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Swot analysis

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Naim Khalid
Naim Khalid

The document provides an overview of SWOT analysis, a framework for organizing internal and external factors that are important for strategic planning. It describes the four elements of a SWOT analysis as strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors, while opportunities and threats are external. The document gives examples of how to analyze each element and highlights benefits of SWOT analysis such as simplicity, flexibility, collaboration, and cost-effectiveness.

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SWOT Analysis Sayed Mohammad Naim KHALID Sayed Mohammad Naim April 2012 10/04/12 KHALID 1
Contents Introduction How to use SWOT analysis Productive SWOT analysis Benifits of SWOT analysis Examples of SWOT analysis References 10/04/12 2 Sayed Mohammad Naim KHALID
SWOT (1/3) A widely used framework for organizing and using data and information gained from situation analysis Encompasses both internal and external environments One of the most effective tools in the analysis of environmental data and information 10/04/12 3 Sayed Mohammad Naim KHALID
SWOT description(2/3) A SWOT analysis generates information that is helpful in matching an organizations or a groups goals, programs, and capacities to the social environment in which they operate It is an instrument within strategic planning When combined with a dialogue, it is a participatory process 10/04/12 4 Sayed Mohammad Naim KHALID
SWOT (3/3) What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares. More than this, by looking at yourself and your competitors using the SWOT framework, you can start to craft a strategy that helps you distinguish yourself from your competitors, so that you can compete successfully in your market. 10/04/12 5 Sayed Mohammad Naim KHALID
How to Use SWOT Analysis Originated by Albert S Humphrey in the 1960s, SWOT Analysis is as useful now as it was then. You can use it in two ways - as a simple icebreaker helping people get together to "kick off" strategy formulation, or in a more sophisticated way as a serious strategy tool. 10/04/12 6 Sayed Mohammad Naim KHALID
SWOT Factors affecting an organization can usually be classified as: Internal factors Strengths (S) Weaknesses (W) External factors Opportunities (O) Threats (T) 10/04/12 7 Sayed Mohammad Naim KHALID
SWOT: internal factors Strengths Positive tangible and intangible attributes, internal to an organization. They are within the organizations control Weaknesses Factors that are within an organizations control that detract from its ability to attain the core goal. In which areas might the organization improve? 10/04/12 8 Sayed Mohammad Naim KHALID
SWOT: external factors Opportunities External attractive factors that represent the reason for an organization to exist and develop. What opportunities exist in the environment which will propel the organization? Identify them by their time frames Threats External factors, beyond an organizations control, which could place the organizations mission or operation at risk. The organization may benefit by having contingency plans to address them should they occur Classify them by their seriousness and probability of occurrence 10/04/12 9 Sayed Mohammad Naim KHALID
The elements of a SWOT analysis Strengths and weaknesses Scale and cost economies Size and financial resources Intellectual, legal, and value of reputation Opportunities and threats Trends in the competitive environment Trends in the technological environment Trends in the socio-cultural environment 10/04/12 10 Sayed Mohammad Naim KHALID
Strengths (1/2) What advantages does your organization have? What do you do better than anyone else? What unique or lowest-cost resources can you draw upon that others can't? What do people in your market see as your strengths? What factors mean that you "get the sale"? What is your organization's unique selling propositin? 10/04/12 11 Sayed Mohammad Naim KHALID
Strengths (2/2) Consider your strengths from both an internal perspective, and from the point of view of your customers and people in your market. You should also be realistic - it's far too easy to fall prey to "not invented here syndrome." Also, if you're having any difficulty with this, try writing down a list of your organization's characteristics. Some of these will hopefully be strengths!When looking at your strengths, think about them in relation to your competitors. For example, if all of your competitors provide high quality products, then a high quality production process is not a strength in your organization's market, it's a necessity. 10/04/12 12 Sayed Mohammad Naim KHALID
Weaknesses (1/1) What could you improve? What should you avoid? What are people in your market likely to see as weaknesses? What factors lose you sales? Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you don't see? Are your competitors doing any better than you? It's best to be realistic now, and face any unpleasant truths as soon as possible. 10/04/12 13 Sayed Mohammad Naim KHALID
Opportunities(1/1) What good opportunities can you spot?What interesting trends are you aware of? Useful opportunities can come from such things as:Changes in technology and markets on both a broad and narrow scale. Changes in government policy related to your field.Changes in social patterns, population profiles, lifestyle changes, and so on. Local events. A useful approach when looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them. 10/04/12 14 Sayed Mohammad Naim KHALID
Threats (1/1) What obstacles do you face? What are your competitors doing? Are quality standards or specifications for your job, products or services changing? Is changing technology threatening your position? Do you have bad debt or cash-flow problems? Could any of your weaknesses seriously threaten your business? 10/04/12 15 Sayed Mohammad Naim KHALID
To have productive SWOT analysis Stay focused. Be specific and avoid grey areas. Keep your swot short and simple. Avoid complexity and over analysis Collaborate with other functional areas Examine issues from the customers/ stakeholders perspective Look for causes, not characteristics Separate internal issues from external issues 10/04/12 16 Sayed Mohammad Naim KHALID
Major benefits of SWOT analyses Simplicity Flexibility Integration and synthesis Collaboration Lower costs 10/04/12 17 Sayed Mohammad Naim KHALID
10/04/12 18 Sayed Mohammad Naim KHALID
Example SWOT Analysis(1/6) A start-up small consultancy business might draw up the following SWOT Analysis: 10/04/12 19 Sayed Mohammad Naim KHALID
Example strengths (2/6) We are able to respond very quickly as we have no red tape, and no need for higher management approval. We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers. Our lead consultant has strong reputation in the market. We can change direction quickly if we find that our marketing is not working. We have low overheads, so we can offer good value to customers. 10/04/12 20 Sayed Mohammad Naim KHALID
Example weaknesses (3/6) Our company has little market presence or reputation. We have a small staff, with a shallow skills base in many areas. We are vulnerable to vital staff being sick, and leaving. Our cash flow will be unreliable in the early stages. 10/04/12 21 Sayed Mohammad Naim KHALID
Example opportunities (4/6) Our business sector is expanding, with many future opportunities for success. Local government wants to encourage local businesses. Our competitors may be slow to adopt new technologies. 10/04/12 22 Sayed Mohammad Naim KHALID
Example threats (5/6) Developments in technology may change this market beyond our ability to adapt. A small change in the focus of a large competitor might wipe out any market position we achieve. 10/04/12 23 Sayed Mohammad Naim KHALID
Example result of SWOT (6/6) As a result of their SWOT Analysis, the consultancy may decide to specialize in rapid response, good value services to local businesses and local government. Marketing would be in selected local publications to get the greatest possible market presence for a set advertising budget, and the consultancy should keep up-to-date with changes in technology where possible. 10/04/12 24 Sayed Mohammad Naim KHALID
2nd exemple (1/4) 10/04/12 25 Sayed Mohammad Naim KHALID
2nd exemple (2/4) 10/04/12 26 Sayed Mohammad Naim KHALID
2nd exemple (3/4) 10/04/12 27 Sayed Mohammad Naim KHALID
2nd exemple (4/4) 10/04/12 28 Sayed Mohammad Naim KHALID
References http://www.mindtools.com/pages/article/newTMC_05.htm (26/02/12) http://www.quickmba.com/strategy/swot/ (01/03/12) http://www.businessballs.com/swotanalysisfreetemplate.htm (01/03/12) http://123business-fr.com/swotanalysis.aspx (05/03/12) http://www.bizstrategies.biz/swot-analysis.html (05/03/12) http://www.12manage.com/methods_swot_analysis_fr.html (10/03/12) http://business-docs.co.uk/documents/swot-analysis-template (10/03/12) 10/04/12 29 Sayed Mohammad Naim KHALID

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Swot analysis

  • 1. SWOT Analysis Sayed Mohammad Naim KHALID Sayed Mohammad Naim April 2012 10/04/12 KHALID 1
  • 2. Contents Introduction How to use SWOT analysis Productive SWOT analysis Benifits of SWOT analysis Examples of SWOT analysis References 10/04/12 2 Sayed Mohammad Naim KHALID
  • 3. SWOT (1/3) A widely used framework for organizing and using data and information gained from situation analysis Encompasses both internal and external environments One of the most effective tools in the analysis of environmental data and information 10/04/12 3 Sayed Mohammad Naim KHALID
  • 4. SWOT description(2/3) A SWOT analysis generates information that is helpful in matching an organizations or a groups goals, programs, and capacities to the social environment in which they operate It is an instrument within strategic planning When combined with a dialogue, it is a participatory process 10/04/12 4 Sayed Mohammad Naim KHALID
  • 5. SWOT (3/3) What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares. More than this, by looking at yourself and your competitors using the SWOT framework, you can start to craft a strategy that helps you distinguish yourself from your competitors, so that you can compete successfully in your market. 10/04/12 5 Sayed Mohammad Naim KHALID
  • 6. How to Use SWOT Analysis Originated by Albert S Humphrey in the 1960s, SWOT Analysis is as useful now as it was then. You can use it in two ways - as a simple icebreaker helping people get together to "kick off" strategy formulation, or in a more sophisticated way as a serious strategy tool. 10/04/12 6 Sayed Mohammad Naim KHALID
  • 7. SWOT Factors affecting an organization can usually be classified as: Internal factors Strengths (S) Weaknesses (W) External factors Opportunities (O) Threats (T) 10/04/12 7 Sayed Mohammad Naim KHALID
  • 8. SWOT: internal factors Strengths Positive tangible and intangible attributes, internal to an organization. They are within the organizations control Weaknesses Factors that are within an organizations control that detract from its ability to attain the core goal. In which areas might the organization improve? 10/04/12 8 Sayed Mohammad Naim KHALID
  • 9. SWOT: external factors Opportunities External attractive factors that represent the reason for an organization to exist and develop. What opportunities exist in the environment which will propel the organization? Identify them by their time frames Threats External factors, beyond an organizations control, which could place the organizations mission or operation at risk. The organization may benefit by having contingency plans to address them should they occur Classify them by their seriousness and probability of occurrence 10/04/12 9 Sayed Mohammad Naim KHALID
  • 10. The elements of a SWOT analysis Strengths and weaknesses Scale and cost economies Size and financial resources Intellectual, legal, and value of reputation Opportunities and threats Trends in the competitive environment Trends in the technological environment Trends in the socio-cultural environment 10/04/12 10 Sayed Mohammad Naim KHALID
  • 11. Strengths (1/2) What advantages does your organization have? What do you do better than anyone else? What unique or lowest-cost resources can you draw upon that others can't? What do people in your market see as your strengths? What factors mean that you "get the sale"? What is your organization's unique selling propositin? 10/04/12 11 Sayed Mohammad Naim KHALID
  • 12. Strengths (2/2) Consider your strengths from both an internal perspective, and from the point of view of your customers and people in your market. You should also be realistic - it's far too easy to fall prey to "not invented here syndrome." Also, if you're having any difficulty with this, try writing down a list of your organization's characteristics. Some of these will hopefully be strengths!When looking at your strengths, think about them in relation to your competitors. For example, if all of your competitors provide high quality products, then a high quality production process is not a strength in your organization's market, it's a necessity. 10/04/12 12 Sayed Mohammad Naim KHALID
  • 13. Weaknesses (1/1) What could you improve? What should you avoid? What are people in your market likely to see as weaknesses? What factors lose you sales? Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you don't see? Are your competitors doing any better than you? It's best to be realistic now, and face any unpleasant truths as soon as possible. 10/04/12 13 Sayed Mohammad Naim KHALID
  • 14. Opportunities(1/1) What good opportunities can you spot?What interesting trends are you aware of? Useful opportunities can come from such things as:Changes in technology and markets on both a broad and narrow scale. Changes in government policy related to your field.Changes in social patterns, population profiles, lifestyle changes, and so on. Local events. A useful approach when looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them. 10/04/12 14 Sayed Mohammad Naim KHALID
  • 15. Threats (1/1) What obstacles do you face? What are your competitors doing? Are quality standards or specifications for your job, products or services changing? Is changing technology threatening your position? Do you have bad debt or cash-flow problems? Could any of your weaknesses seriously threaten your business? 10/04/12 15 Sayed Mohammad Naim KHALID
  • 16. To have productive SWOT analysis Stay focused. Be specific and avoid grey areas. Keep your swot short and simple. Avoid complexity and over analysis Collaborate with other functional areas Examine issues from the customers/ stakeholders perspective Look for causes, not characteristics Separate internal issues from external issues 10/04/12 16 Sayed Mohammad Naim KHALID
  • 17. Major benefits of SWOT analyses Simplicity Flexibility Integration and synthesis Collaboration Lower costs 10/04/12 17 Sayed Mohammad Naim KHALID
  • 18. 10/04/12 18 Sayed Mohammad Naim KHALID
  • 19. Example SWOT Analysis(1/6) A start-up small consultancy business might draw up the following SWOT Analysis: 10/04/12 19 Sayed Mohammad Naim KHALID
  • 20. Example strengths (2/6) We are able to respond very quickly as we have no red tape, and no need for higher management approval. We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers. Our lead consultant has strong reputation in the market. We can change direction quickly if we find that our marketing is not working. We have low overheads, so we can offer good value to customers. 10/04/12 20 Sayed Mohammad Naim KHALID
  • 21. Example weaknesses (3/6) Our company has little market presence or reputation. We have a small staff, with a shallow skills base in many areas. We are vulnerable to vital staff being sick, and leaving. Our cash flow will be unreliable in the early stages. 10/04/12 21 Sayed Mohammad Naim KHALID
  • 22. Example opportunities (4/6) Our business sector is expanding, with many future opportunities for success. Local government wants to encourage local businesses. Our competitors may be slow to adopt new technologies. 10/04/12 22 Sayed Mohammad Naim KHALID
  • 23. Example threats (5/6) Developments in technology may change this market beyond our ability to adapt. A small change in the focus of a large competitor might wipe out any market position we achieve. 10/04/12 23 Sayed Mohammad Naim KHALID
  • 24. Example result of SWOT (6/6) As a result of their SWOT Analysis, the consultancy may decide to specialize in rapid response, good value services to local businesses and local government. Marketing would be in selected local publications to get the greatest possible market presence for a set advertising budget, and the consultancy should keep up-to-date with changes in technology where possible. 10/04/12 24 Sayed Mohammad Naim KHALID
  • 25. 2nd exemple (1/4) 10/04/12 25 Sayed Mohammad Naim KHALID
  • 26. 2nd exemple (2/4) 10/04/12 26 Sayed Mohammad Naim KHALID
  • 27. 2nd exemple (3/4) 10/04/12 27 Sayed Mohammad Naim KHALID
  • 28. 2nd exemple (4/4) 10/04/12 28 Sayed Mohammad Naim KHALID
  • 29. References http://www.mindtools.com/pages/article/newTMC_05.htm (26/02/12) http://www.quickmba.com/strategy/swot/ (01/03/12) http://www.businessballs.com/swotanalysisfreetemplate.htm (01/03/12) http://123business-fr.com/swotanalysis.aspx (05/03/12) http://www.bizstrategies.biz/swot-analysis.html (05/03/12) http://www.12manage.com/methods_swot_analysis_fr.html (10/03/12) http://business-docs.co.uk/documents/swot-analysis-template (10/03/12) 10/04/12 29 Sayed Mohammad Naim KHALID