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SWOT Analysis

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  1. SWOT Analysis • Acronym for • Strengths • Weaknesses • Opportunities • Threats • An important strategic planning tool. • Provides managers with a critical snapshot of the organization’s internal and external environments.

  2. Section Headings The format for written SWOT analysis: 1. Internal Environment (resources and relationships) • Strengths • Weaknesses 2. External Environment (six factors) • Opportunities • Threats 3. Implications • Positive • Negative • Bulleted lists OK • Bulleted lists OK • Paragraph format

  3. (S & W) Internal Environment Company Resources: • Capital (cash and liquid assets) • People (employees, management) • Brand / Image, Reputation • Physical Resources • Competencies • Corporate Culture

  4. (S & W) Internal Environment(cont.) Relationships with… • Suppliers / Distributors • Customers • Shareholders • Competitors • “Publics” • Financial Institutions • Government • Media • Interest Groups • Employees (internal)

  5. (O & T) External Environment • Economic Environment • Biz Cycles, Inflation, Unemployment • Socio-Cultural Environment • Cross-cultural aspects, Demography • Political-Legal Environment • Government regulations, Agencies • Competitive Environment • Direct or Indirect Competitors • Natural Environment • Climate, seasonal cycles, etc. • Technological Environment

  6. SWOT Implications 1) How can the company capitalize on internal strengths that correlate with opportunities in the marketplace? 2) What are some ways to minimize weaknesses… especially if they may be exacerbated by outside threats? NOTE : Your conclusions here should lead naturally to objectives and strategies. Back to MGT slides