SWOT Analysis A tool for situational analysis

Environmental factors internal to the organization are classified as Strengths (S) and Weakness (W). External factors are referred to Opportunities (O) and Threats (T)

An analysis of the strategic environment is referred to as SWOT/SCOT A scan of the internal and the external environment is an important part of strategic planning process. An analysis of the strategic environment is referred to as SWOT/SCOT Analysis

COMPETITIVE ENVIRONMENT RESOURCES COMPETITIVE ENVIRONMENT CAPABILITIES

ENVIRONMENTAL SCAN EXTERNAL ANALYSIS INTERNAL ANALYSIS WEAKNESSES STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

STRENGTHS They are resources and capabilities that can be used as a basis to develop a competitive advantage. Eg : An access to proprietary know-how Patents

WEAKNESS Absence of certain strengths or the flip side of the strength Eg : A poor reputation High Cost structure

OPPORTUNITIES The external environment may reveal certain opportunities for growth and development. Eg : Loosening of regulations. Removal of international trade barriers

THREATS Changes in external environment may present certain threats Eg. Shift in consumer taste Emergence of substitute product New regulations Increased trade barries

SWOT - Analysis STRENGTHS WEAKNESS OPPORTUNITIES THREATS

SWOT to TOWS Matrix Strengths-Maximize Weakness-Minimize Opportunities-Maximize Threats-Minimize Weakness-Minimize Opportunities-Maximize Threats-Minimize Opportunities-Maximize Threats-Minimize

S-W Strategies Identify ways that firm can use its strengths to reduce the impact of its weaknesses.

S-T Strategies Identify ways that firm can use its strengths to reduce its vulnerability to external threats

S-O Strategies : To pursue opportunities that are a good fit for the company’s strength.

W-O Strategies Overcome weakness to pursue opportunities

W-T Strategies Establish a defense plan to prevent the firm’s weaknesses from making it highly susceptible to external strengths

O-T Strategies : To pursue opportunities that can overcome threats to the company’s.

Decision Micro level, Macro level. Structural, Process Immediate, Short term, Long term Individual, Group, Organizational

Impact Macro Micro Organization

Impact Structure Process Organization

Impact Impact Immediate Long Strategic Short

Impact

Impact Impact On Other Stakeholders Competitors Environment Internal

Impact Internal Employees Workers Managers Departments/ Process