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ND - SWOT Analysis. Lim Sei Kee @ cK. 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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nd swot analysis

ND - SWOT Analysis

Lim SeiKee @ cK

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:
  • 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:
  • 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

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
  • Technological leadership
  • Brand reputation
  • Distribution network
  • Employee skills
  • High productivity
  • Flexibility of production
  • High market share
  • Achieving economies of scale
  • High quality
  • Leadership & management skills
  • Research and development capabilities
swot analysis weaknesses
SWOT Analysis - Weaknesses

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
  • Cash flow problems
  • Undifferentiated products
  • Inadequate distribution
  • Low productivity
  • Skills shortages
  • De-motivated staff
  • Products at the decline stage of product life cycle
  • Low market share
  • Inefficient plant
  • Outdated technology
  • Poor quality
  • Lack of innovation
  • A weak brand name
  • High costs
swot analysis opportunities
SWOT Analysis - Opportunities
  • 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
  • Higher economic growth
  • Diversification opportunity
  • Deregulation of the market
  • Government spending programmes
  • Technological innovation
  • New demand
  • Market growth
  • Demographic change
  • Social or lifestyle change
swot analysis threats
SWOT Analysis - Threats
  • Threats are any external development that may hinder or prevent the business from achieving its objectives.
potential business threats
Potential Business Threats
  • Economic downturn
  • Rise of low cost production abroad
  • Higher input prices
  • New substitute products
  • Competitive price pressure
  • New market entrants
  • Change in customer tastes or needs
  • Demographic change
  • New regulations
using swot analysis
Using SWOT analysis
  • 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
  • Form a group of MAXIMUM 6 students.
  • Conduct self SWOT analysis.
  • Present it to the class after 30 mins discussion.

A: Takes the initiative in trying to exploit a business opportunity

B: Takes time to understand and calculate the risks involved

C: Makes an investment to set up the business

D: Goes ahead, despite the risk that the business venture might fail

q a what are the characteristics of successful entrepreneurs
Q&A - What are the characteristics of successful entrepreneurs?
  • Much research has been done to examine the personality and other characteristics of successful entrepreneurs to see if there is a proven method or route to success.
  • You will find many lists of “what is takes to be an entrepreneur”, but they tend to say similar things.  So here is a summary of the key findings!
successful entrepreneurs tend to have one or more of the following characteristics
Successful entrepreneurs tend to have one or more of the following characteristics:
  • Passionate about their product or service and about getting things right for the customer
  • Visionary – they have faith in what they are trying to do. 
  • Energetic and driven– prepared to work consistently long hours, especially in the early stages

Calculated risk-takers– not reckless; they are prepared to take a risk in order to maximize the rewards

  • Multi-tasker – able to take on more than one role (product development, selling, recruitment)
  • Resilient and determined– able to handle problems and overcome hurdles. Setting up a business is difficult and time-consuming

Results-orientated – take pleasure from achieving targets and setting the bar higher.

  • Persuasive – entrepreneurs are good at bringing other people and businesses “along with the idea”
  • Leadership – an entrepreneur leads his or her own business (often working alone in the early stages).  As the business develops, the skills of leading others become even more important

Self-starting and decisive – they don’t wait for others to take decisions. Entrepreneurs tend to take the initiative, spotting opportunities early and taking decisions quickly

  • Focused – sets clear goals and self-imposed high standards
  • Lucky – not to be laughed at!  Every business needs some good luck – e.g. being in the right place at the right time. 

The important thing to remember about the list is that an entrepreneur is unlikely to possess all these characteristics!

  • Anyone who starts a business has strengths and weaknesses.
  • However, the savvy entrepreneur recognizes where his/her weaknesses lie and takes steps to address them (e.g. recruit someone with the right skills).
assignment 1
Assignment #1
  • Work in a group of MAXIMUM 6 students.
  • Presentation title: “A successful entrepreneur”
  • Presentation date: 9th / 23rd / 30th MAY 2013


  • Points to remember:
  • Show up early, Proper Introduction, Clear and Concise Points, Enhance your graphics, Conclude the presentation.
  • Time: 15 – 20 minutes.
  • REPORT DUE: 1st JUNE 2013