SWOT 14-0. SWOT ANALYSIS 14-1 A tool for auditing ( help to focus on key issues ) an organization and its environments A strategic planning tool that.

SWOTSWOT

14-1

SWOT ANALYSISSWOT ANALYSIS

14-2

A tool for auditing ( help to focus on key issues ) an

organization and its environments

A strategic planning tool that separates influences

on a business’s future success into internal and

external factors.

Strengths

Opportunities

Weakness

Threats

Internal Factors

External Factors

SWOT AnalysisSWOT Analysis

SWOT AnalysisSWOT Analysis

S – StrengthsW – Weaknesses

O – Opportunities-T – Threats

SWOT Analysis allows businesses to…SWOT Analysis allows businesses to…

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- Define realistic goals

- Improve capability

- Overcome weaknesses with

strengths

- Identify threats than can be

turned into opportunities

Brainstorming QuestionsBrainstorming Questions

What opportunities exist in our external environment?

What threats to the institution exist in our external

environment?

What are the strengths of our institution?

What are the weaknesses of our institution?

Internal factors

Strengths and Weaknesses

Internal factors

Strengths and Weaknesses

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 14-7

SWOT: Internal FactorsSWOT: Internal Factors

Strengths

– Positive tangible and intangible

attributes, internal to an organization.

– They are within the organization’s

control.

StrengthsStrengths

What do you do particularly well?

What do you do that is unique in the

“marketplace?”

What do your customers/clients/patrons ask for

you to do over and over again?

What do you have the right tools/resources to

accomplish?

A strength can be competitive advantages :A strength can be competitive advantages :

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• Your specialist marketing

expertise.

• A new, innovative product or

service.

• Location of your business.

• Quality processes and

procedures.

• Any other aspect of your

business that adds value to your

product or service.

WeaknessesWeaknesses

Weaknesses

–Factors that are within an

organization’s control that

detract from its ability to

attain the core goal.

–Which areas might the

organization improve?

A weakness can be a disadvantage such as…A weakness can be a disadvantage such as…

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Lack of marketing

expertise.

Undifferentiated products

or services (i.e. in relation to

your competitors).

Inferior location of your

business.

Poor quality goods or

services.

Damaged reputation.

External factors

Opportunity and Threat

External factors

Opportunity and Threat

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 14-13

SWOT : External FactorsSWOT : 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” .

OpportunitiesOpportunities

Are there new situations coming down the road

that you can take advantage of (new programs

being offered, new faculty joining the

department, new tools available to you)?

Are there gaps in the “market” that you can fill?

Are there partnerships that might be fruitful?

An Opportunity can be :An Opportunity can be :

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A developing market such as the

Internet.

Moving into new market segments

that offer improved profits.

A new international market.

A market vacated by an

ineffective competitor

SWOT: External FactorsSWOT: External Factors

Threats

– External factors, beyond an organization’s control,

which could place the organization mission or

operation at risk.

– The organization may benefit by having contingency

plans to address them if they should occur.

– Classify them by their “seriousness” and “probability

of occurrence”.

ThreatsThreats

Who is your competition and what do they offer that you can’t do as well

or at all?

Are there “environmental” changes or situations that could cause

problems for you and your programs?

What other roadblocks are being thrown in your path?

A threat can be :A threat can be :

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• A new competitor in your home market.

• Price wars with competitors.

• A competitor has a new, innovative

product or service.

• Competitors have superior access to

channels of distribution.

• Taxation is introduced on your product

or service (Unfavourable regulation

changes)

• Market shrinkage

Threat : Hotel industryThreat : Hotel industry

Guest houses replace the hotels.

Political turbulence in the area reduces tourist traffic and thus

the business of thehotels

Changing trends in the west demand similar changes in India

The economic conditions of a country have a direct impact on

the earnings in hotel industry.

Lack of training man power in the hotel industry.

Fluctuations in international tourist arrivals.

Increasing competition 14-20

Simple Rules SWOT Analysis Simple Rules SWOT Analysis

Be realistic about the strengths and weaknesses of your organization or group

Distinguish between where your organization is today, and where it could be in the future

Be specific: Avoid gray areas.

Simple Rules SWOT Analysis Simple Rules SWOT Analysis

Always analyze in relation to your core

values, mission, mandate, goals, vision.

Keep your SWOT short and simple.

Avoid complexity and over analysis

Empower SWOT with a logical

conceptual framework.

SWOT (OTSW) MATRIXSWOT (OTSW) MATRIX

Opportunities-external

1. 2. 3.4.5.

Threats-external

1. 2. 3.4.5.

Strengths-Internal 1. 2. 3.4.5.

Weaknesses-Internal1. 2. 3.4.5.