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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
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