1.  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

4.  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.  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.  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)

8. 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. 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. 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. 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. SWOTSWOT

13.  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.  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)