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SWOT

Understanding SWOT Analysis

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Objectives

What is SWOT Meaning of Strengths,

Weaknesses, Opportunities and Threats

Effective Use of SWOT analysis Practical Example Review

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So, What is SWOT

SWOT Analysis is a summary of a company’s: Strengths Weaknesses Opportunities Threats

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Strengths Strength Defined: A strength is a core capability of

your business where your business have an advantage over your competitor(s), which your customers value.

Tangible Strengths Plant and equipment Unique or market leading products Cost advantages

Intangible Strengths Strong recognized brands Reputation Patents or proprietary products Managerial experience

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Weaknesses Weakness Defined: A weakness is a core capability of

your business where your competitor(s) have an advantage over your business, which your customers value.

Tangible Weaknesses Old plant and equipment Narrow product line Insufficient financial resources

Intangible Weaknesses Weak or unrecognised brand Poor customer relationships Lack of industry knowledge

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Opportunities Opportunity Defined: An opportunity is an

environmental condition in your macro or industry environments that can improve your organizations competitive position relative to that of your competitors.

Industry Opportunities Expand product range Diversify Vertical integration (forward or backward) Export or increase geographic cover

Macro Opportunities Favourable legislative changes Positive economic outlook

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ThreatsThreat Defined: A threat is a forecast environmental

condition that is out of your control and has the potential to harm your businesses profitability.

Industry Threats Low cost imports Substitute products Market decline

Macro Threats Exchange rates Demographic changes Increasing regulation

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Effective Use of SWOT Analysis

To set goals or objectives of a businessTo determine how much if any change

is required to your current way. Capitalize on strengths Overcome or minimize weaknesses Take advantage of some new

opportunities Respond to the threats

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Practical Example

Please go to the spare page at the back of

your lecture notes and complete a SWOT

analysis for an organization that you

are familiar with.

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Question and Answer Review what is learnt?

What is SWOT Analysis: Analysis is Strength, Weakness, Opportunities & Threats

Practical example (Can we go home and prepare a swot analysis on ourselves to find out what should be our next step in life?)

Why using SWOT? to find strategic objective of an organization

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Thanks for your participation