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SWOT Analysis A tool for situational analysis

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Presentation on theme: "SWOT Analysis A tool for situational analysis"— Presentation transcript:

1 SWOT Analysis A tool for situational analysis

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

3 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

4 COMPETITIVE ENVIRONMENT
RESOURCES COMPETITIVE ENVIRONMENT CAPABILITIES

5 ENVIRONMENTAL SCAN EXTERNAL ANALYSIS INTERNAL ANALYSIS WEAKNESSES
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

6 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

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

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

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

10 SWOT - Analysis STRENGTHS WEAKNESS OPPORTUNITIES THREATS

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

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

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

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

15 W-O Strategies Overcome weakness to pursue opportunities

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

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

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

19 Impact Macro Micro Organization

20 Impact Structure Process Organization

21 Impact Impact Immediate Long Strategic Short

22 Impact

23 Impact Impact On Other Stakeholders Competitors Environment Internal

24 Impact Internal Employees Workers Managers Departments/ Process


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