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Lim Sei Kee @ cK. SC3 - SWOT Analysis. SWOT analysis is a method for analyzing a business, its resources, and its environment. SWOT is commonly used as part of strategic planning and looks at:. Internal strengths Internal weaknesses Opportunities in the external environment

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Lim sei kee @ ck

Lim SeiKee @ cK

SC3 - SWOT Analysis



Swot is commonly used as part of strategic planning and looks at
SWOT is commonly used as part of strategic planning and looks at:

  • Internal strengths

  • Internal weaknesses

  • Opportunities in the external environment

  • Threats in the external environment


Swot can help management in a business discover
SWOT can help management in a business discover: looks at:

  • What the business does better than the competition

  • What competitors do better than the business

  • Whether the business is making the most of the opportunities available

  • How a business should respond to changes in its external environment


The result of the analysis is a matrix of positive and negative factors for management to address
The result of the analysis is a matrix of positive and negative factors for management to address:


The key point to remember about swot is that
The key point to remember about SWOT is that: negative factors for management to address:

  • Strengths and weaknesses

  • Are internal to the business

  • Relate to the present situation

  • Opportunities and threats

  • Are external to the business

  • Relate to changes in the environment which will impact the business


Swot analysis strengths
SWOT Analysis - Strengths negative factors for management to address:

Strengths are:

  • Things a business is good at

  • A characteristic giving a business an important capability

  • Sources of clear advantage over rivals

  • Distinctive competencies and resources that will help the business achieve its objectives


Examples of potential business strengths
Examples of Potential Business Strengths negative factors for management to address:

  • High market share

  • Achieving economies of scale

  • High quality

  • Leadership & management skills

  • Technological leadership

  • Brand reputation

  • Employee skills

  • High productivity


Swot analysis weaknesses
SWOT Analysis - Weaknesses negative factors for management to address:

Weaknesses are:

  • A source of competitive disadvantage

  • Things the business lacks or does poorly

  • Factors that place a business at a disadvantage

  • Issues that may hinder or constrain the business in achieving its objectives


Examples of potential business weaknesses
Examples of Potential Business Weaknesses negative factors for management to address:

  • Low market share

  • Outdated technology

  • Poor quality

  • Lack of innovation

  • Cash flow problems

  • Inadequate distribution

  • Low productivity

  • Skills shortages


Swot analysis opportunities
SWOT Analysis - Opportunities negative factors for management to address:

  • An opportunity is any feature of the external environment which creates positive potential for the business to achieve its objectives.


Potential business opportunities
Potential Business Opportunities negative factors for management to address:

  • Technological innovation

  • New demand

  • Market growth

  • Social or lifestyle change

  • Higher economic growth

  • Diversification opportunity

  • Deregulation of the market


Swot analysis threats
SWOT Analysis - Threats negative factors for management to address:

  • Threats are any external development that may hinder or prevent the business from achieving its objectives.


Potential business threats
Potential Business Threats negative factors for management to address:

  • New market entrants

  • Change in customer tastes or needs

  • Demographic change

  • New regulations

  • Economic downturn

  • Rise of low cost production abroad

  • Higher input prices

  • Competitive price pressure


Using swot analysis
Using SWOT analysis negative factors for management to address:

  • There is no point producing a SWOT analysis unless it is actioned!

  • SWOT analysis should be more than a list - it is an analytical technique to support strategic decisions

  • Strategy should be devised around strengths and opportunities


The key words are match and convert
The key words are negative factors for management to address:match and convert:



Activity
Activity into strengths.  EG:

  • Form a group of MAXIMUM 4 students.

  • Conduct self SWOT analysis.

  • Present it to the class after 30 - 45 mins discussion.


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