1. SWOT Analysis The SWOT (strengths, weaknesses, opportunities and threats) analysis identifies and describes the organization’s strengths and weaknesses and the opportunities and threats it faces in order to develop strategies for capitalizing on the strengths and opportunities and minimizing the weaknesses and threats

2. Strengths Strengths include any competitive advantage or other distinctive competencies (things that the firm does better than any others) that a company can employ in the marketplace Strengths exist relative to competitors, such as cheaper access to capital, good relations with vendors and customers, a unique product, or an advantageous location A companies distinctive competency can play a key role in positioning it and its products in the minds of customers and so forms a unique strength

3. Weaknesses Weaknesses are constraints that limit certain options in the business strategy (a poor image of the firm’s products in the minds of consumers) Some weaknesses are less important than others The planner must therefore determine which weaknesses have the greatest effect on the firm’s competitive position In order to identify strengths and weaknesses, it is important to have data about current market/product positions (past performance and forecasted performance)

4. Opportunity An opportunity is a favorable set of conditions, which limits barriers to provide rewards, that the firm can exploit with a high probability of success Unmet product needs, a new, lower cost source of a vital raw material; new technology; or new legislation that opens up a product market or restricts competitor’s access to a market

5. Threats Threats relate to barriers or conditions that may prevent the organization from achieving its objectives, ultimately leading to a loss of competitive advantage Examples include the direct actions of competitors (such as the introduction of a new product), adverse governmental legislation loss of access to cheap capital or other resources, or an economic downturn

6. Assignment Work with your team Pick a company Visit or do research on the company Do a SWOT analysis on the company Prepare a 10 minute presentation of your SWOT Present in class #6 Each Team member must present one section Turn in a hard copy of your presentation with your team members.

7. SWOT Format Strength 1: – How does this strength affect the operations of the company? – How does this strength assist the company in meeting its objectives? – (Repeat this process for all of the strengths that can be identified.) Weakness 1: – Ho does this weakness affect the operations of the company? – How does this weakness reduce the company’s ability to meet its objectives? – (Repeat this process for all of the weaknesses that can be identified.)

8. SWOT Format Opportunity 1: – How is this opportunity related to current or future company operations? – What actions must the company take in order to take advantage of this opportunity? – (Repeat this process for all of the opportunities that can be identified.) Threat 1: – How is this threat related to current or future company operations? – What actions must the company take to reduce or eliminate this threat? – (Repeat this process for all of the threats that can be identified.)