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A Lake Runs Through It … Or Is It a River? Or Something Else?

A Lake Runs Through It … Or Is It a River? Or Something Else?. The SWOT Analysis. The SWOT Analysis. SWOT is an acronym for strengths, weaknesses, opportunities, and threats SWOT can be divided into controllable (internal) and non-controllable (external) variables

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A Lake Runs Through It … Or Is It a River? Or Something Else?

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  1. A Lake Runs Through It …Or Is It a River? Or Something Else? The SWOT Analysis

  2. The SWOT Analysis • SWOT is an acronym for strengths, weaknesses, opportunities, and threats • SWOT can be divided into controllable (internal) and non-controllable (external) variables • Controlled variables are strengths or weaknesses • Non-controllable variables are opportunities or threats

  3. Controllable (Internal) Variables • Price • Product (may be tangible product or service) • Promotion (includes selling and advertising) • Place (includes distribution system/network) • Employees (functional departments) • Competitive advantage (patients, trademarks, supplier relations)

  4. Non-controllable (external) Variables • Competitive environment: • Identify any product/service that may be a substitution • Economic trends: • Changes in personal income • Changing consumer spending patterns

  5. Non-controllable (external) Variables • Demographic trends: • Changing population characteristics: age structure of U.S. population • Changing American family: fewer children, single-parent households • Geographic shifts in population • Better educated population • Increasing ethnic and racial diversity

  6. Non-controllable (external) Variables • Natural environment: • Shortages of raw materials • Increased cost of energy • Increased levels of pollution • Government intervention in natural resource management

  7. Non-controllable (external) Variables • Technological trends: • Faster pace of technological change • Presents unlimited opportunities • High research and development budgets • Concentration on minor improvements • Increasing government regulation

  8. Non-controllable (external) Variables • Political trends: • Legislation regulating business • Changing government agency enforcement • Growth of public interest groups • Publics: • Financial publics (institutions providing capital) • Media publics (positive or negative publicity)

  9. Non-controllable (external) Variables • Cultural trends: • Persistence of cultural values • Existence of subcultures • Shifts in secondary cultural values

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