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8/20/2019 223pmg 4chapter 4- Swot Analysis
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!
SWOT Analysis
S W O T
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SWOTAnalysis
Oppurtunity
Threats
Strengths
Weakness
Acronym forStrengths ,Weaknesses ,Opportunities , andThreats . Technique is credited toAlbert Humphrey wholed a research projectat Stanford Universityin the 196 s and19! s.Planning tool used tounderstand Stren"ths,#ea$nesses,%pportunities, &
Threats involved in aproject ' (usiness.
Technique that ena(lesa "roup ' individual tomove from everydaypro(lems ' traditional
strate"ies to a freshperspective .
What is SWOT Analysis?
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#hat is S#%T)
• S#%T is a (usiness orstrate"ic plannin" techniqueused to summarise the $eycomponents of your
strate"ic environments.
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*ntroduction
• S#%T analysis +stren"ths,wea$nesses, opportunities, and
threats analysis is a framewor$ foridentifyin" and analy-in" the internaland e ternal factors that can have animpact on the via(ility of a project,product, place or person.
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SWOT is a summary of your•
S trengths• W eaknesses• O pportunities • Threats
Internal
ternal
S#%T Analysis
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*nternal vs. 0 ternal•
Strengths an" Weaknesses areconsidered internal factors meanin"you as the (usiness owner can controlthem. 2ow you mana"e or mar$et the
(usiness controls whether it is astren"th or wea$ness
•
Opportunities an" Threats are
considered external factors meanin"you have little control over them. *t isyour jo( as a (usiness owner to
respon" appropriately .
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S#%T analysis e amines four elements3
• Stren"ths internal attri(utes and resources that
support a successful outcome.
• #ea$nesses internal attri(utes resources that
wor$ a"ainst a successful outcome.
•
%pportunities e ternal factors the project cancapitali-e on or use to its advanta"e.
• Threats e ternal factors that could jeopardi-e
the project.
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ST# $%THS
&haracteristics of the business or ateam that give it an a"vantage overothers in the in"ustry'
Positive tangible an" intangible attributes(internal to an organi)ation'
*ene+cial aspects of the organi)ation orthe capabilities of an organi)ation( ,hichinclu"es human competencies( processcapabilities( +nancial resources( pro"uctsan" services( customer goo",ill an" bran"loyalty'
amples -( Well-kno,n bran" name((.o,er costs /ra, materials or processes0(Superior management talent( *ettermarketing skills( %oo" "istribution skills(&ommitte" employees'
What is SWOT Analysis?
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W A1$ SS S
&haracteristics that place the+rm at a "isa"vantage relativeto others'2etract the organi)ation from itsability to attain the core goal an"in3uence its gro,th'
Weaknesses are the factors ,hich "onot meet the stan"ar"s ,e feel theyshoul" meet' Ho,ever( sometimes,eaknesses are controllable' Theymust be minimi)e" an" eliminate"'
amples - .imite" +nancial resources(.imite" "istribution( Higher costs( Out-of-"ate pro"ucts 4 technology( Weakmarket image( Poor marketing skills(.imite" management skills'
What is SWOT Analysis?
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%44%5TU *T*0S
What is SWOT Analysis?
&hances to make greater pro+ts in theenvironment - ternal attractive factors thatrepresent the reason for an organi)ation toe ist 5 "evelop'
Arise ,hen an organi)ation can take bene+tof con"itions in its environment to plan an"e ecute strategies that enable it to becomemore pro+table .Organi)ation shoul" be careful an"recogni)e the opportunities an" graspthem ,henever they arise' Opportunitiesmay arise from market( competition(in"ustry4government an" technology'
amples - #api" market gro,th(&hanging customer nee"s4tastes( $e,uses for pro"uct "iscovere"( conomicboom( Sales "ecline for a substitutepro"uct '
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SWOT A A78S*S T250AT
!
TH# ATS
What is SWOT Analysis?
ternal elements in the environmentthat coul" cause trouble for thebusiness - ternal factors( beyon" anorgani)ation6s control( ,hich coul"place the organi)ation6s mission oroperation at risk'
Arise ,hen con"itions in e ternalenvironment 7eopar"i)e the reliabilityan" pro+tability of the organi)ation6sbusiness'
amples - ntry of foreign competitors(&hanging customer nee"s4tastes( #ival+rms( a"opt ne, strategies( Increase"government regulation( conomic"o,nturn'
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Ho, to con"uct SWOTAnalysis?
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Tips 5 ercise
8A9P.
:c ;onald
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W A1$ SS S
• 2i"h trainin" costs due to hi"h turnover.• ot much variation in seasonal products .• =uality concerns due to franchised
operations.•
>ocus on (ur"ers ' fried foods not onhealthieroptions for their customers.
• ?ommunity oriented• @lo(al operations all over the world• ?ultural diversity in the foods• 0 cellent location•
Assem(ly line operations.
ST# $%THS
I$T #$A.
• :ar$etin" strate"ies that enticepeople from
small children to adults.• 7awsuits for o erin" unhealthy foods.• The vast amount of fast food
restaurants thatare open as competition..
• ;own turn in economy a ectin" thea(ility to eat
that much.
TH# ATS
• %penin" more joint ventures.• Bein" more responsive to healthier
options.• 0 pandin" on the advertisin" on (ein"
more socially responsi(le• 0 pansions of (usiness into newly
developedparts of the world.
OPPO#T:$ITI S
8T #$A.
Tips 5 ercise9c 2onal"6sSWOT Analysis
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Thank ;ou!