SWOT ANALYSIS

By: Samia KamalID:163

SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person.

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Strength:

Characteristics of the business or team that give it an advantage over others in industryPositive tangible & intangible attributes internal to an organizationBeneficial aspects of the organization, which include human competencies, process capabilities, financial resources, products & services, customer goodwill & brand loyality.

Example: abundant financial resources, well-known brand name, economics of scale, lower cost, superior management talent, better marketing skill, good distribution skill, comitted employess.

Weakness:→Characteristics that place the firm at a disadvantage relative to others→Detract the organization from its ability to attain the core goal & influence its growth→weakness are the factors which don’t meet the standards they should meet. However, Weakness are controllable & must be minimized & eliminated.→Example: Limited financial source; weak spending in R&D; very narrow product line; limited distribution; higher cost; out-of-date products/technology; weak market image; poor marketing skills; limited management skills; under trained employees.

Opportunities:

Chances to make greater profits in the environment.External attractive factors that represent the reason

for an organization to exist & develop.Arise when an organization can take benefit of

conditions in its environment to plan & execute strategies that enable it to become more profitable.

Organization should be careful & recognize the opportunities & grasp them whenever they arise from market, competition, government, technology.

Example: Rapid market growth; rival firms are complacent; changing customer needs, tastes; new uses for product discover; economic boom; government deregulation, sales decline for substitute product.

Threats:External elements in the

environment that could cause trouble for the business.

External factors beyond an organization’s control.

Arise when conditions in external environment jeopardize the reliability & profitability of the organization’s business.

Example: Entry of foreign competitors; introduction of new substitute products; product life cycle in decline; changing customer needs, tastes; rival firms adopt new strategies; increased government regulation; economic downturn.

Analyse Intenal & External Environment

Perform SWOT Analysis & Document Prepare Action Plan

How to conduct SWOT analysis:

SummaryWhatever courses of action is decided there is four-concerns that SWOT analysis prompts to move in a balanced way throughout program. It reminds to:

Build on own strengths Minimize own weaknesses Seize opportunities Counteract threats

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