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Lim Sei cK.  SWOT analysis is a method for analyzing a business, its resources, and its environment.

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Presentation on theme: "Lim Sei cK.  SWOT analysis is a method for analyzing a business, its resources, and its environment."— Presentation transcript:

1 Lim Sei cK

2  SWOT analysis is a method for analyzing a business, its resources, and its environment.

3  Internal strengths  Internal weaknesses  Opportunities in the external environment  Threats in the external environment

4  What the business does better than the competition  What competitors do better than the business  Whether the business is making the most of the opportunities available  How a business should respond to changes in its external environment

5 POSITIVE FACTORSNEGATIVE FACTORS INTERNAL FACTORSStrengthsWeaknesses EXTERNAL FACTORSOpportunitiesThreats

6  Strengths and weaknesses  Are internal to the business  Relate to the present situation  Opportunities and threats  Are external to the business  Relate to changes in the environment which will impact the business

7 Strengths are:  Things a business is good at  A characteristic giving a business an important capability  Sources of clear advantage over rivals  Distinctive competencies and resources that will help the business achieve its objectives

8  High market share  Achieving economies of scale  High quality  Leadership & management skills  Research and development capabilities  Technological leadership  Brand reputation  Distribution network  Employee skills  High productivity  Flexibility of production

9 Weaknesses are:  A source of competitive disadvantage  Things the business lacks or does poorly  Factors that place a business at a disadvantage  Issues that may hinder or constrain the business in achieving its objectives

10  Low market share  Inefficient plant  Outdated technology  Poor quality  Lack of innovation  A weak brand name  High costs  Cash flow problems  Undifferentiated products  Inadequate distribution  Low productivity  Skills shortages  De-motivated staff  Products at the decline stage of product life cycle

11  An opportunity is any feature of the external environment which creates positive potential for the business to achieve its objectives.

12  Technological innovation  New demand  Market growth  Demographic change  Social or lifestyle change  Higher economic growth  Diversification opportunity  Deregulation of the market  Government spending programmes

13  Threats are any external development that may hinder or prevent the business from achieving its objectives.

14  New market entrants  Change in customer tastes or needs  Demographic change  New regulations  Economic downturn  Rise of low cost production abroad  Higher input prices  New substitute products  Competitive price pressure

15  There is no point producing a SWOT analysis unless it is actioned! SWOT analysis should be more than a list - it is an analytical technique to support strategic decisions  Strategy should be devised around strengths and opportunities

16 MATCH STRENGTHS WITH OPPORTUNITIES CONVERT WEAKNESSES INTO STRENGTHS

17 WeaknessPossible Response Outdated technologyAcquire competitor with leading technology Skills gapInvest in training & more effective recruitment Overdependence on a single product Diversify the product portfolio by entering new markets Poor qualityInvest in quality assurance High fixed costsExamine potential for outsourcing or offshoring

18  Form a group of MAXIMUM 6 students.  Conduct self SWOT analysis.  Present it to the class after 30 mins discussion.

19 A : Takes the initiative in trying to exploit a business opportunity B : Takes time to understand and calculate the risks involved C : Makes an investment to set up the business D : Goes ahead, despite the risk that the business venture might fail

20  Much research has been done to examine the personality and other characteristics of successful entrepreneurs to see if there is a proven method or route to success.  You will find many lists of “what is takes to be an entrepreneur”, but they tend to say similar things. So here is a summary of the key findings!

21  Passionate about their product or service and about getting things right for the customer  Visionary – they have faith in what they are trying to do.  Energetic and driven – prepared to work consistently long hours, especially in the early stages

22  Calculated risk-takers – not reckless; they are prepared to take a risk in order to maximize the rewards  Multi-tasker – able to take on more than one role (product development, selling, recruitment)  Resilient and determined – able to handle problems and overcome hurdles. Setting up a business is difficult and time-consuming

23  Results-orientated – take pleasure from achieving targets and setting the bar higher.  Persuasive – entrepreneurs are good at bringing other people and businesses “along with the idea”  Leadership – an entrepreneur leads his or her own business (often working alone in the early stages). As the business develops, the skills of leading others become even more important

24  Self-starting and decisive – they don’t wait for others to take decisions. Entrepreneurs tend to take the initiative, spotting opportunities early and taking decisions quickly  Focused – sets clear goals and self-imposed high standards  Lucky – not to be laughed at! Every business needs some good luck – e.g. being in the right place at the right time.

25  The important thing to remember about the list is that an entrepreneur is unlikely to possess all these characteristics!  Anyone who starts a business has strengths and weaknesses.  However, the savvy entrepreneur recognizes where his/her weaknesses lie and takes steps to address them (e.g. recruit someone with the right skills).

26  Work in a group of MAXIMUM 6 students.  Presentation title: “A successful entrepreneur”  Presentation date: 9 th / 23 rd / 30 th MAY 2013 *MAX 3 GROUPS /SESSION*  Points to remember:  Show up early, Proper Introduction, Clear and Concise Points, Enhance your graphics, Conclude the presentation.  Time: 15 – 20 minutes.  REPORT DUE: 1 st JUNE 2013


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