SWOT AnalysisSWOT AnalysisAn examination of an enterprise’s An examination of an enterprise’s internal;internal; SStrengths -trengths -attributes of the attributes of the organization that are helpful to achieving organization that are helpful to achieving the objectives. the objectives. WWeaknesses -eaknesses -attributes of the attributes of the organization that are harmful to achieving organization that are harmful to achieving the objectives. the objectives. OOpportunities -pportunities -external conditions that external conditions that are helpful to achieving the objectives. are helpful to achieving the objectives. TThreats - hreats - external conditions which external conditions which could do damage to the business's could do damage to the business's performanceperformance.. In its external environmentIn its external environment

This means taking a long hard This means taking a long hard look at a number of factors;look at a number of factors;

Who are our customers and what do Who are our customers and what do they want?they want?

How strong are our relationships with How strong are our relationships with them?them?

What is the growth potential and What is the growth potential and quality of our products/services?quality of our products/services?

How do we rate our current employees How do we rate our current employees skills, flexibility and potential?skills, flexibility and potential?

This means taking a long hard This means taking a long hard look at a number of factors (cont);look at a number of factors (cont);

In what condition is our equipment and In what condition is our equipment and operating systems in regard to age and future operating systems in regard to age and future performance and in relation to our competitors?performance and in relation to our competitors?

How stable is our financial situation, and our How stable is our financial situation, and our relationship with our debtors and creditors?relationship with our debtors and creditors?

What is our external environment like in What is our external environment like in regards to regards to

• TechnologicalTechnological• PoliticalPolitical• Consumer trendsConsumer trends

A SWOT carried out by an A SWOT carried out by an individual manager could look like individual manager could look like

this:this: StrengthsStrengths WeaknessesWeaknesses

•Enthusiasm, Enthusiasm, •energy,energy,• imagination, imagination, •expertise in subject expertise in subject area,area,•excellent track excellent track record in record in specialized area.specialized area.

•Not good at achieving Not good at achieving results through results through undirected use of undirected use of personal energies,personal energies,• trouble at expressing trouble at expressing themselves orally and on themselves orally and on paper – may have ideas paper – may have ideas but these come over as but these come over as incoherent, incoherent, •management experience management experience and expertise limitedand expertise limited

OpportunitiesOpportunities Threats Threats •More general More general management management •opportunities opportunities requiring development requiring development of new managers of new managers

•De-centralisation De-centralisation having the effect of having the effect of removing departments removing departments where the individual is where the individual is employed employed •eliminating middle eliminating middle management layers to management layers to form flatter structure form flatter structure of organization of organization

Pest analysisPest analysis PPoliticalolitical factors include areas such as tax factors include areas such as tax

policy, employment laws, environmental policy, employment laws, environmental regulations, trade restrictions and tariffs and regulations, trade restrictions and tariffs and political stability. political stability.

EEconomic conomic factors are factors are economic growtheconomic growth, , interest ratesinterest rates, , exchange ratesexchange rates and and inflation rateinflation rate. .

SSocialocial factors often look at the cultural aspects factors often look at the cultural aspects and include health consciousness, population and include health consciousness, population growth rate, age distribution, career attitudes growth rate, age distribution, career attitudes and emphasis on safety. and emphasis on safety.

TTechnologicalechnological factors include ecological and factors include ecological and environmental aspects and can determine environmental aspects and can determine barriers to entrybarriers to entry, minimum efficient production , minimum efficient production level and influence level and influence