THE SWOT ANALYSIS

ARMIN GLENN ARANETA, CPA

Learning Objective

TO BE ABLE TO APPLY
SWOT ANALYSIS AS A
TOOL IN EVALUATING
BUSINESS
OPPORTUNITIES.
SWOT ANALYSIS
Stands for STRENGTHS,
WEAKNESSESS, OPPORTUNITIES
and THREATS, is an analytical
framework that can help a
company met its challenges
and identify new markets.
STRENGTHS

This pertains to the

characteristics of the business or
project that give it an
advantage over others.
OPPORTUNITIES

These are the elements that the

business or project could exploit
to its advantage.
WEAKNESSESS

A characteristics that place the

business or project at a
disadvantage relative to others.
THREATS

These are the elements in the

environment that could cause trouble
for the business project.
This framework can help you
identify the business risks and
rewards.

It is also a means of identifying

the internal and external forces
that may affect the business.
Such internal factors are usually
as follows:

1. Financial resources.
 Such as money and other sources
of funds for investments.
2. Physical resources.
 Such as facilities, machineries and
the like.

3. Human resources consisting of

employees.
4.Access to natural resources,
trademarks, patents and
copyrights.
5.Current processes, such as
employee programs,
department hierarchies and
software systems, marketing
programs, etc.
On the other hand, external factors
includes:

1. Economic trends.
2. Market trends.
3. National and local laws as well as
political, environmental and
economic regulations.
4. Demographic characteristics of the
target market such as gender, age
and the culture of the customers.
5.Relationships with suppliers and
co-owners.
6.Competitive threats.
SWOT analysis is a tool that can
help a proponent by enabling him to
identify and assess the internal and
external forces that can affect the
business.

When used properly and regularly,

this can serve as guide f0r the
company to attain success.
Swot Analysis Template

S W

O T
Swot Analysis Template
1. Difficulty of organization
1. Government Incentives
2. Costly set-up
2. Low Capital Requirements
3. Possible pollution problems
3. Market Acceptance
4. Lack of training of workers
4. Experienced Leaders

SWOT
1. Entry of competitors
1. Project may replace imported goods
available in the market. 2. Time consuming production
2. Will improve employee welfare.
process.
3. Improved company reputation. 3. Opposition form the residents in
the community.
THANKS!

END