SWOT ANALYSIS

Matthew GurtoChristopher AndersonRobert WilliamsKathryn Connelly

22 October 2007

Agenda Origins Importance Rules Analytical Process

Strengths Weaknesses Opportunities Threats

Limitations Class Exercise

Early Origins Of SWOT

Sun-Tzu

2,000 Years Ago

“Know Your Enemy, Know Yourself, And Your Victory Will Not Be Threatened.”

Sun Tzu

Picture Source: http://www.martinfrost.ws/htmlfiles/suntzu.jpg

Modern Origins Of SWOT Analysis

Stanford Research Institute: 1960-1970 Albert Humphrey Funded By Fortune 500 Companies Goal: Why Corporate Planning Failed Case Study:

1100 Companies And Organizations Interviewed 250-Item Questionnaire 5,000+ Executives Participated

Creation Of SWOT Analysis

Importance

Foundation For Nuanced And Insightful Decision Making

Applied To Organizational Planning And Strategy Development

Maximizes Potential Strengths And Opportunities

Minimizes Weaknesses And Threats

Rules For Application Eliminate Biases

Although, It IS Subjective

Distinguish Between Present Status And Future

Consider Competitive Or Influencing Factors

Competing Businesses

Picture Source: http://www.bhmag.fr/images/Coke%20vs.%20Pepsi.jpg

SWOT: An Analytical Process

Align Internal With External

Internal = Strengths And Weaknesses

External = Opportunities And Threats

Consider Positive And Negative Effects

Alignment Of Contributing Factors

Picture Source: http://www.ambire.ca/images/swot.jpg

Strengths

Measurement Of Superior Capabilities Development Of A Competitive Advantage

Strategies Skills/Competencies Knowledge Resources

Accept Others Perspectives Walk In Different Shoes

Picture Source: http://www.thom.org/photos/shoe.jpg

Strengths Not A Strength If:

Shared With A Competitor

Not A Unique Characteristic

Considerations: Useful? Innovative? Significance? Gain Or Loss? Valuable? Reliable?

Strengths- Business Questions:

What Advantages Does Your Company Have Over The Competition?

What Unique Or Lowest-Cost Resources Do You Have Access To?

What Are Your Assets Or Core Competencies?

Where Are You Making Money?

What Experience Does Your Business Have?

Examples Of Specific Strengths: Superior Product Performance

Durability, Quality, Reliability New Innovations And Patented Products

Efficient Employee/Manufacturing Capacity Development Of Brand Or Reputation Strong Marketing And Sales Strategy Availability And Location Of Products Or

Services

Weaknesses Measurement Of Attributes That Deter

Organization From Achieving Objectives

Internally Focused Both Internal External Viewpoints

Both Short-Term And Long-Term

Weaknesses Sometimes = Flip Side of Strengths

Weaknesses Questions To Ask:

What Could The Organization Improve? What Should The Organization Avoid? What Are Customers And Competitors Likely

To See As Weaknesses? (External Viewpoint) What factors lose an organization sales or

business?

Possible Types Of Weaknesses: Lack Of Patent Protection Poor Reputation Among Customers High Cost Structure Lack Of Access To The Best Natural Resources Lack Of Access To Key Distribution Channels Lack Of Marketing Expertise Undifferentiated Products Or Services (i.e. in relation

to your competitors). Location Of Your Business. Poor Quality Of Goods Or Services

Weaknesses - Business

Opportunities

Examine Strengths And Weaknesses Externally And Positively Focused

New Situations/Circumstances Favorable To Prospective Situations

Supports Product Demand Or Service Allows Company To Enhance Its Position

Opportunities Weaknesses for a market competitor are

often opportunities for others Eliminate weaknesses and capitalize

strengthsStrengths = opportunity?

Factors which create opportunities:LegalPoliticalTechnologicalCultural

Opportunities- Business Mergers, Joint Ventures Or Strategic Alliances New Attractive Market Segments

International Markets

Loosening Of Regulations Capitalize On Competitors' Vulnerabilities Industry Or Lifestyle Trends Technology Development, Changes And

Innovation Global Influences

Threats A Warning Of Impending Danger

Speculative Assessment Worst Case Scenarios

External No Control Proactively Develop Contingency Plans

Threats Classify Types/Seriousness Of Threats

Probability Of Occurring

Recognizing Competition …Always A Threat

Ability To Forecast Change

Threats- Business

Competitor’s Status Market Demand New Legislation Environmental Factors Negative Publicity Employee Dissatisfaction Technological Innovations Relationship With Resource Suppliers

Picture Source: http://twiginternational.com/images/ThreatsDiagram.gif

Limitations Identifies, Does Not Create

Strategy And Objectives

Remember… It IS Subjective

Represents Specific Point In Time

Do Not Overextend Its Application

Class Application

Picture Source: http://www.mciis.org/index.php

Sources http://www.businessballs.com/swotanalysisfreetemplate.htm http://www.mindtools.com/pages/article/newTMC_05.htm http://www.valuebasedmanagement.net/methods_swot_analysis.html http://www.bplans.com/dp/article.cfm/148 http://business.nmsu.edu/~dboje/sbc/pages/page3.html#strengths http://www.12manage.com/methods_swot_analysis.html http://entrepreneurs.about.com/od/businessplan/a/swotanalysis.htm http://www.mciis.org/index.php http://www.quickmba.com/strategy/swot/ http://marketingteacher.com/Lessons/lesson_swot.htm http://www.tutor2u.net/business/strategy/SWOT_analysis.htm http://www.stfrancis.edu/ba/ghkickul/stuwebs/btopics/works/swot.htm http://www.mindtools.com/pages/article/newTMC_05_1.htm http://www.1000ventures.com/business_guide/crosscuttings/swot_analysis.html

Thank You

For Questions, Comments, Or A Copy Of The Slides:

Matthew Gurto: mgurto28@mercyhurst.edu Christopher Anderson: cander47@mercyhurst.edu Robert Williams: rwilli45@mercyhurst.edu Kathryn Connelly: kconne58@mercyhurst.edu