1. STRATEGIC DECISION MAKING
SWOT ANALYSIS

2. WHAT IS IT?
SWOT ANALYSIS IS A PROCESS TO IDENTIFY WHERE YOU ARE STRONG
AND CAN PURSUE OPPORTUNITIES OR
WHERE YOUR WEAKNESSES LIE AND YOU NEED TO DEFEND YOURSELF

3. SWOT IS A PLANNING TOOL
IDENTIFIES CORE COMPETENCIES TO BUILD STRATEGY AROUND
RECOGNIZES VULNERABILITIES THAT MAY DISQUALIFY YOU FROM PURSUING CERTAIN OPPORTUNITIES
PINPOINT WEAKNESSES THAT CAN BE CORRECTED

4. WHY DO IT? REVEAL COMPETITIVE ADVANTAGES ANALYZE SALES PROSPECTS
DEVELOP PRODUCTS OR MARKETS
OVERCOME PROBLEMS
PLAN FOR THE FUTURE

5. HELPS CRAFT STRATEGY
DEFINE RESOURCES /SKILLS AVAILABLE TO PURSUE OPPORTUNITY BECAUSE OPPORTUNITY WITHOUT MEANS IS AN ILLUSION
DETERMINE WHICH THREATS YOU SHOULD WORRY ABOUT THE MOST AND HELP CRAFT YOUR DEFENSE

6. WHEN TO USE IT? TAKE ON A NEW PRODUCT ENTER A NEW MARKET
HIRE AN NEW INDIVIDUAL
BUY ANOTHER COMPANY
OFFER A NEW SERVICE

7. S W O T
STRENGTH
WEAKNESS
OPPORTUNITY
THREAT

8. STRENGTHS WHAT ARE WE GOOD AT? HELP COUNTER THREATS
TAKE ADVANTAGE OF OPPORTUNITIES

9. POTENTIAL STRENGTHS DISTINCTIVE COMPETENCE FINANCIAL RESOURCES
GOOD REPUTATION WITH BUYERS
STRONG SALES FORCE
COST ADVANTAGES
INSULATED FROM COMPETITORS
MARKETING EXPERTISE

10. WEAKNESSES INTERNAL TO THE COMPANY WHERE YOU NEED TO IMPROVE
WHERE YOU COULD BE HARMED

11. POTENTIAL WEAKNESSES NO STRATEGIC DIRECTION
OBSOLETE EQUIPMENT/FACILITIES
LACK OF TALENT/KEY COMPETENCE
NARROW PRODUCT LINE
WEAK DISTRIBUTION NETWORK
HIGH COST TO MARKET
LOW PROFITABILITY

12. OPPORTUNITIES FUTURE ISSUES EXTERNAL TO COMPANY
PLACES TO TAKE ADVANTAGE

13. POTENTIAL OPPORTUNITIES
NEW CUSTOMER GROUPS
NEW TECHNOLOGY/PRODUCTS
NEW MARKET SEGMENTS
EXPANDED TERRITORY
GROWING MARKETS
WEAK RIVAL FIRMS

14. THREATS IMAGINE WHAT COULD GO WRONG FUTURE CHALLENGES
TRENDS THAT CAN HARM YOU

15. POTENTIAL THREATS NEW COMPETITORS SUBSTITUTE PRODUCTS
SLOW MARKET GROWTH
GOVT REGULATIONS/LAWS
PRODUCT LIFE CYCLE
CHANGING BUYER NEEDS/TASTES
DEMOGRAPHICS

16. Time for a SWOT analysis.
ABC Filters
Hard times are everywhere and everyone is taking stock. ABC realizes they need to do something as revenues and profits drop through no apparent fault of their own. They stand in danger of losing a main product line, as the manufacturer doesn’t agree that it’s not their fault sales are down. In addition, a new technology has come onto the market with MERV 15 filters with pressure drops of less than 0.1 in w.g., which everyone is going to want. Their current exclusive manufacturers don’t have it yet, but Manufacturer 3 does and it’s available if they are willing to stock it.
Time for a SWOT analysis.

17. SAMPLE WORKSHEET
Question 1: Please list below the four most important Strengths you feel Company brings to the marketplace as compared to our competitors. These is no need to list them in any order. 1. 2. 3. 4.
Question 2: Please list below the four most important Weaknesses you feel Company has as compared to our competitors in the market place. There is no need to list them in any order.
Question 3: Please list below four Opportunities you feel are available to Company in the marketplace which we are currently not pursuing or only partially pursuing. There is no need to list them in any order.
Question 4: Please list below the four biggest Threats you feel exist for Company in the marketplace. There is no need to list them in any order.

18. SAMPLE WORKSHEET
Question 1: Please list below the four most important Strengths you feel ABC brings to the marketplace.
1. QUALITY PRODUCTS
2. TECHNICAL EXPERTISE (COMPLIMENTS OF NAFA)
3. PROTECTION FROM COMPETITION
4. REPUTATION
Question 2: Please list below the four most important Weaknesses you feel ABC has in the market place.
1. NO SALES TRAINING
2. NO LEADERSHIP/ACTIVE STRATEGY
3. LIMITED MARKETING EXPERTISE
4. INADEQUATE WAREHOUSE SPACE
Question 3: Please list below four Opportunities you feel are available to ABC in the marketplace which are not currently being pursued or only partially pursued.
1. SALES FROM EXISTING CUSTOMERS – NEW TECHNOLOGY
2. NEW TECHNOLOGY/PRODUCT ADDITION - NEW CUSTOMERS
3. INCREASE SALES OF EXISTING PRODUCTS
4. NEW TERRITORY
Question 4: Please list below the four biggest Threats you feel exist for ABC in the marketplace.
1. PRODUCT LINE OBSOLETE/LOST
2. FALLING BEHIND THE MARKET OF NEW TECHNOLOGY
3. LOSS OF EXCLUSIVITY
4. NEW COMPETITOR

19. THE MATRIX

20. MATRIX RULES 10-12 PERSONS MAXIMUM/GROUP
PARTICIPANT WORKSHEETS COMPLETE -
CAN BE DONE BLIND
TAKE ALL SUGGESTIONS AT FACE VALUE – PRIORITY COMES LATER
REMEMBER TO VIEW FROM THE INSIDE OUT

21. ABC MATRIX

22. SCORING THE MATIX YOU MUST HAVE EQUAL NUMBER OF ITEMS IN EACH QUADRANT
RULE OF THUMB FOR POINTS IS TO USE ¾ THE NUMBER OF ITEMS
STEER AWAY FROM AWARDING LOW POINTS ACROSS THE BOARD – MAKE THE HARD CHOICES
VIEW FROM INSIDE YOUR FIRM !!!

23. SWOT NUMBERING RULES 0 - NO IMPACT 1 - LITTLE IMPACT
2 - MODERATE IMPACT
3 - HEAVY IMPACT
TOTAL POINTS PER COLUMN = APPROX ¾ THE NUMBER OF ITEMS – GENERALLY AN ODD NUMBER
SET SO THAT ZEROS MUST BE AWARDED.

24. S/O QUADRANT
S/O – TO WHAT EXTENT DOES THIS PARTICULAR STRENGTH ENABLE US TO TAKE MAXIMUM ADVANTAGE OF THIS OPPORTUNITY?
IT REALLY DOES = 3
IT HAS NO IMPACT = 0

25. W/O QUADRANT
TO WHAT EXTENT DOES THIS WEAKNESS MAXIMIZE OUR INABILITY TO TAKE ADVANTAGE OF THIS OPPORTUNITY?
MAXIMUM INABILITY = 3
NO IMPACT = 0

26. S/T QUADRANT
TO WHAT EXTENT DOES THIS STRENGTH MAXIMIZE OUR ABILITY TO COUNTER A THREAT?
MAXIMIZE OUR ABILITY = 3
NO IMPACT ON ABILITY TO COUNTER THREAT = 0

27. W/T QUADRANT
TO WHAT EXTENT DOES THIS WEAKNESS MAXIMIZE MY INABILITY TO COPE WITH THIS THREAT?
MAXIMIZE INABILITY TO COUNTER A THREAT = 3
NO IMPACT ON ABILITY TO COUNTER A THREAT = 0

28. PRIORITIZED MATRIX

29. NOW WHAT? DETERMINE WHERE YOUR STRENGTHS HELP MOST
DETERMINE WHERE YOUR WEAKNESS HURT YOU MOST
CRAFT WRITTEN STRATEGY TO DEAL WITH THE FUTURE

30. ONLINE RESOURCES WWW.MINDTOOLS.COM WWW.BUSINESSBALLS.COM
EACH OF THESE SITES OFFER FREE TEMPLATES YOU MAY USE, ALONG WITH HELPFUL GUIDELINES