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SWOT

ANALYSIS

SWOT analysis is a framework used


to evaluate a company's competitive
position by identifying its strengths,
weaknesses, opportunities and
threats. Specifically, SWOT analysis
is a foundational assessment model
that measures what an organization
can and cannot do, and its potential
opportunities and threats.
INTRODUCTION TO NESTLE
 Food and beverage company
 Headquartered in Switzerland
 Nestlé’s products include baby food, bottled water, breakfast
cereals, coffee and tea, confectionery, dairy products, ice cream,
frozen food, pet foods, and snacks.
 Nestlé is the world’s largest food and beverage company.
Nestle have more than 2000 brands ranging from global icons to
local favourites, & are present in 189 countries around the world.
MISSION STATEMENT
"We strive to bring consumers foods that are safe,
of high quality and provide optimal nutrient to
meet physiological need. Nestle helps provide
selections for all individual taste and lifestyle
preferences.”

• Motto: "Good Food, Good Life."


TAG LINE
•Argentina: “Change The Day Start Within”

•Germany: “Give Yourself A Break”

•United State: “The Smart Choice”

•India: “Good Food Good Life”


PORTFOLIO
Meaning
• SWOT stands for Strengths, Weaknesses, Opportunities, and
Threats.

• Strengths and weaknesses are


internal to a company—things that
can be changed and controlled,
from the people working in a
department to the patent and
intellectual property rights.

• Opportunities and threats are external—things that are going


on outside a company, in the larger market. The opportunities
available can be used to protect the company against threats,
but the external environment can’t be changed.
W for Weaknesses
• Every organization or venture has its weaknesses —
things that they don’t do so well (or even do
poorly), or things that aren’t so good about
them/it.
• They cause harm (or prevent benefit), and are
intrinsically related to how the organization is
managed or the venture is realized.
• An organization must accept and work on its
weaknesses with an Open Mind
• Example – Unfriendly Staff, Product Complexity
EXTERNAL FACTORS

 Opportunities are a  Threats are anything that


combination of different could cause damage to the
circumstances at a given time organization, venture, or
that offer a positive outcome, product. This could include
if taken advantage of. anything from other
companies (who might
intrude on your market), to
 Unlike with Strengths, supply shortages (which
however hard anyone tries might prevent you from
they cannot ‘create’ manufacturing a product).
opportunities — they can only
choose how to position
themselves to gain maximum  Threats do not benefit the
benefit from them, or whether company, but there is nothing
or not to grasp for them. that can be done to stop them
from coming about.
 Example – Emerging Markets
Importance of SWOT Analysis
1. Simple Value
 Simplicity and a broad perspective are two core traits that combine to make a SWOT
analysis so important in strategic planning. It can be a simple tool to use because the
process involves listing all items in each category in a spreadsheet or table. Depending
on who is performing the analysis, it is common to involve business or division
leaders, regular employees and even clients. The broad perspective stems from the fact
that you identify everything that makes your company successful, but also
your areas of vulnerability.

2. Forward Planning
 What really makes SWOT powerful is its usefulness in setting a course to take
advantage of prime business opportunities, according to Mind Tools. Without a
strategic plan, companies can just aimlessly drift around without a strategic direction,
or operate without development. In highly competitive industries, failing to seize
openings is almost as catastrophic as making a major mistake. If a new customer
segment emerges due to shifts in preferences, for instance, it is often a race to see
which company best serves the need first. SWOT allows you to map out this
possible opportunity well in advance, and begin planning to deliver a quality
solution and marketing plan before the opening hits.
3. Self-Preservation and Protection

 Though it isn't always pleasant to scrutinize your weaknesses or


deficiencies, top companies know where they stand in all critical areas
relative to the

 Threats are another key SWOT element in guarding against risks.


Companies that don't use a planning tool like SWOT may be caught off
guard when threats emerge. In contrast, effective use of SWOT helps a
business adjust or prepare for pending threats. Some businesses wait
until a recession slows revenue, for instance, while others recognize
the potential for recession in advance, alter promote strategies and
trim budgets. Other potential threats identified through SWOT
include shifting customer preferences, technological changes and
environmental concerns.
Advantages of SWOT Analysis
 Strategy building

SWOT analysis can be used effectively to build organizational or personal


strategy. Steps necessary to execute strategy-oriented analysis involve
identification of internal and external factors (using the popular 2x2 matrix),
selection and evaluation of the most important factors, and identification of
relations existing between internal and external features.

 Matching and converting


One way of using SWOT is matching and converting. Matching is used to
find competitive advantage by matching the strengths to opportunities.
Another tactic is to convert weaknesses or threats into strengths or
opportunities. An example of a conversion strategy is to find new markets. If
the threats or weaknesses cannot be converted, a company should try to
minimize or avoid them.
 Corporate planning
As part of the development of strategies and plans to enable the organization
to achieve its objectives, that organization will use a systematic/rigorous
process known as corporate planning. SWOT alongside PEST/PESTLE can be
used as a basis for the analysis of business and environmental factors.
1. Setting Objectives- Deciding What the Organization is
supposed to be.

2. Strategic Issues defined — key factors in the development of


a corporate plan that the organization must address

3. Develop new/revised strategies — revised analysis of


strategic issues may mean the objectives need to change.

4. Establish critical success factors — the achievement of


objectives and strategy implementation

5. Preparation of operational, resource, projects plans for


strategy implementation

6. Monitoring all results — mapping against plans, taking


corrective action, which may mean amending
objectives/strategies.
METHODS OF DOING A SWOT
ANALYSIS
Method 1
A SWOT analysis focuses on Strengths, Weaknesses, Opportunities,
and Threats.
Ask participants to answer these simple questions: what are the
strengths and weaknesses of your group, community, or effort, and
what are the opportunities and threats facing it?
Method 2
If a structure helps in brainstorming, you can group positives and
negatives to think broadly about your organization and its
external environment.
Method 3
This is a method of structuring your SWOT analysis, which may
be appropriate for a larger initiative that requires detailed
planning. This "TOWS Matrix" is adapted from Fred David's
Strategic Management text.
Steps for conducting a SWOT analysis:

1. Designate a leader or group facilitator.


2. Designate a recorder to back up the leader if your
group is large.
3. Introduce the SWOT method and its purpose in your
organization.
4. Let all participants introduce themselves.
5. Have each group designate a recorder; direct them to
create a SWOT analysis.
6. Reconvene the group at the agreed-upon time to share
results.
7. Discuss and record the results.
8. Prepare a written summary of the SWOT analysis to
give to participants.