Analysis? SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.

1. “Strength doesn’t come from what you can
do but it comes from overcoming the
things you once thought you couldn’t.”

2. SWOT Analysis:
 To innovate, an entrepreneur has to make a
diagnosis of the current situation.
 The diagnosis of the current situation is done by
conducting an internal analysis and external
analysis.
 Analysis of External and Internal Environment
together is called SWOT Analysis.
 A SWOT analysis is designed to facilitate a realistic,
fact-based, data-driven look at the strengths and
weaknesses of an organization, its initiatives, or an
industry.

3. SWOT
Analysis
Strengths
Threats
Weaknesses
Opportunities
S-Strengths and W-Weaknesses: Of the organization
O-Opportunities and T-Threats : Of the environment

5.  The Internal Analysis
of the organization will
cover the
organizational position
with respect to different
functional areas like
production, finance,
marketing, R &
Distribution and so on.
 This will reveal its
strength and
weakness.
 The External Analysis will
do the necessary
scanning of the business
environment to identify
any threat and
opportunities posed on
the company, its products
or services.
 More specifically, this will
include the industry
performance, competitive
activity and a review of
the growth and decline of
the user industries.
SWOT analysis is an evaluation tool that is
designed to facilitate a realistic, fact-based, data-
driven look at the strengths and weaknesses of an

6. Some of the strengths of an
organization are:
 Availability of necessary infrastructure
 Skilled manpower
 Good manufacturing practices, quality assurance
and quality control
 Facilities for product and process development
 Good location
 Motivated staff
 Brand image
 Philosophy and human resource development

7. Some of the weaknesses of an
organization are:
 Rising cost of operations
 Growing union pressures
 Low level of motivation of staff
 Non-availability of raw material
 Scarcity of capital
 Problem of under utilization of capacity
 Unorganized nature of operations
 Lack of effective coordination
 Feeble structure/poor organization

8. Some of the opportunities of an
organization are:
 Growing population
 Increase in disposable income
 Good monsoon
 Easy availability of money
 Availability of appropriate technology
 Favourable government policies
 Availability of different task environment like
market information, distribution outlets and
media.
 Presence of favourable cultural environment.

9. Some of the threats of an
organization are:
 Rejection by the market
 Recession
 Tough competition
 Political instability
 Fiscal policy resulting into increased taxes,
duties, imports reservations, licensing
 Tight money market
 High cost of raising finance and cost of finance
 Climatic changes
 Changing customer tastes and preferences

10. ADVANTAGES OF SWOT
ANALYSIS
 1. An entrepreneur can know in which field, there is
demand, and can venture into the respective field,
keeping their strengths in mind.
 2. It helps in the development of new technology.
 3. An entrepreneur can make an analysis as to develop a
completely new product, or to just change the existing
product.
 4. There can be improvements brought about in the
process of production.
 5. On the basis of information collected through SWOT
analysis, the goals which the firm wants to achieve in
future can be decided.

11.  6. Short term mission and long term mission of the
organizations can be farmed.
 7. Alternatives can be selected and decided to
exploit opportunities and to face threats in the
environment.
 8. Priorities can be given to different goals and the
courses of action to achieve the goals can be timed.
 9. Plans can be formalized for effective
communication & implementation of plans.
 10. Major functions & sub-functions can be
determined in achieving the objectives of the firm.

12.  11. Expansion of the
range of services
and benefits.
 12. The social,
political, legal,
economic,
technological factors
can be analysed.
 13. An analysis of
the competitor’s
strategies can be
made and their
policies can be
known.

13. Limitations of SWOT
analysis:
 Doesn’t offer alternative decisions
 Doesn’t prioritize issues
 Can produce a lot of information, but not all
of it is useful
 Can generate too many ideas but not help
you choose which one is the best.

15. S W
T
O
To help decision
makers share and
compare ideas.
To bring a clearer
common purpose
and understanding
of factors for
success.
To organize the
important factors
linked to success
and failure in the
business world.
To provide linearity
to the decision
making process
allowing complex
ideas to be
presented
systematically.

16. Job Holder
• When supervisor has issues with
work output
• Assigned to a new job
• New financial year – fresh targets
•Job holder seeks to improve
performance on the job
1
Business Unit
2
• When the team has not met its
targets
• Customer service can be better
• Launching a new business unit to
pursue a new business
• New team leader is appointed
Company
• When revenue, cost & expense
targets are not being achieved
• Market share is declining
• Industry conditions are unfavorable
• Launching a new business venture
3
Who needs SWOTAnalysis?

17. Decision Making
Personal Development Planning
Competitor Evaluation
Product Evaluation
Strategic Planning
Brainstorming Meetings
Workshop Sessions
Product Launch
Changing Jobs
Who needs SWOT Analysis?
SWOT Analysis is also
required for / during...

18. 3. Prepare Action Plans
2. Perform SWOTAnalysis
& Document
1. Analyse Internal &
External Environment
How to conduct SWOTAnalysis?