Presented by

SANJAY GUPTASANJIT THAPA

A widely used framework for organizing and using data and information gained from situation analysis

One of the most effective tools in the analysis of environmental data and information

A SWOT analysis generates information that is helpful in matching an organization’s or a group’s goals, programs, and capacities to the social environment in which they operate

SWOT analysis

Cont………

It is an instrument within strategic planning

Encompasses both internal and external environments

SWOT

• Factors affecting an organization can usually be classified as:

• Internal factors – Strengths (S) – Weaknesses (W)

• External factors– Opportunities (O) – Threats (T)

Strengths Weaknesses

Opportunities Threats

SWOT: internal factors

Strengths

Positive tangible and intangible attributes, internal to an organization. They are within the organization’s control

Beneficial aspect of the organization or the capabilities of an organization, which includes human competencies, process capabilities. Financial resources, product and services, customer goodwill and brand loyalty

SWOT: internal factors

Strength are good for the company to take competitive advantage from the market.

Strengths are important to provide extra energy to compete in the market is relation to the competitors

SWOT: internal factors cont....

Example

– Well-know brand name

– Lower cost ( raw materials or process)

– Better marketing skill

– Committed employee

– Price, value, quality

SWOT: internal factors

Weakness

Weakness arise due to a lack of important skills and expertise, physical and weak competitive capabilities in key areas

Factors that are within an organization’s control that detract from its ability to attain the core goal. In which areas might the organization improve?

Characteristic that place the firm at a disadvantage relative to others.

SWOT: internal factors cont....

Detract the organization from its ability to attain the core goal and influence its growth

Weakness are the factors which do not meet the standards we feel they should meet, however weakness are controllable. The must be minimized and eliminated

SWOT: internal factors cont....

Examples

Limited distribution Higher cost Out of date product / technology Poor marketing skill Limited management skills

SWOT: external factors

Opportunities Opportunity is a situation where a company will gain

something by planning and exploiting its resources strategically

Arise when an organization can take benefit of conditions in its environment to plan and execute strategic that enable it to become more profitable

Every firm has to use its internal resources strategically to get the opportunity from the external environment

SWOT: external factors cont....

Chance to make greater profits in the environment –external attractive factor that represent the reason for an organization to exist and develop

Organization should be careful and recognize the opportunity may arise, opportunities may arise from market, competition, internet/ government/ technology

SWOT: external factors cont....

Examples

Rapid market Rival firms are complacent Changing customer needs/wants New users of product discover Technology development and innovation Market response to tactics, e.g., surprise

SWOT: external factors cont....

Threats

Threats represent an unfavorable situation for a company restraining to compete and make profits

Situation arise when there is an increasing number of competing firms in the industry, slow pace of market growth, increasing bargaining power of the supplier or customers etc..

SWOT: external factors cont....

External elements in the environment that could cause trouble for the business-external factors, beyond an organization control which could place the organization mission or operation at risk

Threats are uncontrollable, when a threat comes the stability and survival can ne at stake

Classify them by their “seriousness” and “probability of occurrence

SWOT: external factors cont....

Examples

Entry of foreign competitors Introduction of new substitute products Product life cycle in decline Increased government regulation Political effects New technologies, services, ideas

The end