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SWOT Analysis A tool for situational analysis
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Environmental factors internal to the organization are classified as Strengths (S) and Weakness (W).
External factors are referred to Opportunities (O) and Threats (T)
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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
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COMPETITIVE ENVIRONMENT
RESOURCES COMPETITIVE ENVIRONMENT CAPABILITIES
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ENVIRONMENTAL SCAN EXTERNAL ANALYSIS INTERNAL ANALYSIS WEAKNESSES
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
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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
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WEAKNESS Absence of certain strengths or the flip side of the strength
Eg : A poor reputation High Cost structure
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OPPORTUNITIES The external environment may reveal certain opportunities for growth and development. Eg : Loosening of regulations. Removal of international trade barriers
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THREATS Changes in external environment may present certain threats
Eg. Shift in consumer taste Emergence of substitute product New regulations Increased trade barries
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SWOT - Analysis STRENGTHS WEAKNESS OPPORTUNITIES THREATS
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SWOT to TOWS Matrix Strengths-Maximize Weakness-Minimize
Opportunities-Maximize Threats-Minimize Weakness-Minimize Opportunities-Maximize Threats-Minimize Opportunities-Maximize Threats-Minimize
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S-W Strategies Identify ways that firm can use its strengths to reduce the impact of its weaknesses.
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S-T Strategies Identify ways that firm can use its strengths to reduce its vulnerability to external threats
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S-O Strategies : To pursue opportunities that are a good fit for the company’s strength.
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W-O Strategies Overcome weakness to pursue opportunities
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W-T Strategies Establish a defense plan to prevent the firm’s weaknesses from making it highly susceptible to external strengths
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O-T Strategies : To pursue opportunities that can overcome threats to the company’s.
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Decision Micro level, Macro level. Structural, Process
Immediate, Short term, Long term Individual, Group, Organizational
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Impact Macro Micro Organization
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Impact Structure Process Organization
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Impact Impact Immediate Long Strategic Short
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Impact
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Impact Impact On Other Stakeholders Competitors Environment Internal
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Impact Internal Employees Workers Managers Departments/ Process
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