2. S – Strengths
W – Weaknesses
O – Opportunities
T – Threats
SWOT is an acronym for:
Internal Environment
External Environment
3. What is SWOT Analysis?
• A technique that enables a group or individual
to move from everyday problems and
traditional strategies to a fresh perspective.
• A tool which allows any sized group of people
to work together to identify what the next focus
can be for the group.
• A brainstorming session used to analyze
practically anything; a company, a department,
a product or a project.
4. Strength
Any existing or potential resource or capability
within the organization that provides a competitive
advantage in the market.
Examples:
• Strong distribution network
• Intense staff commitment and loyalty
• Increasing profit margin
• A new, innovative product or service.
• Location of your business.
• Quality processes and procedures.
• Any other aspect of your business that adds value to your
product or service.
5. Weakness
Any existing or potential force which could
serve as a barrier to maintaining or
achieving a competitive advantage in the
market.Example:
• Lack of a clear company strategy
• Lack of training opportunities for using a new software
• Lack of marketing expertise.
• Undifferentiated products or services (i.e. in relation to your
competitors).
• Location of your business.
• Poor quality goods or services.
• Damaged reputation.
6. Opportunity
Any existing or potential force in the external
environment that, if properly leveraged,
could provide a competitive advantage.
Example:
• Organization’s geographic location
• New technology
• A developing market such as the Internet.
• Mergers, joint ventures or strategic alliances.
• Moving into new market segments that offer improved profits.
• A new international market.
• A market vacated by an ineffective competitor.
7. Threat
Any existing or potential force in the external
environment that could erode a competitive
advantage.
Example:
• A recession, rising interest rates, or tight credit lines
• A new competitor in your home market.
• Price wars with competitors.
• A competitor has a new, innovative product or service.
• Competitors have superior access to channels of distribution.
• Taxation is introduced on your product or service.
10. A SWOT analysis is useful only when action
plans and strategies are developed from the
results
How to do SWOT Analysis?
Prepare
Action Plans
Analyze Internal
& External
Environment
Perform SWOT
Analysis and
Document
Step 1 Step 2 Step 3
11. Benefits of SWOT Analysis
• Solving problems
• Implementing change
• Developing strategies for achieving the
organization’s objectives and mission
12. Simple rules for successful SWOT analysis.
• Be realistic about the strengths and weaknesses of your
organization when conducting SWOT analysis.
• SWOT analysis should distinguish between where your
organization is today, and where it could be in the future.
• SWOT should always be specific. Avoid grey areas.
• Always apply SWOT in relation to your competition i.e.
better than or worse than your competition.
• Keep your SWOT short and simple. Avoid complexity
and over analysis
• SWOT is subjective.
13. Brainstorming – key ingredient for SWOT
SWOT analysis will be useful if:
• You are thinking outside the box
• Availability of varied perspectives – group
discussion
• Liberty to say your mind
• Willingness to break away from traditional
methods
• Appetite for change
14. Some Brainstorming Rules
No idea is stupid,
everyone’s contribution
is valid and important
You don’t have to
agree with anyone else
Build on the ideas of others-
use initial ideas as a jumping
-off point for more ideas
Always ask questions Seek first to understand
before being understood Have fun!!!Be open-minded
Everyone must
participate
15. Activity: Sample Questions
Strength Weakness
• Which strengths are unique to
the team?
• What are we good at doing?
• What are the things that had
gone well?
• What should be done better in
the future?
• What knowledge do we lack?
• Which skills do we lack?
• What system do we need to
change?
16. Activity: Sample Questions
Opportunities Threats
• What are the key success
enablers?
• Which additional services can
we offer?
• What new market should we
investigate?
• What are some barriers to
progress
• What are the possible
impacts of what competitors
are doing?
• Which regulatory issue might
cause us concern?
19. ASSIGNMENT
CREATE A SWOT ANALYSIS CHOOSING ONE OF THE THREE
EXAMPLES:
1. YOUR UNIVERSITY
2. THE HUMAN RESOURCES DEPARTMENT AT YOUR UNIVERSITY
3. THE HUMAN RESOURCES MANAGER AT YOUR UNIVERSITY
YOU MUST WORK IN GROUPS THAT ARE ASSIGNED IN
BLACKBOARD AND UTILIZE BB TO BRAINSTORM IN THE
GROUP’S DESIGNATED DISCUSSION AREAS THAT ARE
CREATED FOR THIS PROJECT
ASSIGNMENT DUE IN TWO WEEKS AND MUST BE SUBMITTED
IN WORD FORMAT AS A SWOT ANALYSIS TABLE
ONE GROUP MEMBER MUST SEND TO INSTRUCTOR’S E-MAIL
ADDRESS@YOURUNIV.EDU
