SWOT

Analysis
 The SWOT analysis was created in
the 1960’s by Business gurus,
Edmund P. Learned, C. Ronald
Christensen, Kenneth Andrews and
William D. Book in their book,
Business Policy, Text and Cases
(Irwin 1969)
 What is SWOT Analysis?
 SWOT, which stands for Strengths, Weaknesses,
Opportunities, and Threats, is an analytical framework that
can help a company or individual meet its challenges and
identify new markets.

 The framework can help identify the business’ risks and

rewards.
 STRENGTHS
Internal attributes and resources
that support a successful
outcome.
 WEAKNESSES
Internal attributes and resources
that work against a successful
outcome.
 OPPORTUNITIES
External factors that the entity can
capitalize on or use to its
advantage
 THREATS
External factors that could
jeopardize the entity's success
 Example of SWOT Analysis
The company is a fast food chain with
spaghetti and fried chicken as best seller in
their menu items

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

 Location  Small space  families with  Competition

young
 Uniqueness  Lack of dish children
SWOT Analysis is also
a means of identifying
the internal and
external factors that
may affect the business
 INTERNAL FACTORS
 Financial resources such as money and sources of funds for investments

 Physical resources, such as they company's location, facilities, machinery,

and equipment

 human resources consisting of employees

 access to natural resources, trademarks, patents, and copyrights

 Current processes, such as employee programs, department hierarchies

and software systems, sales and distribution capabilities, marketing
programs, etc.
 EXTERNAL FACTORS
 economic trends including local, national, international financial trends,
developments in the country’s stock market, reforms in the banking system, growth
of the Gross Domestic Product

 market trends, such as a new products or technology or evolving buyer’s profiles,

including changes in tastes and lifestyle behavior

 national and local laws, and statues as well as political, environmental, and
economic regulations

 Demographic characteristics of the target market such as the age, the gender, the
culture of the costumers

 Relationships with suppliers and co-owners

 Competitive threats
 SWOT analysis is a guide to prepare for a
new venture, design business strategies
and identify area of change and reform. We
used it properly, the business owner can
anticipate problems, including possible
solutions and take advantage of identified
opportunities.
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