4.Swot+Tows+Analysis

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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 externalenvironment is an important part of

    strategic planning process.

    An analysis of the strategic

    environment is referred to asSWOT/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 capabilitiesthat can be used as a basis todevelop 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 - Analysis

    STRENGTHS WEAKNESS

    OPPORTUNITIES THREATS

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    SWOT to TOWS Matrix

    Strengths-

    Maximize

    Weakness-

    Minimize

    Strengths-

    Maximize

    Opportunities-

    Maximize

    Strengths-Maximize

    Threats-Minimize

    Weakness-

    Minimize

    Opportunities-

    Maximize

    Weakness-Minimize Threats-Minimize

    Opportunities-

    Maximize

    Threats-

    Minimize

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    S-W Strategies

    Identify ways that firm can useits 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 companysstrength.

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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 firms weaknessesfrom making it highly susceptible

    to external strengths

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    O-T Strategies :

    To pursue opportunities that can

    overcome threats to thecompanys.

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    Decision

    Micro level, Macro level.

    Structural, Process

    Immediate, Short term, Long term Individual, Group, Organizational

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    Impact

    Macro

    Micro

    Organization

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    Impact

    Structure

    Process

    Organization

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    Impact

    Impact

    Immediate

    Long

    Strategic

    Short

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    Impact

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    Impact

    Impact

    On

    OtherStakeholders

    Competitors

    Environment

    Internal

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    Impact

    Internal

    Employees

    Workers

    Managers

    Departments/Process