1. Chapter No: 08

2.  The creation of SWOT analysis is usually
credited to Albert S. Humphrey who led a
research project based upon the United
States' Fortune 500 in the 1960s through
1970s at Stanford University. This is, however,
a matter of debate.

3.  The SWOT analysis is prepared to know the strengths and
weaknesses (internal capabilities of the company) and
opportunities and threats (external parameters that are affecting
the company). It contains great importance in your professional
business plan. It is used to analyze the core areas on which the
strategy of business depends; weaknesses your company have;
opportunities that you have in market, in order to expand your
business; and the external threats of which the company has to be
aware.
Every business has competitors, so avoid the lines such as, "We
have no competitors" or "We are the best." These lines will create
negative impact on your business. Use of bullet points is the best
way to begin. Avoid adding irrelevant and unrealistic material.

6.  The positive attributes of your organization is
described under the category “Strengths.”
Strengths are within your control. It contains:
• What do you do well?
• What resources do you have?
• How unique is your product as compare to your
competitors?
• Positive attributes of your employees
•Your tangible assets: available credit, capital,
equipment, etc. within the business.

7.  Gather all the weaknesses that your business has with
the organization. It is also within your control. It tells
you which area of your organization you want to
improve. It might include:
• Lack of expertise
• Lack of technology
• Limited resources
• Poor location of your business
• Inferior service offerings
These are the things you can improve in order to get
superiority over your competitors.

8.  This part of SWOT analysis tells you where you
exist in your market, what opportunities you
have in order to expand your business and how
these opportunities provide you benefit. It may
be the result of:
• Market growth
• Lifestyle changes
• Positive market perceptions about your
business
• Changing trends of business industry, etc.

9.  Threats are also external but you have no control over
them. You must be well-aware of the changing trends
of your organization as well as of your market in order
to control threats; it may include:
• Competition
• Intolerable price increases by suppliers
• Governmental regulation
• Economic downturns
• Devastating media or press coverage
• A shift in consumer behavior that reduces your sales

10. I call SWOT analysis the Swiss army knife of business
planning tools because it can be used for so many
different planning purposes. For small businesses, for
instance, SWOT analysis can be used for:
 a nice quick way to examine a small business idea
 as a springboard for annual business planning
 as the basis of a marketing action plan
 as a starting point for business contingency planning
 as tool for involving staff/employees in business
planning – e.g. solving particular problems or
achieving particular business goals
 as a self-evaluation tool for how you're doing
managing staff or running your business

11.  Do strengths open any opportunities?
 How can we convert weaknesses to
strengths?
 What do we have to do to use
opportunities?
 How do we best neutralize threats?

12. Favorable Unfavorable
Strength: Weakness:
•Strong global operations •Increase instance of
Internal with diversify revenue base product recall hampering
•Research and Development brand Equity.
capabilities
Opportunities: Threats:
External •Transaction to nutrition •Macro economy factors.
and well being company. •Compliance issue resulting
•Focus on developing and in penalty payments.
emerging economy.
•Booming out of home
eating company.

13.  http://www.scribd.com/doc/30768475/Swot-
analysis-Nestle-Company