1. IT Entrepreneurial Work Term Presentation
SWOT Analysis
IT Entrepreneurial Work Term
Presentation

2. What is it used for? A SWOT analysis is a tool used to:
Evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture (either existing or proposed)
A SWOT analysis can be carried out for a product, place, industry or person
Involves “sizing up” the environment by identifying the internal and external factors that are favorable and unfavorable to the business, competition or industry as a whole
Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category to make the analysis useful and find competitive advantage
Some research is required

3. Strengths-Internal Influences
Characteristics of the business, idea project or industry that give it an advantage over others. The business typically has control over these strengths
What is the business “known for”?
Questions to consider:
What strengths does it have?
What strengths does the competition have?
Why do these strengths exist?
Why does the competition have these strengths?

4. Weaknesses-Internal Influences
Characteristics that place the business, project or industry at a disadvantage relative to others.
Questions to consider:
What weaknesses exist?
What weaknesses does the competition have?
Why do these weaknesses exist?
Why does the competition have these weaknesses?

5. Opportunities-External Influences
Elements that the business, project or industry could exploit to its advantage.
Questions to consider:
What opportunities exist?
How can these opportunities be taken advantage of?
What opportunities does the competition have?
Are they taking advantage of these opportunities? If so, how?
What can be done to benefit from their opportunities?

6. Threats-External Influences
Elements in the environment that could cause trouble for the business, project or industry.
Questions to consider:
What are the competition’s strengths that may be a negative impact?
What strengths may hurt the competition?
How can these threats be turned into opportunities?
Is the competition doing anything to turn their threats into opportunities?

7. SWOT Analysis
Example Demonstration-McDonald’s Corporation

8. SWOT Analysis-McDonald’s Corporation
Company Background Revenues of $27.56 Billion (2012) Profits of $5.46 Billion (2012) Number of Employees (2013): 1,800,000

9. Strengths (Helpful) Largest fast food market share in the world
Close to 25,000 locations worldwide
80% of restaurants owned by independent franchisees
Brand name recognition
Valued at $40 Billion (2013)
Significant competitive advantage
Marketing
Annual $2 Billion advertising budget
Strategic partnerships with other large corporations (Disney, Pixar, NHL)

10. Weaknesses (Harmful) Declining Sales and Stock prices Unhealthy Menu
Severely impacted by economic impacts (recessions)
Impacted by currency flucuations
Unhealthy Menu
Goes against current trends
Obesity concerns (eg. Supersize Me Documentary)
Mac job/high employee turnover
Negative publicity
Minimum wage positions

11. Opportunities (Helpful)
Increasing demand for healthy food
Changing customer habits
Breakfast market
Huge potential in coffee market; highest growth market in fast food industry
Specialty coffee offerings (cappuccinos, lattes etc.)
High end burgers
Gourmet, customized burger offerings
Niche market
Bargain hunters
Implement bargain menu
Coupon discounts

12. Threats (Harmful) Competition Coffee Outlets
Saturated fast food markets in developing economies (eg. Burger King, Wendy’s)
Local fast food/quick service restaurant chains impact (eg. Tim Hortons)
Coffee Outlets
Starbucks, Tim’s, local breakfast establishments
Established customer loyalty
Healthier fast food alternatives
Subway, Wendy’s (salad menus)
Healthy eating/active lifestyle promotions
Trans fat/calorie awareness campaigns

13. SWOT Analysis-McDonald’s Corporation (Summary)
Strengths
Weaknesses
Market share (Global Influence)
Brand Name Recognition
Advertising Budget
Declining Sales and Stock Prices
Unhealthy Menu
Mac job perception

14. SWOT Analysis-McDonald’s (Summary)
Opportunities
Threats
Demand for healthy menu options
Breakfast/Coffee market growth
Gourmet Selections (high end burgers)
Bargain Hunters
Competition (saturated)
Existing and Established Coffee Outlets
Healthier Fast Food Alternatives

15. Conclusion
The SWOT analysis has beneficial and practical applications. It can:
Help organizations decide whether or not an objective is reachable
Assists organizations to set achievable goals, objectives, and steps needed to take to implement changes to the business
Identify gaps in the market and either take advantage of them or re-evaluate the company’s position based on identified or emerging trends
It enables business owners/entrepreneurs an overview of what is working well for their competitors or what can be done better than the competition
Offers a map of the company’s position in the market place (locally, regionally, globally), industry etc.