Welcome

The Value of SWOT

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www.CorporateStrategiesGroup.com

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Introduction

Facilitator – Chris Reardon; Managing Director Corporate Strategies Group

Increase Growth & Profit

Agenda Time Sensitive

15-20 minutes 10 + minutes Q&A Value - Meat & potatoes

Agenda Detail

What is SWOT SWOT Parts SWOT Detail SWOT Process SWOT Mistakes Benefit of SWOT Summary Q&A

Why SWOT

“I will fire any manager who could not make a

decision within 20 minutes after having all

the facts.”

Ted Turner is credited with saying…

Why SWOT …

Make an informed Business Decision as a manager

A business operating without a written and public plan operates in ANARCHY!

The Three Foot JourneyDetailed information

---Simplified implementation

The SWOT Catalyst

Stagnation Rapid Expansion Missed Targets Eroding Market Share Reduced Productivity Industry Shift Expansion When you just don’t know..

What SWOT is

A part of the planning process (Strategic Plan)

PEST(le) Value Chain Analysis

Strategic Analysis is:…the process of conducting research on the business itself and the environment the business operates to gather information, for the use in the design of a strategy of the best and highest performance of the business.

What SWOT is not

Business Plan Marketing Plan Funding Proposal

Detractors

HR Marketing Accountants

SWOT Parts

Strategic Assets & Strategic Liabilities Internal & External

Marketing Markets Sales Management/Operations Leadership/Communication Financial Resources/Assets

The SWOT Process

Planning Discovery Analysis Development IMPLEMENTATION

Upstream & Downstream

Link to Strategy

StrategicAnalysis

StrategicChoice

StrategicImplementation

StrategicControl

The Four Step Strategic Planning Process

SWOT

Your SWOT Analysis will summarise your Strategic Analysis

The SWOT Process

Cross check & reference questions Benchmarking Compare to Mission Vision

SWOT Common Mistakes

NOT involving all Stakeholders NOT seeing staff as SWOT asset/resource

Or over time Not using it as a living document

(summarized) Objectivity

Leading questions Preconceived outcomes Perceived retribution

SWOT Common Mistakes…

Not weighting the data Lack of Communication of intent

and results

Accept the answers & conclusions!!!

Implementation

Create a simple goals definitions sheet

ANDCreate a desk report (DDR) with performance objectives

ANDCreate a desk report (DDR) of

milestones with timelines.

Summary/Benefits

A Mckinsy survey reported that over 76% surveyed companies had a formal strategic planning process. Among those claiming to have one, more than half said the process played a significant role in growth and profit success.

Have the facts to make an informed business decision

A game plan Predictability Control

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 i.e. you passed the better than your competitors test.

You will find your strengths only when completing your internal analysis.

Strengths

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 i.e. you failed the better than your competitors test.

You will find your weaknesses only when completing your internal analysis

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.

You will find your opportunities when completing your industry environment analysis and your macro environment analysis

Threats

Threat Defined: A threat is a forecast environmental condition that is out of your control and has the potential to harm your businesses profitability.

You will find your threats when completing your industry environment analysis and your macro environment analysis

SWOT ANALYSIS

STRENGTHS

KFC continued to dominate the Chicken Segment, with sales of 4.4 billion in 1999.

Despite gain by Boston Market and Chick-fill A, KFC customer base remained loyal to the KFC brand because of its unique taste.

KFC has continued to dominate the dinner and take out segment of the Industry.

Strong trademarks recipes.

Ranks highest among all chicken restaurant chains for its convenience and menu variety.

Generate $1B each year

WEAKNESSES

KFC was loosing market share as other Chicken chain increased sales at a faster rate.

KFC share of Chicken Segment sales fell from 71 percent 1989, to less than 56 percent in 1999, a 10-years drop of 15 percent.

KFC leadership in U.S market was so extensive that it had fewer opportunities to expand its U.S restaurant base, which was only growing at about 1 percent per year.

Failed to rank in top 20 in growth in 2000.

Lack of knowledge about their customers.

Question of over franchising leads to loss of control and quality.

Lack of focus on R&D.

OPPORTUNITIES

McDonald’s accounted for 35 percent of the Sandwich Segment while Burger King ran a distant Second, with a 16 percent market share.

Per store sale at Burger King remained flat and Hardee’s per store sale declined by 10 percent.

In family Segment, Friend’s and Shoney’s were forced to shut down restaurants because of declining profits.

Within the Pizza Segment, Pizza Hat and Little Caesars Closed underperforming restaurants.

Boston Market was a new restaurant chain that emphasized roasted rather than fried chicken.

In 1999, Boston Market soon entered Bankruptcy proceedings.

Church’s broadened its menu to include buffalo chicken wings, macaroni and cheese, beans and rice and collard greens.

Baby boomers aged 35 to 50 constituted the largest customer group for fast-food restaurants.

THREATS

McDonald’s with sales of more than 19 billion in 1999, accounted for 15 percent of the sales of the nation’s top 100 restaurant chains.McDonald’s generated per store sale 1.5 million per year.Much of the growth in dinner houses came from new unit construction in suburban market and small town.In Family Segment, Steak n Shake and Cracker Barrel expend its restaurant by more than 10 percent.KFC nearest competitor Popeye, ran a distant second with sales of 1.0 billion.In early 1990s’ many industry analysts predict that Boston Market would challenge KFC for market leadership.Boston market and Chick-fil-A market share gains were achieved primarily by taking customer away from KFC.Popeye’s replaced Boston market as the second largest chicken chain in 1999.