1. SWOT Analysis
By Wilfredo B. Ruin
SPPS 201 - Strategic Planning: Theory and Practice

2. Challenges for Success
 Market conditions are in constant flux
Change is INEVITABLE.
 Forced the managers/head of organizations to come up with
NEW projects/ ideas/ innovations to compete and keep the essence
of the services’ relevance to modern consumers/stakeholders.
 Success is a factor of proper direction, establishing
goals and developing a STRATEGIC PLAN
Strategic PLANNING must be DONE in the real world
with FULL UNDERSTANDING of WHERE one is coming
from and WHAT the FUTURE may hold.

3. Outline of Presentation
Definition
The SWOT Matrix
Internal Factors
External Factors
Matching and Converting
Uses of SWOT Analysis
Weaknesses of SWOT Analysis

4. Defining SWOT
S - trength, W - eaknesses,
O - pportunities, T - hreaths
Developed by Albert Humphrey, a business analyst at
Stanford Research Institute
An INSTRUMENT in strategy formulation and selection
A Structured Planning Method used to evaluate critical
aspects/factors in a project or in a business venture
Involves specifying the objective of the organization and ANALYSE the
internal and external environmental factors; performed as part of
developing the organizational strategy

5. The SWOT Matrix
Comprised by two distinct but related
elements which may affect the ability of an
organization to be successful.
Internal factors are those that can be
addressed on the organization.
External factors are those over which you
have little influence, or are not in a position to
change, but which have a direct influence on
the success of your organization.

6. The SWOT Matrix
 Often arranged as a 2 by 2
matrices with the lists of
strength and weaknesses in the
first two boxes in the first row
and the lists of opportunities
and threats in the second row.
 Assessment should be systematic
& honest, and by someone
INDEPENDENTLY-MINDED.
Identify what is done WELL
and what is done BADLY
Changes in the Outside must be
considered to assess its impact.

7. Internal Factor: STRENGTH
 RESOURCES, CAPABILITIES /
CHARACTERISTICS that can be used as a basis
for developing a competitive advantage.
Internal parts of the economy or an
organization which are PERFORMING WELL,
and are likely to continue to do so.
Sample:
Existing range of human services and markets, human
resources, management capabilities, service delivery
capabilities, financial performance and position.

8. Internal Factor: WEAKNESS
Internal parts/aspects of the economy/organization
which are NOT PERFORMING WELL currently, and are
likely to continue to do so.
Characteristics that place the team at a disadvantage
relative to others.
Absence of certain strengths may be viewed as a
weakness.
Sample:
Lack of patent protection, a weak brand name, poor reputation
among customers , high cost structure, lack of access to the best
natural resources, lack of access to key distribution channels.

9. External Factor: OPPORTUNITY
Any feature of the external environment
which CREATES POSITIVE POTENTIAL for the
business/organization to achieve its objectives,
in the future, with appropriate intervention or
potentially positive external influences.
Elements that the organization could exploit
to its greater advantage.
Sample:
Technological innovation, new demand, market
growth, demographic change, social or lifestyle
change, government spending programmes

10. External Factor: THREAT
Elements in the environment that could
cause TROUBLE for the
business/organization/project without
appropriate intervention or potentially
negative external influences
Describes how the competition, new technology
or other factors may affect development.
Sample:
Shifts in consumer tastes-away from the firm's products,
emergence of substitute products, new regulations,
increased trade barriers.

11. Utilizing SWOT
Develop a strategy capable of attaining the
mission statements and strategic objectives
that the organization has itself.
Identifying a strategy is a CREATIVE TASK
aimed to identify the various types of activities
the organizations might undertake.
Approches in strat making:
a.Brainstorming, involving staff at
all levels in the organization to
generate ideas and gain staff
commitment
b.Reflecting on the question of
‘what business we are in?’
c. Identifying the successful strategy
of similar organizations with the
aim of copying the strategy
d.Obtaining the opinions from
various external parties about
alternative business strategies.
For the public sector:
 Obtaining or providing a description or audit of the public
or sector and its economy
 Assessing current and future market conditions
 Considering the activities of the public sector
 Agreeing and summarizing the key features of the region

12. Matching and Converting
 Matching is used to
find competitive advantage by
matching the strengths to
opportunities.

13. Matching and Converting
 Converting is to apply conversion
strategies to convert weaknesses
or threats into strengths or
opportunities.
If the threats or weaknesses can’t be
converted a company should try to
MINIMIZE or AVOID them.

14. DEPARTMENT OF AGRICULTURE
Sample:
Mandate:
The Department is the government agency responsible for the promotion of
agricultural development by providing the policy framework, public investments,
and support services needed for domestic and export-oriented business
enterprises. In the fulfillment of this mandate, it shall be the primary concern of the
Department to improve farm income and generate work opportunities for farmers,
fishermen and other rural workers. It shall encourage people's participation in
agricultural development through sectoral representation in agricultural policy-making
bodies so that the policies, plans and programs of the Department are
formulated and executed to satisfy their needs. It shall also use a bottom-up self-reliant
farm system approach that will emphasize social justice, equity, productivity
and sustainability in the use of agricultural resources.

15. DEPARTMENT OF AGRICULTURE
Sample:
Vision:
A modernized smallholder agriculture and fisheries; a
diversified rural economy that is dynamic, technologically
advanced and internationally competitive. Its transformation is
guided by the sound practices of resource sustainability, the
principles of social justice, and a strong private sector
participation.
Mission:
To help and empower the farming and fishing communities and
the private sector to produce enough, accessible and affordable
food for every Filipino and a decent income for all.

16. Sample SWOT- the case of
Strength Weaknesses Opportunities Threats
• Recent approval of the
Rationalization Plan
• Recent restructuring of
the MFOs and
corresponding
Performance Indicators
• Good performance in
terms of utilizing the
appropriated budget
• Finalized mid year
Agriculture and Fisheries
Modernization Plan
• Grant of Performance
Based Bonus
• Majority of human
resources/staff is job-orders
• High turn over rates for
staff who were previously
trained/those already
versed with the
procedures of the office
• Not clear functions of
offices: duplication of
works, offices
unutilized/under
performing offices
• Ranking of individuals for
PBB grant
• Agriculture sector is a
priority of the
government; the country
being an agri community
• Good collaboration with
other NGA under the
AARNR sector; NCI
• Early approval of the GAA
mean early
implementation of
planned projects
• Plan termination of DAR
• Recent bad publicity of
the Secretary; for the
publics’ accusations
against his involvement to
malicious transactions

17. Uses of SWOT Analysis
Aimed to get managers thinking about
everything that could potentially impact
success; failure to consider a key SWOT
could lead to a poor decisions.
Can help to determine which solutions are
most likely to succeed and which are not.
It can inform later/next steps in planning to
achieve the objectives and overall aim.

18. Uses of SWOT Analysis
May help in analyzing to determine
capacity to move forward and
address advancing issues.
Provides information helpful in
matching the firm's resources and
capabilities to the competitive
environment where it operates

19. Weaknesses of SWOT
It may tend to persuade its users to compile
lists rather than to think about actual
important factors in achieving objectives.
It also presents the resulting lists
uncritically and without clear
prioritization
Not all in the lists may contribute to
identifying useful strategies

20. References
 www.rsedp2serbia.eu; Technical Guidance Note 3, The Role of SWOT in Analysis in
Regional Development
 http://www.quickmba.com/strategy/swot/
 Wikipedia, the free encyclopedia
 http://www.iplanner.net/business-financial/online/how-to-articles.aspx?article_id=swot-analysis;
Strategic Planning: What is a SWOT Analysis?, author Armin Laidre
 http://www.free-management-ebooks.com/faqst/swot-05.htm; Matching and
Converting
 http://extension.psu.edu/animals/dairy/hr/tools-for-teams/starting-an-advisory-team/
planning; Strategic Planning With S.W.O.T. Analysis

21. OUR business in life is not to get
ahead of others, but to get ahead of
ourselves -- to break our own records,
to outstrip our yesterday by our
TODAY.
- Stewart B. Johnson
Thank you!