Opening Activity Using your guided notes paper – conduct a “Personal SWOTT Analysis” Have the students conduct a Personal SWOTT Analysis. They really don’t have to know what a SWOTT analysis is, they just have to answer the questions about themselves. Once they have mastered this concept of using themselves as the subject they can transfer that knowledge to a Business SWOTT Analysis.

SWOTT Analysis Note: The second “T” is fairly new and is not in many of the high school textbooks but is being found in the college marketing textbooks. The last “T” is for trends.

CTE Standards Understand how products and services are conceived, developed, maintained, and improved in response to market opportunities. (4.3) Understand how market research is used to develop strategies for marketing products or services in a small business.(4.4)

Objectives -Explain the reasons for conducting a SWOTT Analysis. - Use a SWOTT Analysis to respond to opportunities in the marketplace.

Why is a SWOTT Analysis Needed? Stands for Strengths, Weaknesses, Opportunities, Treats and Trends. SWOTT Analysis looks at each of these factors in your business. A SWOTT analysis is an important part of the strategic-planning process because it helps you focus on the key issues that you must pay attention to when formulating your next marketing move. Smart marketers know that the best marketing strategy is one that emphasizes their companies strengths, minimizes their companies weaknesses, capitalizes on good opportunities, and avoids external threats. In the opening activity you conducted a Personal SWOTT Analysis, you could use that information to help make decisions or make future goals.

SWOTT Analysis Strengths Weaknesses Opportunities Threats Trends

Strengths Characteristics of the business or project team that give it an advantage over others. Examples: You have a new, innovative product or service. Great location! Knowledgeable sales staff. Developed clients. Question 1 : Ask students what they think a strength is when it comes to marketing planning. Question 2 : What is a strength of Starbucks Answer: Very profitable, revenue of more than 5000 million, global brand, reputation for find products (9000 cafes in 40 countries), was name Fortune 100 top Companies to work for. Ask yourself: What are our advantages? What do we do well (what is our expertise)? What are our assets? What resources do we have access to? Where are we making money?

Weaknesses Limitation or shortcoming your business has that can keep you from achieving your objectives. They are internal factors, which means they are under your control Example: Damaged reputation. Poor quality goods or services. Lack marketing expertise Ask Yourself: What can improve? What resources do we lack? Where are we losing money? What are our competitors doing better than we are?

Opportunities Favorable situation in the environment surrounding your business. Examples: A developing market such as the internet A new international market A market vacated by an ineffective competitor. Ask Yourself: What are the newest technological breakthroughs? What new needs of customers can we meet? What economic trends are beneficial to us? What niches have our competitors missed?

Threats External elements in the environment that could cause trouble for the business or project. Examples: An new competitor Price wars with competitors. A competitor has a new, innovative product or service. Ask Yourself: What obstacles do we face? What is our competition doing? What economic trends are harmful to us? What technological trends are harmful to us? Where are we vulnerable? Do we have money problems?

Trends New ideas or opportunities that are happening in the industry. Example: New direction for your type of business.(Netflix using the internet to rent videos instead of sending them through the mail) Increase in internet sales for your type of product or service. Ask Yourself: Are there any trends outside of our industry that will have an impact on our industry in the future? Are our customers wants and needs changing? What are the trends in our industry?

Now What? Use the information in the SWOTT Analysis to create a action plan for yourself. Go back to the opening activity – Using the information on your personal SWOT Analysis create a personal action plan.

SWOTT Matrix for Joe’s Diner Strengths Voted “best pancakes in town”. Convenient location. Friendly staff Good reputation Lines out the door. Opportunities Affordable new cappuccino machines. Failure of diner down the street New cinnamon pancakes Trends Threats Starbucks and other coffee chains. New diner opening across town Fast-food restaurants New tax law Sometimes strengths can also be considered weaknesses, and opportunities can also be considered threats! For example: if your restaurant has await times of up to two hours on the weekends, some people might consider that to be a strength – it shows how much the public loves your product. One the other hand, some people might consider the long wait times to be weaknesses – many customers are turned off by not being able to get seated within a reasonable amount of time. Working in teams of two or three decide on the three most important action plan items for Joe’s Diner. Record answers on your guided notes page. Weaknesses Limited beverage menu No plan for expansion Inexperienced chef Poor advertising strategy Lines out the door. Trends Coffee drinks Health foods

Summary SWOTT is used to help you make strategic plans to keep your business profitable. SWOTT is subjective! People have different perspectives. SWOTT lives in the present – it is a snapshot of where you are right now – not in the past or future. SWOTT must be specific.

Wrap Up! See- Guided Notes Page

Putting your SWOTT Analysis skills to work! Page 3

Group Activity Each group should pick one of these companies to conduct a quick SWOTT Analysis from a customers perspective.