PRESENTER: Deepti KothariAd. No.-2013HS1MDeptt. of Extension Education and Communication Management,I.C. College of Home Science, CCSHAU, Hisar

ANALYSIS

CONTENTS COVERED:- • Origin and history• Aim of SWOT analysis• Introduction- SWOT• Points to be considered• How to do it??• Applications and advantages• Limitations and pitfalls of SWOT • Tips to conduct SWOT• Conclusion

SWOTAnalysis

Opportunity

Threats

Strength

Weakness

INTERNAL

FACTORS

EXTERNAL

FACTORS

History and Origin The origins of the SWOT analysis technique is credited

by Albert Humphrey, who led a led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies.

The goal was to identify why corporate planning failed.

Humphrey and the original research team used the categories “What is good in the present is Satisfactory, good in the future is an Opportunity; bad in the present is a Fault and bad in the future is a Threat.”

Cntd…SWOT Analysis was earlier known as SOFT Analysis.

It was funded by fortune 500 company, and took 9 years to develop.

In 1964 Urick and Orr at a conference changed the Fault of F to W for Weakness.

The SWOT method was originally developed for business and industry, but it is equally useful in other arenas associated and dealing with personal growth.

SWOT A process generates information that is helpful in

matching an organization or group’s goals, programs, and capacities to the social environment in which it operates.

• The SWOT analysis is great for developing an understanding of an organization or situation and decision-making for all sorts of situations in business, organizations and for individuals.

• The SWOT analysis approach headings provide a good framework for reviewing strategy, position and direction of a company, product, project or person (career). 

Aim of SWOT analysisExplore possibilities for new efforts or solutions to

problems and thus offer helpful perspectives at any stage of an effort

Make decisions about the best path for your initiative. Identifying your opportunities for success in context of threats to success can clarify directions and choices.

Determine where change is possible. If you are at a point of making a decision, an inventory of your strengths and weaknesses can reveal priorities as well as possibilities.

Adjust and refine plans mid-course. A new opportunity might open wider avenues, while a new threat could close a path that once existed.

Offers simple way of communicating and is an excellent way to organize gathered information from studies /surveys.

Cntd… SWOT analysis provides information that is helpful in matching

the firm's resources and capabilities to the competitive environment in which it operates.

Used as framework for organizing and using data and information gained from situation analysis of internal and external environment.

To provide linearity to the decision making process allowing complex ideas to be presented systematically.

To organize the important factors linked to success and failure in the business world.

To bring a clearer common purpose and understanding of factors for success.

To help decision makers share and compare ideas.

STRENGTH- What you do very well – maybe better than anyone else

• Positive tangible and intangible attributes, internal to an organization.

• They are within the organization’s control.

• A good first step before a more in-depth analysis or good summary of detailed findings.

S

Examples of strengthsAbundant financial resources, Well-known brand name, Economies of scale, Lower costs [raw materials or

processes], Superior management talent, Better marketing skills, Good distribution skills, Committed employees.

WEAKNESS- What you lack in or what you don’t do very well

• Factors that are within an organization’s control that weaken ability to attain desired goal and standards.

• Places organization at disadvantage• Detracts and influences growth• Are controllable and should be

minimized and eliminated.

W

Examples of weaknessesLimited financial resources, Weak spending on R & D, Very narrow product line, Limited distribution, Higher costs, Out-of-date products /

technology, Weak market image, Poor marketing skills, Limited management skills, Under-trained employees.

OPPORTUNITY - What is it that you could do – but aren’t?

O• Chances to make greater profit• External attractive factors that

represent the reason for an organization to exist and develop.

• Arise when organization takes benefit of environmental condition to plan and execute.

Examples of opportunities

Rapid market growth, Rival firms are complacent, Changing customer

needs/tastes, New uses for product

discovered, Economic boom, Government deregulation, Sales decline for a substitute

product .

THREAT- Environmental elements causing trouble to achieve objective or goal.

T• External factors, beyond an

organization’s control, which could place the organization mission or operation at risk.

• The organization may benefit by having contingency plans to address them.

• Classify them by “seriousness” & “probability of occurrence”.

Examples of threatsRapid market growth, Rival firms are complacent, Changing customer

needs/tastes, New uses for product

discovered, Economic boom, Government deregulation, Sales decline for a substitute

product .

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!

Points to be considered in SWOT analysisHow can we Use each Strength?

How can we Stop each Weakness?

How can we use each Opportunity?

How can we Defend against each Threat?

Analyze internal and external environment

Perform SWOT and DOCUMENT

Prepare ACTION PLAN1

.

2.3.

How to conduct SWOT Analysis?

1. Analyse Internal & External Environment

SWOT ANALYSIS MATRIX MODEL

• FUNDAMENTAL IDEA- The concept of determining strengths, weaknesses, threats, and opportunities

• Graphical representation of the SWOT framework.

1. SO strategies—use a firm’s internal strengths to take advantage of external opportunities. (LEVERAGE)2. WO strategies—are aimed at improving internal weaknesses by taking advantage of external opportunities. (CONSTRAINTS)3. ST strategies—use a firm’s strengths to avoid or reduce the impact of external threats.(VULNERABILITIES)4. WT strategies—are defensive tactics directed at reducing internal weaknesses and avoiding external threats. (PROBLEMS)

2. Perform SWOT Analysis & DocumentEstablish the objectives - Purpose of conducting a SWOT may be wide /

narrow, general / specific.Select contributors - Expert opinion may be required for SWOTAllocate research & information gathering tasks - Background

preparation can be carried out in two stages – Exploratory and Detailed. Information on Strengths & Weaknesses should focus on the internal factors.

Create a workshop environment - Encourage an atmosphere conducive to the free flow of information.

Evaluate listed ideas against Objectives - With the lists compiled, sort and group facts and ideas in relation to the objectives.

List Strengths, Weaknesses, Opportunities, & threatsCarry your findings forward - Make sure that the SWOT analysis is used

in subsequent planning. Revisit your findings at suitable time intervals.

3. Prepare Action PlanOnce the SWOT analysis has been completed, mark each point with:

Things that MUST be addressed immediately

Things that can be handled now

Things that should be researched further

Things that should be planned for the future

Applications of SWOTA SWOT analysis can be used for: Workshop sessions Brainstorm meetings Problem solving Planning Product evaluation Competitor evaluation Personal Development Planning Decision Making 

Advantages of SWOTIn social work practice framework is beneficial

because it helps organizations decide whether or not an objective is obtainable and therefore enables organizations to set achievable goals, objectives, and steps to further the social change or community development effort.

In organisation it enables organizers to take visions and produce practical and efficient outcomes in order to effect long-lasting change, and it helps organizations gather meaningful information in order to maximize their potential.

In a process regards the consideration of key organizational priorities, such as gender and cultural diversity, and fund-raising objectives.

Pitfalls of SWOT analysis• May cause organizations to view circumstances as very simple due to which certain key strategic contact may be overlooked.

• Categorizing aspects as strengths, weaknesses, opportunities & threats might be very subjective as there is great degree of uncertainty in market.

• To be effective, SWOT needs to be conducted regularly. The pace of change makes it difficult to anticipate developments.

• The data used in the analysis may be based on assumptions that subsequently prove to be unfounded [good and bad].

• It lacks detailed structure, so key elements may get missed.

Limitations of SWOTSWOT can be misused as a technique, as it can be quickly

designed without critical thought leading to a misrepresentation of SWOT, within an organization's internal and external surroundings. 

Development of a swot analysis simply to defend previously decided goals and objectives. Leads to:-

Limitations on brainstorming possibilities and "real" identification of barriers.

Also places the organization’s interest above the well being of the community.

The design of a swot analysis by one or two community workers is limiting to the realities of the forces specifically external factors, and devalues the possible contributions of community members.

Tips of conducting SWOT analysisDO’S Be analytical and specific.

Record all thoughts and ideas.

Be selective in the final evaluation.

Choose the right people for the

exercise.

Choose a suitable SWOT leader or

facilitator.

Think out of the box

Be open to change

DON’T S

х Try to disguise weaknesses.

х Merely list errors and mistakes.

х Lose sight of external influences

and trends.

х Allow the SWOT to become a

blame-laying exercise.

х Ignore the outcomes at later stages

of the planning process.

Conclusion A SWOT analysis identifies your S, W, O and T to assist

you in making strategic plans and decisions.

SWOT is a simple yet comprehensive way of assessing the positive and negative forces within and without your organization, so you can be better prepared to act effectively

The SWOT analysis prompts you to move in a balanced way throughout your program.

A SWOT analysis will be most helpful if used to support the vision and mission of institution.

BRAINSTORMSITUATION: Opening of a coaching

institute in HAU CampusStrengths???Weaknesses???Opportunities???Threats???