MANECON
 a disadvantage relative to others.
SWOT ANALYSIS
WHAT IS SWOT ANALYSIS?
 Acronym for Strength, Weaknesses,
Opportunities and Threats
 Technique is credited to Albert
Humphrey who led a research project at
Stanford University in the 1960s and
1970s.
 Planning tool used to understand
Strengths, Weaknesses, Opportunities, &
Threats involved in a project / business.
 Used as framework for organizing
and using data and information gained
from situation analysis of internal and
external environment.
 Technique that enables a group /
individual to move from everyday
problems / traditional strategies to a
fresh perspective.
STRENGTHS
 Characteristics of the business or a
team that give it an advantage over
others in the industry.
 Positive tangible and intangible
attributes, internal to an
organization.
 Beneficial aspects of the
organization or the capabilities of an
 organization, which includes human
competencies, process
 capabilities, financial resources,
products and services, customer
goodwill and brand
WEAKNESSES
 Detract the organization from its
ability to attain the core goal and
influence its growth.
 factors which do not meet the
standards we feel they should meet.
OPPORTUNITIES
 Chances to make greater profits in
the environment - External
attractive factors that represent the
reason for an organization to exist &
develop.
 Arise when an organization can take
benefit of conditions in its
environment
 Opportunities may arise from
market, competition,
industry/government
THREATS
 External elements that could cause
trouble for the business
 External factors, beyond an
organization’s control
 Arise when conditions in external
environment jeopardize the
reliability and profitability of the
organization’s business.
 Threats are uncontrollable.
AIM OF SWOT ANALYSIS?
 To help decision makers share and
compare ideas.
  To bring a clearer common purpose Forecasting
and understanding of factors
 Provides a variety of information
 important factors linked to success
critical to forecasted variables.
and failure in the business world
Threats, for e.g., can impact
 To analyze issues that have led to
abusiness's forecast. By
failure in the past.
understanding the company's im6
 To provide linearity to the decision-
advantages & disadvantages,
making process allowing complex
forecasts will be more accurate.
ideas to be presented
systematically.
*More Benefits:

WHO NEEDS SWOT ANALYSIS?

 Job Holder
 Business Unit
 Company

HOW TO CONDUCT SWOT ANALYSIS?

1. Analyse Internal & External Environment
2. Perform SWOT Analysis & Document
3. Prepare Action Plans
Pitfalls:

BENEFITS AND PITFALLS OF SWOT

ANALYSIS
Benefits:
Knowing the Competition

 Reviews a company's competitors &

benchmarks against

Decision Making Tool

 Provides well-rounded information

that prompt well-informed
decisions.
CORPORATE PLANNING  Confidence
 Route Map
 Evidence to others of our thoughts
PLANNING
-it is a process of setting objectives,
Planning helps:
determining what should be done,
implementing the plan and monitoring and  Shape thoughts
evaluating the results.  Think through scenarios
 Co-ordinate activities
 Identify SWOT
PLAN  Examine risks
-a statement of intended means to  Communicate ideas
accomplish a goal

*A plan is more than a forecast

TYPE OF PLAN IN A BUSINESS *Forecasts are predictions
Strategic Plan *Plans are about what the business intends
-sets out the overall direction for the to do
business in broad scope *Forecasts are essential in planning

Business Plan TOP DOWN/ BOTTOM UP PLANNING

-the action that a business will take to
compete

Operational Plan
-details how the overall objectives are to be
achieved
-specifies what Senior Management expects
from specific dept. or functions

KEY PLANNING QUESTIONS:

THE BUSINESS BENEFIT OF PLANNING Where are we now?
Planning gives: How did we get there?
 Certainty Where would we like to be?
How do we get there?
Are we on course to achieve our targets?
THE PLANNING PROCESS
 Analyze the external and internal
environment
 Define the business and mission
 Set corporate objectives
 Formulate strategies
 Make tactical plans
 Build in procedures for monitoring
and controlling
THE PLANNING CYCLE
WHERE ARE WE NOW?
 Purpose of determining which
opportunities to pursue
 PEST/PESTLE
 Competitor Analysis
 Audit of Internal Resources
 SWOT Analysis
WHERE ARE WE GOING?
Vision
-Non-specific directional and motivational
guidance for the entire business
-what will the business be like in five years
Mission Statement
-business’ reason for being
-scope of the business and what
distinguishes it from similar businesses
Objectives
-SMART Objectives
Goals
-specific statements of anticipated results
PESTEL ANALYSIS
PESTEL
-stands for, Political, Economic, Social,
Technological, Environmental and Legal
-It is a simple and effective tool used in
situation analysis to identify the key
external (macro environment level) forces
that might affect an organization.
POLITICAL FACTOR
• Government stability
• Tax policy
• Trade control
• Import restrictions
• Competition regulation
• Tariffs
• Regulation/de-regulation
• Bureaucracy
ECONOMIC FACTORS
• Growth rates
• Inflation rate
• Interest rates
• Exchange rates
• Unemployment trends
• Labor costs
• Stage of business cycle
• Credit availability
• Stock market trends
• Trade patterns
SOCIAL FACTOR
• Health consciousness
• Education level
• Population growth rate
• Lifestyles
• Buying habits
• Religion and beliefs
• Age distribution
• Family size
• Minorities
• Life expectancy
TECHNOLOGICAL FACTORS
• Basic infrastructure level
• Rate of technological change
• Spending on research &
development
• Legislation regarding technology
LEGAL FACTORS
• Anti-trust law
• Discrimination law
• Copyright, patents / Intellectual
property law
• Consumer protection
• Employment law
• Health & safety law
ENVIRONMENTAL FACTORS
• Weather
• Climate change
• Laws regulating environment
pollution
 • Air and water pollution
• Recycling
• Waste management
• Carbon footprints

AIM OF THE ANALYSIS:

Always look the current external factors
affecting an org
Identify the external factors that may
change in the future
Exploit the changes (opportunities) or
defend against them (threats) better than
competitors would do