1. SWOT Analysis

2. SWOT Analysis
 A scan of the internal and the external environment
is an important part of strategic planning process.
 SWOT Analysis is an important tool which helps a
person/ institution identify, in a systematic way, its
internal strengths and weaknesses
 Helps match its strengths/ weakness with
Opportunities / Threats

3. ENVIRONMENTAL SCAN
INTERNAL ANALYSIS EXTERNAL ANALYSIS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS

4. STRENGTHS
 They are resources and capabilities that can be
used as a basis to develop a competitive advantage
 It is something that the company does well or a
characteristic that enhances its competitiveness

5. Strengths
 Valuable competencies or know how
 Valuable physical assets
 Valuable human assets
 Valuable organizational assets
 Valuable intangible assets
 Important competitive capabilities
 Alliances with capable partners

6. WEAKNESS
 Absence of certain strengths or the flip side of the
strength
 It is something that the company lacks, or does
poorly or a condition putting it at disadvantage

7. Weakness
 No clear strategic decisions
 Obsolete practices
 Weak R n D

8. Weaknesses - Continued
 In some cases, a weakness may be the flip side of
a strength.
 For example, a firm has a large amount of
manufacturing capacity.
 While this capacity may be considered a strength
that competitors do not share, it also may be a
considered a weakness if the large investment in
manufacturing capacity prevents the firm from
reacting quickly to changes in the strategic
environment.

9. OPPORTUNITIES
 The external environment may reveal certain
opportunities for growth and development.
Eg :
 Loosening of regulations.
 Removal of international trade barriers

10. Opportunities
 Serving additional groups
 Expanding to new geographic areas
 Expanding products
 Alliances or acquisitioons
 New technologies

11. THREATS
Changes in external environment may present
certain threats
Eg.
 Shift in consumer taste
 Emergence of substitute product
 New regulations
 Increased trade barriers

12.  Entry of new competitors
 Substitute produvts
 Slowing market growth
 Shifts in political conditions
 Reduced demands

13. SWOT / TOWS Matrix
TOWS
Analysis
Strengths Weaknesses
Opportunities S-O
Strategies
W-O
Strategies
Threats S-T
Strategies
W-T
Strategies

14. SWOT / TOWS Matrix
 S-O strategies pursue opportunities that fit well
the company's strengths.
 W-O strategies overcome weaknesses to pursue
opportunities.
 S-T strategies identify ways that the firm can
use its strengths to reduce its vulnerability to
external threats.
 W-T strategies make a defensive plan to prevent
the firm's weaknesses from making it susceptible
to external threats.

15. SWOT Interactions