SWOT ANALYSIS

Prof. Prem Vrat

Director
I I T Roorkee
SWOT analysis is a very powerful and
penetrating tool for corporate soul searching.

It can be at any level :

1. Corporate
2. Unit
3. Deptt./ Sector
4. Individual level
 SWOT Analysis

S = Strength Historical
&
W = Weaknesses internal

O = Opportunities Futuristic
&
T = Threats External
 SWOT analysis for corporate appraisal

Analysis of Mission
Org. Purpose
Analysis of Org. Analysis of Employee
Strength and Objectives,
Opportunities &
Weakness strategy & Threats
Strategic plans

Analysis of Corporate Culture

Management Values
 STRENGTHS
Corporate
Analysis
WEAKNESSES

OPPORTUNITIES
Environmental
Analysis
THREATS
 WHY ‘SWOT’ ANALYSIS
• A look before you leap approach
• Allows a company to identify its
competencies & weakness
• Evaluates competitive advantages.
• Creates strategic data bases which help
management in taking right choice
• Leads logically into the business plan
• Gives middle level management a feel of
strategic thinking
 Criteria for Demanding
Strengths & Weakness

 Historical Criteria
 Normative Criteria
 Competition Parity Criteria
 Critical Factors for Success
 IDENTIFYING OPPORTUNITIES

Present or future positive environmental

Variables and Industry wide Opportunities

Interact Company Specific

Opportunities

Company Strengths
 IDENTIFYING THREATS

Present, future -ve environmental Variables

and Industry wide threats

Interact Company Specific

Threats

Company Weaknesses
 OPPORTUNITY MATRIX
High I. Very Attractive II. Moderately
Attractive
Seriousness
of Impact

Low III. Moderately IV. Least

Attractive Attractive

High Probability of Low

Occurence
 THREAT MATRIX
High I. Major Threat II. Moderate
Threat
Seriousness
of Impact

Low III. Moderate IV. Minor

Threat Threat

High Probability of Low

Occurence
 S W
SO WO
O Maxi-Maxi Mini-Maxi

ST WT
T Maxi-Mini Mini-Mini

TOWS Matrix for Strategy Formulation

WT Strategy
Minimize both weaknesses & threats (e.g. form joint
ventures, retrench or liquidate)

WO Strategy
Minimize weaknesses I maximize Opportunities.

ST Strategy
Capitalize Organization's strengths to deal with
environmental threats ( Use technological/financial/marketing
strength to cope up competition)

SO Strategy
Use Strength to take advantage of Opportunities
THANKS!!!