swot analysis a tool for situational analysis. environmental factors internal to the organization...
TRANSCRIPT
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SWOT Analysis
A tool for situational analysis
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Environmental factors internal to the organization are classified as Strengths (S) and Weakness (W).
External factors are referred to
Opportunities (O) and Threats (T)
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A scan of the internal and the external environment is an important part of
strategic planning process.
An analysis of the strategic environment is referred to as
SWOT/SCOT
Analysis
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RESOURCES
CAPABILITIES
COMPETITIVE ENVIRONMENT
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ENVIRONMENTAL SCAN
INTERNAL ANALYSIS EXTERNAL ANALYSIS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
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STRENGTHS
They are resources and capabilities that can be used as a basis to develop a competitive advantage.
Eg : An access to proprietary know-how Patents
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WEAKNESS
Absence of certain strengths or the flip side of the strength
Eg : A poor reputation High Cost structure
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OPPORTUNITIES
The external environment may reveal certain opportunities for growth and development.
Eg : Loosening of regulations. Removal of international trade
barriers
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THREATS
Changes in external environment may present certain threats
Eg. Shift in consumer taste Emergence of substitute product New regulations Increased trade barries
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SWOT - AnalysisSTRENGTHSSTRENGTHS WEAKNESSWEAKNESS
OPPORTUNITIESOPPORTUNITIES THREATSTHREATS
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SWOT to TOWS Matrix
Strengths-Strengths-MaximizeMaximize
Weakness-Weakness-MinimizeMinimize
Strengths-Strengths-MaximizeMaximize
Opportunities-Opportunities-MaximizeMaximize
Strengths-Strengths-MaximizeMaximize
Threats-Threats-MinimizeMinimize
Weakness-Weakness-MinimizeMinimize
Opportunities-Opportunities-MaximizeMaximize
Weakness-Weakness-MinimizeMinimize
Threats-Threats-MinimizeMinimize
Opportunities-Opportunities-MaximizeMaximize
Threats-Threats-MinimizeMinimize
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S-W Strategies
Identify ways that firm can use its strengths to reduce the impact of its weaknesses.
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S-T Strategies
Identify ways that firm can use its strengths to reduce its vulnerability to external threats
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S-O Strategies :
To pursue opportunities that are a good fit for the company’s strength.
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W-O Strategies
Overcome weakness to pursue opportunities
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W-T Strategies
Establish a defense plan to prevent the firm’s weaknesses from making it highly susceptible to external strengths
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O-T Strategies :
To pursue opportunities that can overcome threats to the company’s.
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Decision
• Micro level, Macro level.
• Structural, Process
• Immediate, Short term, Long term
• Individual, Group, Organizational
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Impact
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Impact
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Impact
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Impact
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Impact
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Impact