increasingly valued convenience and one-stop shopping and that they knew what they wanted to purchase.com/doc/2673526/SWOT-Analysis-Examples comments (0) | SWOT Analysis Example for shoes company (PT. The Company is taking steps to learn it and implement the results of the SWOT analysis that I have made.. chose to invest in a multibillion-dollar customer service system that addresses the flight delay problems experienced by 20% of its passengers. Indonesia. Bandung. This result is presented in table form: . Dell realized that competitors like IBM and Compaq Computer Corp. Indonesia (This can be an example of SWOT analysis). which put Dell in a weaker position with dealers. Dell also stuck with its direct sales plan and offered sales on the Internet. I will try to share about the results of the SWOT analysis that I have made for the PT. the company acknowledged that it lacked solid dealer relationships. As for weaknesses. DONAY Bandung Indonesia) Posted by Neni Manize Five years ago I successfully completed a study on the SWOT analysis in a shoe company named PT. had stronger brand names.scribd. after five years.
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