A SWOT analysis identifies a company's strengths, weaknesses, opportunities, and threats. It is used to formulate strategies and make decisions. The document outlines how to conduct a SWOT analysis, including identifying internal strengths and weaknesses and external opportunities and threats. It also describes how to create a SWOT matrix to match these factors and determine appropriate strategies. The analysis should focus on the most important and urgent issues that influence strategy. Conducting a SWOT analysis helps companies respond to opportunities, address threats, leverage strengths, and improve weaknesses.

1. SWOT ANALYSISSWOT ANALYSIS
 Is usually required when;Is usually required when;
 When formulating your strategic directionWhen formulating your strategic direction
 Drawing strategic/business/marketing plansDrawing strategic/business/marketing plans
 Convincing creditors, investors, and topConvincing creditors, investors, and top
management about the firm’s future ormanagement about the firm’s future or
strategic directionstrategic direction
 When making your strategic choice/whenWhen making your strategic choice/when
modifying the existing strategy or itsmodifying the existing strategy or its
tactics/crafting (formulating) a newtactics/crafting (formulating) a new
strategicstrategic

2.  Internal assessment:Internal assessment:
 StrengthsStrengths
 WeaknessesWeaknesses
 External assessment:External assessment:
 OpportunitiesOpportunities
 ThreatsThreats
 Which of these are of important or not,Which of these are of important or not,
urgent or not, relevant or not in relationurgent or not, relevant or not in relation
to your strategic direction, strategy to beto your strategic direction, strategy to be
used, resources available (feasibility?),used, resources available (feasibility?),
and values of top management?and values of top management?

3.  A firm needs to:A firm needs to:
 Respond to / take advantage of those goldenRespond to / take advantage of those golden
opportunitiesopportunities
 Cope with and encounter those potentially frustratingCope with and encounter those potentially frustrating
threatsthreats
 Correct weaknessesCorrect weaknesses
 Exploit / capitalize on its strengthsExploit / capitalize on its strengths
 This matching of the SWOT variables/issues resultsThis matching of the SWOT variables/issues results
into SWOT matrix that guides the appropriateness ofinto SWOT matrix that guides the appropriateness of
your future strategic choiceyour future strategic choice
 Develop a SAP chart for Strengths and weaknesses,Develop a SAP chart for Strengths and weaknesses,
and an ETOP chart for Opportunities and Threatsand an ETOP chart for Opportunities and Threats
to decide on the appropriate tactics (actions) to use into decide on the appropriate tactics (actions) to use in
your chosen strategiesyour chosen strategies

4.  A firm should single out those SWOTA firm should single out those SWOT
facts that are more urgent, importantfacts that are more urgent, important
and most likely to influence itsand most likely to influence its
strategy/approach to your strategicstrategy/approach to your strategic
direction.direction.
 A firm should also match its strengthsA firm should also match its strengths
and weaknesses, to its opportunitiesand weaknesses, to its opportunities
and threats in the environment in formand threats in the environment in form
of a SWOT matrix.of a SWOT matrix.

5. Before your SWOT matrix ,askBefore your SWOT matrix ,ask
yourselves internallyyourselves internally
 In what areas have our strengths improved within this period,In what areas have our strengths improved within this period,
and to what extent?and to what extent?
 Where have we managed to counter our weaknesses?Where have we managed to counter our weaknesses?
 In which areas of weakness are we continuously deterioting?In which areas of weakness are we continuously deterioting?
 Are we too weak, strong enough, or stable? Are these areas ofAre we too weak, strong enough, or stable? Are these areas of
importance to us?importance to us?
 What can we then do with our strengths, and about our areasWhat can we then do with our strengths, and about our areas
of weaknesses?of weaknesses?
 Not ignoring those relevant Opportunities and Threats, afterNot ignoring those relevant Opportunities and Threats, after
answering those relevant questions, go a head with youranswering those relevant questions, go a head with your
SWOT matrixSWOT matrix

6. OPPORTUNITIESOPPORTUNITIES
-Growing market for-Growing market for
our productsour products
-Tax holidays-Tax holidays
-Competent-willing-Competent-willing
supplierssuppliers
THREATSTHREATS
-Better competititors-Better competititors
-Future hostile take--Future hostile take-
overover
-Political instability-Political instability
-Inferior product-Inferior product
rangerange
RegulationsRegulations
STRENGTHSSTRENGTHS
-Strong capital base-Strong capital base
-Many loyal customers-Many loyal customers
-Competent and-Competent and
customer-centered staffcustomer-centered staff
WEAKNESSESESWEAKNESSESES
-Low market share-Low market share
-Uncommitted staff-Uncommitted staff
-High production costs-High production costs
Incompetent leadersIncompetent leaders

7. StrengthsStrengths WeaknessesWeaknesses
OpportunitOpportunit
iesies
Using strengths toUsing strengths to
exploit opportunitiesexploit opportunities
CorrectingCorrecting
weaknesses toweaknesses to
exploitexploit
opportunitiesopportunities
ThreatsThreats Using strengths toUsing strengths to
combat threatscombat threats
CorrectingCorrecting
weaknesses toweaknesses to
combat threatscombat threats

8. StrengthsStrengths WeaknessesWeaknesses
OpportunitOpportunit
iesies
StrategiesStrategies
Expansion/diversifExpansion/diversif
yingying
Controlled out-Controlled out-
sourcing to suchsourcing to such
supplierssuppliers
Tax ConsultingTax Consulting
StrategiesStrategies
Acquisition of theAcquisition of the
rival/team workrival/team work
 Use a whiteUse a white
knight/poison pillknight/poison pill
ProductProduct
innovations/innovations/
developmentsdevelopments
ThreatsThreats ControlledControlled
expansionexpansion
RelationshipRelationship
MBOMBO
Overall CostOverall Cost
LeadershipLeadership

9. TasksTasks
 Read aboutRead about
1.1. Identify the strengths and weaknesses of suchIdentify the strengths and weaknesses of such
a model using all the models above. Use a firma model using all the models above. Use a firm
of your choiceof your choice
2.2. Discuss-understand and pass SM highly ,Discuss-understand and pass SM highly ,
become a world class business competititor,become a world class business competititor,
and put God first because he is the bestand put God first because he is the best
strategist.strategist.

10. TasksTasks
 Read aboutRead about
1.1. Identify the strengths and weaknesses of suchIdentify the strengths and weaknesses of such
a model using all the models above. Use a firma model using all the models above. Use a firm
of your choiceof your choice
2.2. Discuss-understand and pass SM highly ,Discuss-understand and pass SM highly ,
become a world class business competititor,become a world class business competititor,
and put God first because he is the bestand put God first because he is the best
strategist.strategist.