1. STRATEGIC
MANAGEMENT
S.Y.BMS

2. SWOT ANALYSIS

3. INTRODUCTION
 Many people wrongly assume a SWOT analysis is
only relevant for business, but it can be invaluable
for individuals, organizations and even for team
building.

4. HISTORY OF SWOT ANALYSIS
 This research was conducted at Stanford Research
Institute.
 It took 10 years from 1960 to 1970.
The companies were spending a lot of
money paying the managers and they didn’t see
the dividends from their investments.

5. SEVEN KEYS FINDINGS BY THE RESEARCH
GROUP
 Values
 Appraise
 Motivation
 Search
 Select
 Program
 Act

6. SWOT ANALYSIS
Using your Strength to
Strengths Weakness
overcome Weaknesses,
Opportunities Threats
Using Opportunities to
overcome Threats.

7. THE FOLLOWING DIAGRAM SHOWS HOW A
SWOT ANALYSIS FITS INTO A STRATEGIC
SITUATION ANALYSIS
Situation Analysis
/
Internal Analysis External Analysis
/ /
Strengths Weaknesses Opportunities Threats
|
SWOT Profile

8. STRENGTHS
Strengths are the qualities that enable us to
accomplish the organization’s mission. Strengths
are the beneficial aspects of the organization or
the capabilities of an organization.
For e.g.: Strong brand names
Good reputation among customers
Favorable access to distribution networks

9. WEAKNESSES
Weaknesses are the qualities that prevent us from
accomplishing our mission and achieving our full
potential. These weaknesses deteriorate influences on
the organizational success and growth.
For e.g. :lack of patent protection.
a weak brand name.
poor reputation among customers.
Lack of access to best natural resources.

10. OPPORTUNITIES
Opportunities are presented by the
environment within which our organization operates.
These arise when an organization can take benefit of
conditions in its environment to plan and execute
strategies that enable it to become more profitable.
For e.g.: An unfulfilled customer need.
Arrival of new technologies.
Loosening of regulations.
Removal of international trade barriers.

11. THREATS
Threats arise when conditions in external
environment jeopardize the reliability and
profitability of the organization’s business. They
compound the vulnerability when they relate to
the weaknesses. Threats are uncontrollable.
For e.g.: Shifts in consumers tastes away from the
firm’s products
New regulations.
Increased trade barriers.

12. WHEN CAN WE USE SWOT
ANALYSIS IN OUR
BUSINESS??

13. SIX QUESTIONS TO BE ANSWERED
 What product/s are we selling?
If you are going to start a business or already have a business it is imperative to
know what product or service you are going to be selling.
 What is the process we have in place to sell the products?
Today, there are so many different choices; do you sell it online; offline or both.
If you are selling the product offline, do you need premises to sell from or can
you use your home.
 Who are our customers, who are going to be interested in
our products?
As you develop your business you will see who the core group of people who are
interested in the products being sold. You might develop a product which is targeted
to women in their early 20’s.

14.  What ways can we deliver our products to our
customers?
Delivery of a product is very important, and from a business perspective you need to
know exactly the costs involved for delivery.
 What are the finances needed to create & sell this
product?
This is an area which can make or break a business. You need to know your actual
costs before you start to price a product.
 Who will oversee all the stages from having an
idea, to have enough finance to complete the task?
Finance is an important part of your business, start with the right information and
take time to really look at this aspect of your company

15. SWOT Analysis Sample Template
Strengths Weaknesses
Criteria examples Criteria examples
· Advantages of proposition? · Disadvantages of proposition?
· Capabilities? · Gaps in capabilities?
· Competitive advantages? · Lack of competitive strength?
· Resources, Assets, People? · Reputation, presence and reach?
· Experience, knowledge, data? · Financials?
· Financial reserves, likely returns? · Own known vulnerabilities?
· Marketing - reach, distribution, · Timescales, deadlines and pressures?
awareness? · Cash flow, start-up cash-drain?
· Innovative aspects? · Continuity, supply chain robustness?
· Location and geographical? · Effects on core activities, distraction?
· Price, value, quality? · Reliability of data, plan predictability?
· Accreditations, qualifications, · Morale, commitment, leadership?
certifications? · Accreditations, etc?
· Processes, systems, IT, · Processes and systems, etc?
communications? · Management cover, succession?
· Cultural, attitudinal, behavioral?

16. · Management cover, succession?
· Philosophy and values?
Opportunities Threats
Criteria examples Criteria examples
· Market developments? · Political effects?
· Competitors' vulnerabilities? · Legislative effects?
· Industry or lifestyle trends? · Environmental effects?
· Technology development and · IT developments?
innovation? · Competitor intentions - various?
· Global influences? · Market demand?
· New markets, vertical, horizontal? · New technologies, services, ideas?
· Niche target markets? · Vital contracts and partners?
· Geographical, export, import? · Sustaining internal capabilities?
· New USP? · Obstacles faced?
· Tactics: e.g., surprise, major contracts? · Insurmountable weaknesses?
· Business and product development? · Loss of key staff?
· Information and research? · Sustainable financial backing?
· Partnerships, agencies, distribution? · Economy - home, abroad?
· Volumes, production, economies? · Seasonality, weather effects?
· Seasonal, weather, fashion influences?

17. Subjects of SWOT Analysis
 Business Idea
 A New product
 Buying a company or even an asset of our company
 Buying a partner in a business
 Strength for business

18. Advantages
 It is very simple conceptually, with its four box grid.
 It facilitates understanding .
 It supports strategic thinking.
 It encourages organizations to spot opportunities that
might otherwise be missed.
 It stimulates organizations to anticipate threats and
take action now to minimize their impact.

19. Disadvantages
 There is a danger of finding so much data that it
becomes difficult to understand.
 Finding the necessary data can be time consuming
and difficult.
 The pace of change may increase the difficulty of
anticipating developments.
 Data may be based on assumptions that turn out
to be wrong.

20. EXAMPLES OF SWOT
ANALYSIS

21. Mc Donald's

22. Strengths Weaknesses
Open door policy to the press Inflexible to changes in market trends
Selective supply chain strategy Difficult to find and retain employees
Rigorous food safety standards Drive for achieving shareholder value may
Affordable prices and high quality counter CSR
products Promote unhealthy food
Nutritional information available on Promoted CSR meat imports in error
packaging
Innovative excellence program
Promoting ethical conduct
Profitable
Opportunities Threats
Attractive & flexible employment Fabricated stories about the quality of our
Positive environmental commitments chicken
Higher standards demanded from Unhealthy foods for children
suppliers Health concerns surrounding Beef, Poultry
Corporate Responsibility Committee & Fish
Honest & real brand image Labor exploitation in
CSR at the risk of profit loss
Contributor to global warming
Local fast food restaurants

23. NOKIA

24. Strengths: Weaknesses:
• Largest Selling & Distribution Network. • High price of the product.
• Financially Strong. • Some products are not user friendly.
• Has many profitable Business. • Not targeting promotion towards lower class
• No. 1 selling mobile phones in the world. people.
• Wide range of products for all class. • Very few & scarce service centers in India.
• Re-sell value of Nokia phones are high as • After Sale service is not good.
compared to other company phones.
Opportunities: Threats:
• Wide range of product & features against • Emergence of other mobile companies in the
the competitors. market.
• With ‘ Telecom penetration in India’ they • Threats like cheap phones, new features, new
can increase their sales & market shares. style and type, good after sales service to be
• It has to target right product at right time to taken care of.
gain the most out of the situation. • Make strategies to tackle present & future
problems.
• Growing demand of WLL network can cause
drop in sales for Nokia, as Nokia provides many
less CDMA phones to the customer.

25. CONCLUSION