SWOT ANALYSIS

 This is a management tool used to identify a business’

strengths, weaknesses, opportunities and threats.
 Used to assess the current situation of a business organisation.
 This information can be useful in strategy formulation and
selection.
 Strengths-internal factors that reveal what the organisation does
well compared to its rivals, e.g., high market share.

SWOT  Weaknesses- internal factors that reveal what the organisation

does not do so well compared to its rivals, e.g.. Poor customer
ANALYSIS service .
 Opportunities- external factors that may enable the organisation
to develop and prosper, e.g., an economic boom.
 Threats- external factors that may hinder the organisation’s
ability to achieve its aims, e.g., interest rates.
 See table 1.3.5 (Stimpson and smith. 2nd edition), Hoang 4th
edition page 42.
 Weaknesses
Strengths
High labour turnover
Dedicated and productive
workforce Demotivated staff
High market share Low profit margins
Brand loyalty/reputation High wastage rate
Poor customer service
Customer loyalty

Threats
Opportunities
Higher raw material costs
Internet technologies
Economic recession
New overseas markets
Protests from pressure groups
The collapse of a major competitor
Demographic changes
Demographic changes
 strengths weaknesses

WIS swot
analysis
opportunities threats
  Prepare a SWOT analysis for any organisation of your choice
falling in the following sectors:
 1. primary sector
 2. Secondary sector
 3. Tertiary sector

SWOT ANALYSIS  4. Quaternary sector

GROUP TASK

 Think carefully about all the different factors which could

affect each of the four sections.
 What strategies do you think the business should adopt to
maintain or improve is market position?
 ADVANTAGES OF SWOT ANALYSIS

 A visual tool to assist managers in the planning process

Swot analysis
DISADVANTAGES OF SWOT ANALYSIS

 It is only a snapshot of the current situation for the

organisation.
  SWOT is a management tool that can be used to assess where a
SWOT ANALYSIS business is at the present time.
&  Information from SWOT analysis can be used for strategy
Strategic objectives formulation and selection.
 Helps manager to assess the most likely successful future strategies
and the constraints on them.
 These strategies can be developed by pairing the SWOT factors
 Strengths Weaknesses

Opportunities S-O W-O

Swot analysis and
strategic growth strategy Re-orientation
strategies
objectives
Pairing the key factors to Threats S-T W-T
determine the relevant strategy
Defusing strategies Defensive strategies

Task: Explain these business strategies. For example: what is a growth strategy? What are
the four basic growth strategies? How do companies develop growth strategies?
  Existing market, existing products
 Firm focuses on what it already knows and does well
 Its also low risky

Market  Aim is to increase sales revenue, gain market share

 Competitive pricing strategy
penetration  Customer loyalty schemes
 More distribution channels
 Effective promotional campaigns