SWOT Analysis

Page 1

Strategic Planning Model : A B C D E

Where we are

Assessment

Environmental
Scan
Background
Information
Situational
Analysis
SWOT
Strengths,
Weaknesses,
Opportunities,
Threats

Where we want to be

Baseline

Situation Past,
Present and Future
Significant Issues
Align / Fit with
Capabilities
Gaps

Components

Mission & Vision

Values / Guiding
Principles
Major Goals
Specific
Objectives

How we will do it

Down to Specifics

Performance
Measurement
Targets / Standards
of Performance
Initiatives and
Projects
Action Plans

How are we doing

Evaluate

Performance
Management
Review Progress
Balanced Scorecard

Take Corrective
Actions
Feedback
upstream revise
plans

Page 2

Assessment

Page 3

Assessment Model:
SWOT

Assessment

Internal
InternalAssessment:
Assessment:Organizational
Organizationalassets,
assets,
resources,
people,
culture,
systems,
resources, people, culture, systems,
partnerships,
partnerships,suppliers,
suppliers,. .. .. .
External
ExternalAssessment:
Assessment:Marketplace,
Marketplace,
competitors,
social
trends,
competitors, social trends,technology,
technology,
regulatory
environment,
economic
regulatory environment, economiccycles
cycles. .
SWOT

Good Points
Easy to Understand
Apply at any
organizational level

SWOT

Possible Pitfalls
Needs to be Analytical
and Specific
Be honest about your
weaknesses
Page 4

Strengths

Assessment

Strengths Those things that you do well, the

high value or performance points
Strengths can be tangible: Loyal customers,
efficient distribution channels, very high quality
products, excellent financial condition
Strengths can be intangible: Good leadership,
strategic insights, customer intelligence, solid
reputation, high skilled workforce
Often considered companys Core Competencies
Page 5

Core Competencies

Assessment

The bundles of skills or knowledge sets that enable a firm to

provide the greatest level of value to its customers in a way that is
difficult for competitors to emulate or imitate and that provide
future growth.

Ability of a company integrate a variety of specific technologies

and skills of the staff in the development of the new products and
services
Eg:

Sonny : known for its expertise in miniaturization. Result in product

features which are portable and has aesthetics design.
Boeing : ability to integrate large scale complex systems
Page 6

Weaknesses

Assessment

Weaknesses Those things that prevent you from

doing what you really need to do
Since weaknesses are internal, they are within
your control
Weaknesses include: Bad leadership, unskilled
workforce, insufficient resources, poor product
quality, slow distribution and delivery channels,
outdated technologies, lack of planning, . . .
Page 7

Assessing Strengths & Weaknesses

Cut through the symptoms and identify
internal strengths and weaknesses in the
following key areas:
Sales/marketing/distribution
Product features/range/competitiveness
Manufacturing efficiency/capacity
Financial position/resources/performance
Page 8

Assessing Strengths & Weaknesses

(contd)
R&D effort/direction/resources
Management resources/expertise
Purchasing and materials - sources/supply cost
Systems and organisational effectiveness

Page 9

Opportunities

Assessment

Opportunities Potential areas for growth and higher

performance
External in nature marketplace, unhappy customers
with competitors, better economic conditions, more
open trading policies, . .
Internal opportunities should be classified as Strengths
Timing may be important for capitalizing on
opportunities
Page 10

New Product Introduction Timings

Assessment

First to Market Introduce the product before competition to get

larger market share. Require large R&D investment, good pricing
strategy
Second to Market Quickly imitate successful outputs offered by
First to Market, offer improved and enhanced versions of the
original product.
Late to Market Wait until a product becomes fairly
standardised and is demanded in large volume and then compete
on the basis of costs as oppose to product enhancement.
Market Segmentation Focuses on serving niche markets with
specific needs.
Page 11

Threats

Assessment

Threats Challenges confronting the organization,

external in nature
Threats can take a wide range bad press
coverage, shifts in consumer behavior, substitute
products, new regulations, . . .
May be useful to classify or assign probabilities to
threats
The more accurate you are in identifying threats,
the better position you are for dealing with the
sudden ripples of change.

Page 12

Determining Threats & Opportunities

Identify critical threats & main opportunities due to:
Industry Features:
Size and segmentation
Growth pattern and maturity
Established practices
Emergence/contraction of niches
International Dimension

Page 13

Determining Threats & Opportunities

Identify critical threats & main opportunities due to:
Changes In Market Place
Customers: their expectations, attitute
Distribution channels
Economic factors (GDP, Inflation, Unemployment)
Social /Demographic/Political (government control and support)

Page 14

Determining Threats and Opportunities

(contd)
Competitors

Numbers and Identities

Performance
Likely plans
Capacity to make/sell/innovate
Market shares
Strengths/weaknesses
Page 15

Determining Threats and Opportunities

(contd)
Technology:

New materials/processes
New products/applications
Rate of innovation

Page 16

Baseline

Page 17

Components

Page 18

Down to
Specifics

Page 19

Evaluate

Page 20

Tips When Preparing a Business Plan

Own the Contents

Ensure the Plan fits You

Be Realistic
Be Clear in Your Objectives
Be Concise and Clear, Avoid Padding
Well Presented, Typed and Bound
Remember not everything goes as Planned
Page 21