Goals Review: Group Activity

1. Goals Review: Group Activity • Get into groups of 4-5 ( A total of 5 groups) • Your group will be given a business scenario • Come up with 5 Short-Term and 5 Long-Term goals for your given scenario • We will discuss in 10 minutes

2. SWOT Analysis

3. Internal -’ve +’ve External

4. SWOT Analysis • Strategic Planning Method for businesses • Tells the businesses where they need to focus their efforts to improve sales/market share • Businesses look at themselves (internal) • Strengths – things that the business does better than the competition • Ex – customer service, research & development • Weaknesses – things that could be improved on within the business • Poor Reputation, too few sales outlets

5. SWOT Analysis • The business will then look to the outside world (external environment) • Another acronym – PEST • Politics, Economy, Social, Technology • Competition • Are there things that the competition is doing that could a positive or negative effect on our business

6. SWOT Analysis • Opportunities • external factors that could help a business achieve its objectives • Examples: Loosening advertising restrictions, new technologies (Youtube a few years ago) • Threats • External factors that could damage or hinder a businesses’ performance • Examples: A competitors release of a new product, societal trends (healthy food)

7. SWOT Example

8. Nike Strengths • Very competitive company – a healthy dislike for their competition • Research & Technology – are often first to market with new athletic gear technology • Eg. Nike Shocks, Dry fit, etc • Global Brand – recognized world wide • Association with the world’s best atheletes • Michael Jordan, Tiger Woods, Derek Jeter, Ronaldino, Sydney Crosby, LeBron James, Roger Federer

9. Nike Weaknesses • Majority of the companies revenues come from shoes • Company would take a large hit if the industry went into decline • Retail stores try to force a lower price of products • Nike has a lack of its own stores • Reputation • Nike still is experiencing an effect of child labour rumours from the 90’s

10. Nike Threats • Exposed to the risks that go with international trade • The American Dollar, tariffs, etc • Athletic brands (especially shoes) are increasing as the years go on – competition is fierce • Recession • Consumers are searching for the lowest price possible • Nike is a premium brand – so consumers will start shifting towards lower priced brands

11. Nike Opportunities • Nike a fashion brand? • Thus far, Nike has concentrated on purely athletics • Social trends have shown that owning Nike products is making a fashion statement • Emerging Markets • Nike can take advantage of its global brand awareness in growing economies • i.e. China • The health conscious consumer • Can market to consumers – advertise the benefit of exercise

12. Cliffy’s • S • W • O • T

13. Warning • Must be realistic with yourself • Use it for planning – not day to day operations • Make it as specific as possible • Always in relation to your competition • Not other industries • Keep it simple • Be aware: IT`S SUBJECTIVE!

14. Today’s Assignment • You are going to do a SWOT analysis for yourself • Think about yourself as an enterprising person • What do you do well? What are your weaknesses? What chances do you have to be unique? What obsticles do you face in becoming an entrepreneur? • List 2 of each and write 2-3 sentences explaining your choices • (this will help you with your assignment tomorrow)