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SWOT

ANALYSIS
GROUP 03
SWOT analysis is a strategic planning tool
 used to identify the Strengths, Weaknesses,
Opportunities, and Threats affecting a
business. An interesting variation on SWOT
analysis is the financial SWOT analysis,
which provides insight into those same four
areas, but with a financial focus.

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WHAT IS FINANCIAL SWOT ANALYSIS?

Financial SWOT analysis is a 


business analysis tool that helps to identify
the financial Strengths, Weaknesses,
Opportunities, and Threats of an
organization. It’s 
an adaptation of SWOT analysis — which
analyzes those same traits without a
financial focus — commonly used in
financial planning.
LET’S LOOK AT THE FOUR AREAS OF SWOT ANALYSIS IN DEPTH:

•Strengths INTERNA
•Weaknesses L
•Opportunities FACTORS
EXTERNA
•Threats L
FACTORS

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INTERNAL FACTORS:

STRENGTHS
These are things that play to a business’
benefit. In the case of financial SWOT
analysis, this may include large cash
reserves or positive monthly cash flow
Building on strengths
A SWOT analysis will help you identify areas of your business that are
performing well. These areas are your critical success factors and they give
your business its competitive advantage.

Identifying these strengths can help you make sure you maintain them so
you don't lose your competitive advantage. Growing your business involves
finding ways of using and building on these strengths…..
INTERNAL FACTORS:

Weaknesses
These are things that play to a
business’ detriment. For financial
SWOT analysis, examples include
lots of debt or negative monthly
cash flow.
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EXTERNAL FACTORS:

OPPORTUNITIES
These are things which could
benefit the business, but do not
currently. Financial examples
include possible cash investments or
new revenue streams.
EXTERNAL FACTORS :

THREATS

These are things which could


benefit the business, but do not
currently. Financial examples
include possible cash investments
or new revenue streams.
SWOT ANALYSIS
​-is designed to give an overall picture of
an organization’s current and potential
financial standings. It helps to understand
how an organization is faring financially
at present (thanks to the Strengths and
Weaknesses identified), and offers insight
into potential events that might
dramatically change its finances (the
Opportunities and Threats).

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SWOT ANALYSIS
This can help an organization to plan
both financially in accordance to
international tax laws, by knowing what
revenues and expenses to expect, and
strategically, in knowing how to pivot to
optimize its financial standings.

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When to Use Financial SWOT Analysis?
Like other business analysis tools,
financial SWOT analysis can be used at
any stage before or during a business
venture.

For example, companies might use


financial SWOT analysis 
to evaluate a new business opportunity,
with the goal of identifying what the
associated benefits and risks are from a
financial perspective.

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How to Use Financial SWOT Analysis?

Conducting a financial SWOT analysis is just like 


conducting any other SWOT analysis. This means the bulk of
the work lies in identifying relevant Strengths, Weaknesses,
Opportunities, and Threats.
thank you <3
Identifying Strengths,
Weaknesses, Opportunities,
and Threats
Identifying Strengths, Weaknesses, Opportunities, and
Threats

• For a financial SWOT analysis, Strengths and Weaknesses


can often be found by looking at balance sheets, which
show revenues and expenses.

• Other financial Strengths and Weaknesses to look at


include assets, liabilities, and the availability of
borrowed money.
Identifying Strengths, Weaknesses, Opportunities, and
Threats

• Next, financial SWOT analysis involves identifying the


Opportunities and Threats that could affect the business.

• In financial SWOT analyses, the major Opportunities


are new revenue streams. The Ansoff Matrix can be a
useful tool to identify new revenue streams
Identifying Strengths, Weaknesses, Opportunities, and
Threats

• Major Threats might be the loss of existing revenue


streams. To identify these, it can help to use business
analysis tools that identify external variables, such as
PESTLE analysis.
Piecing Together the Puzzle

• Once you’ve identified the factors that could affect the


business, it’s time to compile, and subsequently interpret the
SWOT analysis.

• In compiling a SWOT analysis, review the Strengths,


Weaknesses, Opportunities, and Threats identified
and ensure they are sufficiently significant.
Piecing Together the Puzzle

• After laying out and reviewing factors from these four areas,
decide whether a report is necessary. If the SWOT analysis is
to be shared with others, it may be worth compiling all the
findings into a single document. If not, whatever notes made
will be sufficient.

• Finally, begin interpreting the SWOT analysis in order to develop


actionable strategies.
• While SWOT analysis is useful in its own right — as a
framework to identify current standings and potential
future scenarios — its true value is in enabling you to find
these actionable insights.

• As you can see, financial SWOT analysis is a powerful tool


for evaluating the financial standings of a business. By
combining the SWOT framework of Strengths, Weaknesses,
Opportunities, and Threats with a financial focus, this tool
uncovers both current financial standings and potential
changes.
“Knowing certainly is half the battle,
but acting on that knowledge is the
crucial second half! ”
Thank you !!!

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